The daily morning journal and courier., 1907-11-05
But Trust Companies Must Ad- here to Thoroughly Con- servative Methods
 in Future.
BOTH INSTITUTIONS
 ARE FOUND SOL VENT
Prices Rally and Crisis Thought to be 0ver-Plans for Restoration of Con-
 fidence.

New 1orK, NOV 4.-Ihe buoyancy of the stock market to-day reflected the ultimate decision of large bankers to support the two institutions, the trust company of America and the Lincoln Trust company which have been sub Jected to the most severe runs during | the last two weeks. The day was one of doubt and conflicting rumors and the fact that it passed without adverse de- velopments is an evidence that the worstof the situation is probably over. lAt a late hour this morning an agree ment was reached, largely through the influence of MT Morgan, by which the trust companies will cooperate in fu- ture for their mutual protection and the directors will lend the assistance of their personal fortunes to meet i'm mediate necessities. The assets of the two threatened companies were care fully gone over by the experts on Sat urday and Sunday and both of them were found to be solvent, with a con- siderable surplus after paying all claims and providing for the capital stock. Under these circumstances it was thought advisable by the big men to support them cordially if they would adhere to thoroughly conservative methods and direction in the future. The achievements of these results to-day, with the steady upward move ment of the stock market till near the close, is believed to mark the turn of the crisis. The loss of $30,000.000 in cash by the clearing house banks ac- cording to their Saturday statement in spite of the $3O,000,000 which had been poured into their tills during the week from the treasury, was expected to have a disturbing effect. It was a worse showing than will be possible again in the face of the heavy arrivals of gold. Gold engagements since the beginning of the present movement now amount to $S2,750,0o0, which would more than bridge the loss in surplus reserve last week. The disturbances which are sweeping over the exchange market and arousing concern in foreign markets were indicated to-day by the rise of foreign exchange in New York considerably above the point at which gold could proftably be imported. The fact that 1t Is still coming this way indicates the determination of New York bankers to strengthen their po- sition even at loss. The high rate for bills was caused by the demand for exchange to cover the arrivals of gold. The cotton bills are not vet fully available because shipments are slow and the bills themselves are sub- jected to considerable scrutiny before they are taken. The fact that the New York market bid sufficient premium, for gold to absorb e4SS,0 900 from the open market and to withdraw an addi- tional amount of G4S3,000 from the
 Bank of England, indicated that the 1 increase in the discount rate of the Bank of England made at a special
 meeting to-day before the opening of the New York market, from 5 1-2 to | 6 per cent, was not sufficient to check the gold movement. Hence arose much
 talk in London that the rate would be advanced to I per cent. at the reeuIer | meeting of the board of governors on 1 Thursday. This will be the highest
 rate attained for many years, but with | $32, 760,000 in gold already on the way to New York or engaged for shipment.
 even a higher rate at the Bank of Eng
 land would probably not injure mater | lally American credit. It is still be- lieved that the Bank of France womb
 aid the Bank of England by loans on
 sterling bills at Paris Is the situation required 1t.
 Reports from Washington indicate
 that the national banking situation throughout the country IS sound and
 that the efforts of the controller of the currency to get notes into circu1aA ton are meeting with considerable success. The calls for bank circula- ton are so numerous that the mail
 can hardly be handled promptly bv
 the clerks in the office of the conn
 troller. Some of the as1ounts applied for are small, but they are scattered
 all over the country and 1t Is believed
 will aid materially in relieving local
 pressure. The price of United States
 bonds was flrmer today than for some
 time, showing an increase in several
 classes of half of one per cent. and indicating that the banks were in the
 market as purchasers. From Boston
 came the gratifying news that +ha
 legal reserve of the clearing house
 banks had lost only $1,151,571 during
 the past week and stood considerably
 above the legal requirements of 25 per cent.
 The fact that tomorrow, election
 day, is legal holiday in New York
 will afford time for further perfect- ing plans for mutual support. which
 were well under way to-day.
 It was stated to-day that the ele-
 vators, boats and warehouses at Ruf-
 falo have S,60O,OOO bushels of grain
 and 50 carloads of merchandise and
 manufactured goods, very largely for 1 export, against which drafts for gold
 could be drawn the moment it is load
 ed on vessels that are waiting at At-
 lantic ports for 'cargoes. The mag
 nitude of this accumulation of Amer
 1can products is indicated by the fact
 that the railways find themselves un-
 able to move it to the seaboard not
 withstanding the enormous develon- Dment of traffic facilities within the last few years.
 The New York Central lines have in
 creased the number of their locomo-
 tives S1 per cent within the last few
 years and the freight equipment has
 been increased 67 per cent, at an exSS