The daily morning journal and courier., 1907-10-22
BANKS STILL IN
 NEED OF HELP Clearing House Promptly Gives It and Does Much to Allay Further
 Alarm.
MARKET REFLECTS
 THE IMPROVEMENT
Evidence, However, That Clearing House Committee Still Regards situa-
 tion Serious.

 New York, Oct 21.-Late tonight the National Bank of Commerce gave. twenty-four hours notice to the Clearing House association, of which it is a member, that after tomorrow it would no longer clear for the Knickerboeler Trust company The directors of the National would not comment on their action. The Nation 1 al has for some time acted as clear ing agent for the Knickerbocker.
 Following the action of the Ma tional or coincident with it there was a conference of the directors of the Knickerbocked Trust company at an uptown hotel The conference was continued long after midnight and in the meantime nothing of what was being done was given out. It is un- derstood, however, that Charles T. Barney, president of the Knickerbock- CT, placed his resignation in the hands of the directors who at once decided upon A. Foster Higgins to succeed MT. Barney in the presidency of the institution.
 New York, Oct 21,-The recent ten sion of the banking community was to-day considerably relieved and the day passed with no adverse develop ments of a serious character, but with much that was reassuring. At the same time there was evidence that some of the banks most affected by re- cent events were still in need of assist ance, but the. promptness with which the clearing house accorded it did much to allay further alarm,
 The general Improvement was re- tiected in the buoyancy of the stock market and the steady advance in pric- a rom previous low levels. On the other hand, the conservative element deferred too optimistic view until the relief given by the clearing house had continued for several days and had permanently re-established the stabil- iity of some of the weaker institutions, notably the Mercantile National Bank and the New Amsterdam National Bank.
 The Clearing House was called upon to-day to meet debit balances of the Mercantile and the New Amsterdam banks to the extent of upwards of $2 ,000, 900 of which the mercantile owed about s1,90O,O0O and the New Amster- dam s200,0 00O The debit balance of the National Bank of North America amounted to $S50OO0 While there was said to have been some discussion be- tween the clearing house committee and the officers of the latter bank as to the necessity of giving it any sup port 1t was not found necessary to do so and William F. Havemeyer, the new president of the institution, declared that the bank of North America had 7 not and would not ask one dollars aid from the Clearing House.
 ''The situation" MT. Havemeyer said, lis really far better than we expected. So far only about $15OOOO has been withdrawn. When the bank opened this morning we had million dollars on hand to pay all corners, but only a small portion was used"
 The fact that the clearing house com mlttee regards the situation still se- rious was shown by the remark of a member of the committee that the Mercantile banks debit balance was ''unexpected large and disconcerting. The committee remained in session the greater part of the day discuss ing a general plan of policy with re- gard to assisting such banks as might need help. After the committee hat adjourned for the day, James T. Wood. ward, president of the Hanover Ma. tional bank and chairman of the com. mittee, said that conditions were i'm proving and that the committee fel equal to meeting any emergency tha might arise tomorrow.
 William sberer, manager of tht clearing house, said the situation wal under control, that some of the nor, awkward features had been eliminated and that from this time there woult begin new era in New York banking MT Sherer said also that the clearing house committee would carry out tn policy announced yesterday of assist ing the weaker banks to discharge ob ligations. The committee, it was add ed, would meet every morning to pas upon the collateral offered, in settling debit balances.
 The new. officers of the Mercantil Bank and Bank of North America wei engaged to-day in clearing up man .old accounts and obligations contraete by the preceding administrations an in inducing borrowers to take up thei loans so as to provide the banks wit sufficient cash to meet their more pres sing requirements.
 On the Stock Exchange the improve banking condition resulted in a rally pronounced proportions, the more at tive issues advancing two and thre points, with greater gains in some the speeialties. Part of this advant