Daily press. [volume] (Newport News, Va.) 1896-current, 1907-10-26
THREE SMALL BANKS
CLOSE THEIR DOORS
New York Capitalists Say They
Have M Bearing on Situation
aid Conditions Are Better.
YESTERDAY A NEaVE.2ACK'NG DAY
Savings Banks Compel Depositors to
Give Thirty or sixty Days Notice
of Withdrawal of Accounts-Plenty
of Money on the Stock Exchange
Clearing House Certificates.
tBy Associated Press.)

NEW YORK Oct. 25-Another
nerve racking day has passed but the
financial institutions OF New York
have shown extraordinary power OF
resistance to the pressure put upon
them
While i: is true that seYe,a minor
institutions have lieen forced to close
their doors. yet two things should be
said about them-frst, that the
amount involved was not so great ms
to exert any marked influence on the
general situation as those banks were
located in residential lin ters and did
not come into touch with the larger
financial institutions of the metropolis.
ana SecCnd-tlat the. c are several rea-
SONS 10 believe that these banks and
trust companies are otirely solvent
and their difficulties will prove TO be
only temporary and due entirely to in
ability to secure ready cash on gilt
edged securities in their vaults.
In the light of the general excite
ment. the savings banks thought It
wise To put into effect the rule re
curing thirty 10 sixty days notice for
the Withdrawal of deposits and this
Will prevent the withdrawal of money
which would otherwise he put In
safety deposit boxes. The savings
banks, If they continued to make pay
mcnts, would be obliged to withdraw
funds from the National banks. there
by causing an additional strain on the
general banking situation. There was
not the slightest hint that any of the
savings institutions was in anything
but in the soundest condition as it
was pointed out that the savings
banks of this state are so restricted
by law in investing their money that
there can be no question that all OF
the securities in their possession arc
of good value and readily salablc in
normal times.
The institutions which closed their
doors today with the sums due de-
positors. were: the United States En-
change Bank Harlem. Sc 100000. In
ternational Trust Company. Brooklyn.
81 300, 900. The First National Bank
of Brooklyn, s3.500,OOO
The III st National Bank of Brook
lyn ahe Williamsburg Trust Company
and the International Trust Company.
We're allied institutions. None of
these companies had important con
nections wit hthe larger banks. which
are representative of the citys finan-
cial affairs
On the othre hand, number of fa.
vornble features marked the day. The
Trust Company of American and the
Lincoln Trust Company, the two or
CARNATIONS which have suffered most
from runs. have been slowly paving
out their deposits and closed toda,
with all demands having beer met
In the case of the Trust Company OF
America, the run has VOL nigh spent
It's ioce rs the bulk of the depositors
have been paid OFF AT the close of
business there We're q good many in
line AT the Lincoln Trust COMPANY.
but also there was Il marked reduction
in the number of anxious deposltors.
Plenty Of Money fer Stock Exchange.
Tho most favorable incident of the
day was that the stock Exchange was
provided with funds ample to meet its
immediate necessities by a money
pool headed by j. Pierpont Morgan.
which sent about Sl5 100000 to the
Exchange during the afternoon As
all The loans made today hold over
until Monday. the Stock Exchange
situation will not he affected in the
problems that bankers mny be callet
upon TO solve tomorrow
very encouraging feature of the
afternoons Developments was sign
ed statement by Clarl; Williams. the
newly appointed state superintendent
OF banking, affirming the solvency of
the local institutions
further encouraging development
OF the afternoon. the good effect Of
which can scarcely he over estimated.
was the decision arrived at. unofficial
~. To issue clearing house certificates.
probably tomorrow There Will he a
full meeting of the clearing houses A.
ISOLATION tomorrow morning at II
o'clock for the purpose of taking OF
fetal action for the issuance of these
certificates.
The immediate effect of this will be
to enable the banks to settle The bal.
auaes between themselves with these
crtiticates. and thereby release large
sums of currency for the regular
needs al business.
Clearing House Certificates.
The decision to issue clearing house