The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1907-10-26
MILLIONS FOR LOANS
Quieting Effect on Market
by Offerings of Wall
Street Leaders
ISSUES CERTIFICATES
Clearing House Evolves a
Plan to Help Big
Companies

NEW YORK, Oct. 25.-Another
nerve racking day has passed, but the
financial institutions of NV York
have shown extraordinary power OF
resistance to the pressure put upon
them. While it is true that several
minor institutions have been forced
TO close their doors, yet two things
should be said about them.
First, the amount involved was not
as great as to exert any marked in
fuence on the general situation, as
these banks were located in the resi-
dental quarters and did not come into
touch with the larger institutions of
the metropolis; and, second, there is
every reason TO believe that these
banks and trust companies are entirely
solvent and their difficulties viii prove
70 be temporary and due entirely TO
inability to secure ready cash on the
gilt edge securities in their vaults.
OF course, the cessation by these
companies caused trouble TO many peo-
pie but not 50 great as It might seem,
as the depositors are for the most part
located in the well to DO quarter OF
the city and many of them are people
Of wealth. who have suffered no great
Inconvenience. In the light of COM
n-erciaI -eNcltesaess the lsazfngs hanks
thought it wise to put into effect the
rule requiring so to so days notice for
the withdrawal of deposits.
KEEPS MONEY IN THE BANKS
This win prevent the withdrawal Of
money which would be otherwise put
in safety deposit boxes The savings
hanks, II they continued to make pay
ments, would be obliged to withdraw
funds from national banks, thereby
causing an additional strain on the
general banking situation. There was
not the slightest hint that any one Of
the savings institutions was IN any
thing but a solvent condition, and it
was pointed out that the savings banks
OF this state were so restricted by law
in investing their money that there
could be no question that all securities
IN their possession were OF good value
and readily salable in normal times.
The institutions which closed their
doors today. with the sums due de-
positors. were:
United States exchange bank. Har-
lem. $500, ,000
international trust company, about
100000.
Borough bank OF Brooklyn, $4,000. 900.
Brooklyn bank. sl.soo.0eO.
Williamsburg trust company, Brook
lyn. $7.5oo.OOo.
First national bank OF Brooklyn,
SO, SOC, 900.
The First national bank OF Brook
iyn, the Williamsburg trust company
and the International trust company
were allied institutions. None OF these
companies had any important business
connection with the larger banks
which are representative OF the city's
financial affairs.
nv NOAAi1oA-A1 LIZ L<AOE 11E1N4S
On the other hand. a number OF ia
vorable features marked the day. The
Trust Company of America and the Lin
coin trust company. the organizations
which suffered most from runs. have
been paying out slowly 70 their de-
positors and closed today, all demands
having been met.
In the case OF the Trust Company of
America the run was well nigh spent,
as the great bulk OF depositors have
been paid on At the close OF business
there were a good many in line at the
Lincoln trust company. but there was
q marked reduction in the number of
anxious depositors.
The stock exchange was provided
with funds ample to meet its imme-
date necessities by a money pool,
headed by J. P. Morgan. which sent
SIS, 5,00o,00 TO the exchange during the
afternoon. The stock market had held
relatively firm all day, but when the
pool OF money was offered in the loan
corner there was an Immediate upturn
Of prices and the market closed strong
at the best prices of the day.
AS all of the loans made today hold
over until Monday the stock exchange
situation will not be a factor in the
problem that the bankers may be called
upon to solve tomorrow.
A very encouraging feature of the.
afternoons development was signed
statement by Clark Williams. the new
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