Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1907-10-31
ABERDEEN BANKS
ADOPT MEASURES TO Protect
DEPOSITORS.
will Not Observe Legal Holidays, but
will Not Paw Out Money for the
purpose of HOardinq. Banks
Are in Splendid Financial COndi.
tiOn.

The money stringency in the east has
continued long enough to affect the Pa.
citic Coast, only because no currency is
being shipped anywhere. The banks in
all the large eastern cities have adopted
the clearing house system in order to
prevent panic that would be disastrous,
as well as absurd in view OF the real con.
ditions OF the country.
Under this system there can be no run
on any bank. A depositor may draw his
money out provided he put it in another
bank or use it in his business, but may
not do 90 for the purpose OF boarding it
60 as to put it out Of circulation. This
rule has been adopted in San Francisco,
Portland and the Sound cities, and work q
in this way: A depositor with a bal
ance in bank wishes to draw it out.
When he presents his check instead oil
receiving coin he is given a certified
check or draft that will be accepted as q
deposit by any other bank, or as pay.
ment of an obligation. To provide suffi.
cient cash for necessary business, each
city has fixed amount its banks will
pay in money, giving a draft for the
balance.
Following the lead of the governor oil
Oregon, Governor Mead issued procla.
nation yesterday morning declaring the
balance of this week legal holidays, for
the purpose OF preventing panicky run
on the banks Of the state. At a meeting
Of the Aberdeen banks held last night
it was decided not to observe the boil.
days, but to open the banks as usual.
A plan similar to that of the clearing
house system was adopted, to avoid a
run that would be disastrous not only ia
the banks and depositors but to every in.
dustry, business and individual in Aber.
deem. Drafts and certified checks will be
issued in payment of personal checks,
that will be received in payment OF bills
or at any OF the banks. Cash will be
paid only to the amount Of $40. To il.
ustrate this: A. B. takes his personal
check for 500 to his bank. He will re.
ceive $40 in cash and check or draft
for $50. He may take that draft of 800
back the next day and receive $40 cash,
and draft for $50. and SO on, &c that fol-
living expenses and the like, business
will not be hampered in the least, unless
it be by an unreasoning timidity Of the
depositor.
The banks in Aberdeen are all in splen.
did financial condition and conservative.
ly managed, and no depositor need have
the least fear of his money. Under the
plan adopted business can 90 on az usual
but without such measure the banks
would have been required to call in
every outstanding loan and force pay.
ments to degree that would be ruinoue,
According to advices from the east, the
difficulty there is about over, and this
measure will last but short time. All
that is required in this emergency is
that the depositors keep level heads and
not become excited. There is no cause
for the slightest apprehension. The
lumber trade on Grays Harbor is flour.
ishing, everybody is busy and prosperous.
Conditions all over the country have NOT
changed. Prosperity abounds every.
where. and the present furry is caused
only by the forced liquidation of a bunch