Albuquerque citizen. [volume] (Albuquerque, N.M.) 1907-1909, 1907-10-29
.OEPOSITORS PROTECTED
MONEY KEPT At HOME
Business Men Make Statements
To Citizen Reporier--No Cur
renCy From Other Banks
SO They CeI None
From Here.

The forming or a Clearing house |
association by the local banks last
evening was not unexpected. In
fact 1t was urged by the business
men as well as by the bankers for
the purpose of keeping Albuquerque
currency in Albuquerque and in the
banks from where II can be circulat
ed so as TO prevent stringency in
this city.
That is all there Is to the propo-
stion here. The banks are sound
and safe and have several dollars
| securities for every dollar on de-
posit. 1t would be impossible to
| break one of the Albuquerque banks
| and that does not in any manner
securities held by our banks would
more than doubiy pay out.
! A run on one OF the local insti-
tutions, however, with money SO
tight in the east would prove em-
barrassing to the local banks and
would injure them absolutely with
out any necessity for so doing.
The action of the banks In en-
deavoring to hold the present cur
rency in this city was not only a
safeguard to our financial institu-
tioAs and our bxtAess houses. but
TO every depositor, who has right
to the fullest protection under these
unsettled conditions.
No Panic Possible.
1t would be impossible to precipi-
tate a panic here. 1t could not be
| done because of the strength of our
financial institutions and the gener-
al prosperous business condition of
| the southwest.
The forming of the clearing house
was made necessary because all of
the large cities and many smaller
| ones have taken similar steps and
because the deposits of our local
banks in institutions in other places,
can not be had in the form Of cur
rency for use here.
Consequently it is very necessary
that the currency now in our banks
be protected from drafts from other
institutions outside of our city
Local banks have large balances in
banks of other cities. Until the
other banks took such action as to
hold their currency at home. it was
possible for our local banks to Sc
cure all the currency needed Now
| II Is not In order 10 protect home
currency, our banks were forced to
get together, form a clearing house,
and pass similar resolutions. 1t is
purely a business proposition made
ing 10 do with local conditions other
than 10 protect them. 1t Is sane,
| safe, conservative banking business.
Certificates VIII be Used.
Checks will be received at all To-
cal banks and certified which makes
them as good as money without the
passing of currency which is need
ed right here in Albuquerque for
| business purposes. These checks
will go through the clearing house
: as usual and are good.
The action above mentioned was
taken by the local banks with ex-
treme reluctance and only after It
was seen that local business and To-
cal people needed protection from
a currency stringency at home which
might otherwise result As 1t is,
this city will never feel the stringen-
: cy now felt in the east
Business at the banks will proceed
! about as usual with the exception
that just as little currency will be
passed out as is consistent.
The local clearing house expects
that the rules adopted last evening
viii be in force but a very short
time. That will depend largely up
on the action Of the clearing houses
In the moneyed centers.
Local Banks Strong.
The local banks have nothing to
fear from the east and nothing to
fear at home. They are not only
! sOlvent-they are among the strong
est small banks In the entire coun-
try. and amply able TO more than
make good
.
was based upon good precedent and
good business sense is shown by the
action OF banks in the following lar
ger centers, all of which have been
communicated with and conditions
found 70 warrant such action as a
precautionary measure: Milwaukee,
st. Louis, Pittsburg. Cincinnati,
Cleveland, Philadelphia, Indlanapo-
T lis Des Moines. Omaha, New York
and Chicago. Telegrams stated that
. Kansas City and Minneapolis were
considering the matter, but had not
reached a definite conclusion.
Bankers Action Endorsed.
A Citizen reporter spent today
among the business men. making a
thorough Investigation of the fnan-
ciaI condition Of the city as far as
possible and asking poIntedly for
the Views of the business men upon
the action OF the bankers.
IL Is impossible to reproduce
every statement made by the busi-
ness men because of the space re-
quired, but not single business man