Lewiston evening teller. [volume] (Lewiston, Idaho) 1903-1911, 1907-11-14
Resume of Wall Street
BY Henry Clews

NEW YORK, Nov. IA much
better feeling exists in New York
owing very largely to two clrcum-
stances: first, the engagement of
over $43,OOO,00O of gold, and second
the saving of two big trust compan-
les from suspension. Other factors
also tended to give relief, such as the
clear-headed control of the situation |
exercised by strong financial leaders,
and the timely assistance rendered !
by the government at Washington.
In consequence of these developments
the security markets, though quiet, !
have shown a substantial recovery,
idation which has been necessary in
many quarters. While the strain up
on New York has thus been moder
ate, and the crisis apparently passed
without further disaster, the tinan-
cial pressure. has spread to all parts
of the country with varying sever
| ity. In all of our principal cities the
money stringency, though less acute
than in New York, has been exceed
ingly pronounced, calling for similar
methods of relief to those adopted
in this city. The situation, mote
over, is seriously exaggerated by the
disposition of the public to hoard
currency; but this evil. which is a
feature in all panics. is gradually
disappearing and the ship of finance,
though badly crippled by the recent
storm, is emerging in much better
condition than anticipated.
Praises Soundness of Banks.
Now that the worst is over, the
universal question asked is, what
mast now be expected? All prev
iOus panics show that after the &C
ute stage of crisis was passed
substantial recovery followed on the
Stock Exchange, to be succeeded by
period of more or less inertia and
depression. There is no reason to
anticipate any departure from this
rule in this panic, although the con-
ditions are not precisely similar to
those of previous crises, The one
saving feature in the situation is the
general soundness of our banks.
not always managed on the lines of
strictest prudence, are now as a
whole are now eminently sound and
have endured the tremendous strain
of the last few weeks in splendid
fashion. Dishonest management has
been thoroughly eliminated from our
banks and railroads and it is safe to
say that soundness and lawfulness
were never more prevalent in these
institutions than today. There Is no
reason for distrust in this quarter
The weakest element in the financi-
al field has been the trust companies
which had entered the field of bank
ing in competition with the banks,
but without the restrictions and safe
guards of the latter. A breakdown
in this quarter has long been expect
ed, and one important advantage
from recent experiences will be that
in the future all trust coE.panies
will have to be managed on sound
and conservative lines.
Eollxy ~ Hoo ,J;rc HonoS.
The effects of the financial dis
turbances are now extending into
the commercial world. For self-pro-
lection the banks are compelled to
materially restrict their credit oper-
ations. Many business concerns will
consequently have much difficulty in
renewing their obligations and bust
ness will naturally be compelled tc
contract more or less in accordance
with the restriction of credits. How
far this contraction will go and with
what consequences it is impossible tt
predict, but the sooner the fact i
recognized that general bushes
must take its share of the depression
which has fallen upon Wall Street
the better for all concerned. Every
thing possible should now be done t.
rebuild confidence and restore credit
Hoarded money should be restored Il
the banks in order to enable then
to better grant the accommodation
which it is their business to furnish
1t is sheer folly to take money on
of the banks and hide it in stocking
or safe deposit vaults. If deposition
are unwilling to invest their fund