The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-11-05

- by the banks TO guarantee the :.
y scrip. Banks will be permitted to :.
- issue scrip up to 70 per cent of the :.
= value of the security given. :.
New York. Nov. 4.-The buoyancy of
the stock market today 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
1ected 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 ad-
verse development is an evidence that
The worst of the situation is probably
over. AT a late hour this morning an
agreement was reached, largely
through the influence of Mr.. Morgan,
by which the trust companies will CO.
operate in the future for their mutual
protection and the directors will lend
the assistance of their personal for
tunes TO meet immediate necessities.
The assets of the two threatened COM
panies were carefully gone over by ex-
perts on Saturday and Sunday, and
both OF them were found to be solvent,
with considerable surplus after pay
ing all claims and providing for the
capital stock Under the circumstances
it was thought advisable for the big
men TO support them cordially if they
would adhere to thoroughly conserva-
tive methods and direction in the flu
ture.
Gold Engagements.
Gold engagements since the begin
ming of the present movement now
EVea =
more than bridge the loss in surplus
reserve last week.
The disturbances which are sweeping
over the exchange market and arous-
ing concern in foreign markets were
indicated today by the rise of foreign
exchange in New York considerably
above the point at which gold could
profitably be imported. The fact that
It is still coming this way indicates the
determination of New York bankers to
strengthen their position even at a loss.
The high rate for bills was caused by
the demand for exchange to cover the
arrivals of gold
Cotton Bills Not Available.
The cotton bills are not yet fully
available because shipments are slow
and the bills themselves are subjected
to considerable scrutiny before they are
ldhCUs AdNt llldl Tic new 1OIh
market bid a sufficient premium for
gold to absorb s300.000 from the open
market and to withdraw an additional
amount of e4S3, 900 from the bank of
England indicated that the increase in
the discount rate of the bank of Eng
land, made at a special meeting to-
day before the opening of the New
York market, from five and a half to
six per cent, was not sufficient to
IL he
arose much talk in London that the
rate would be advanced TO seven per
cent at the regular meeting of the
board of governors on Thursday. This
will be the highest rate attained for
many years, but with S32, 900. 600 in gold
already on the way to New York or
engaged for shipment, even a higher
rate at the bank of England would
probably not injure materially Ameri-
can commercial interests.
Reports From Washington.
Reports from Washington indicate
that the national institutions through
out the country are sound and the eff
forts of the comptroller Of the currency
10 get notes into circulation are meet
ing with considerable success. The calls
for bank circulation are so numerous
that the mail can hardly be handled by
the clerks III the Office OF the comp
troller. In some of them the amounts
applied for are small. but they are
scattered all over the country, and il
is believed will aid materially in re-
lieving the local pressure. The price
OF United States bonds was firmer to-
day than for some time. showing an
increase in several classes of a half of
one per cent. and indicating that the
banks We're in the market as purchas-
ers. From Boston came the gratifying
news that the legal reserve of the
clearing house banks had lost only ST.
751,571 during the past week and
stood considerably above the legal re
quirement of % per cent. The fact
that tomorrow, election day, is a legal
holiday in New York will afford time
for perfecting further plans for mutual
support which were we'll under way
today.
Continued on Page 2.