Los Angeles herald., 1907-11-07
TRUST cos.
WE'D FROM
HEAVYLOS
FiNANCIERS TAKE OVER TWO
WEAK CONCERNS
MORGAN AND ASSOCIATES TO
THE RESCUE
More Gold Is Engaged in London for
New York Banks-France's
Action Relieves the
Situation
BY Associated Press.

BY Associated Press.
NEW YORK, Nov. 6.-The general con-
ditions of the financial situation were
favorable today. The runs on the trust
companies had practically ceased under
the encouraging support of the trust COM
pany committees; gold engagements We're
further increased and the stock market
rose buoyantly in recognition of these
conditions.
The announcement by Mr.. King presl-
dent of the Union Trust company. early
in the morning that an agreement had at
last been reached by which the Trust
Company of America and the Lincoln
Trust company were to deposit their
stocks in the hands of committee of the
trust company presidents. and in con-
sideration of this were to receive all the
support required, finally cleared the air
in regard to the trust company situation.
Grave apprehension existed after the
termination of the conference at Mr..
Morgan's house at o'clock this morning
that an agreement in regard TO the two
trust companies would not be reached and
chat they might be subjected to run too
strong for their impaired resources.
Now that this danger Is removed it is
believed that the situation will gradually
simmer down with the continuous arrival
of gold until the stringency is converted
into the plethora of reserve money in
banks which usually follows crisis.
More Gold Engaged
additional gold engagements were an
nounced today of $1,000,000 on account CT
Lazard Freres and $50O,000 for Montreal
This brings up the total gold engage
ments for America on the recent move
ment to S7,50O,O0O, which would afford the
amount required for legal reserve against
deposits of s150000,000
\ The gold which arrived yesterday was
deposited today, and that brought by the
Lusitania will soon be in the vaults Of
the banks. There is still some apprehen-
sion regarding the possible effect of the
Bank of England checking the outflow OF
gold from London by raising its discount
rate on Thursday.
There is strong feeling, however.
among conservative fnanciers here that
the Bank of England will be very reluc-
tant to fix a rate of discount which has
not been touched since 1873. 1t might have
been found necessary to overcome this
reluctance if the Bank of France had not
so generously dipped into it's immense
reserves under the enlightened policy IF
Governor Pallaine by the purchase Of
sterling bills to the amount of e5,0OO00O
to relieve the London market
Stock Market Improves
The strength of the stock market was
the reflex of improved feeling throughout
the financial community. 1t is believed
the stock market has pretty well dis
cussed the worst and that prices are not
likely to go much lower even In case OF
new disturbances.
1t is understood the arrangement by
which the committee of trust company
presidents takes control of the majority
of the stock of the Trust Company OF
America and the Lincoln Trust company
is only a temporary device to re-establish
confidence.
What will be the ultimate disposition
of this stock has not yet been seriously
considered but it is certain that the trust
company cor1mttee and the clearing
house committee will insist that these
companies pursue in the future a policy
of the strictest conservatism and shall
not embark in any underwritings which
are not capable of being converted readily
into cash.