Northern Wisconsin advertiser. [volume] (Wabeno, Wis.) 1898-1925, 1907-10-31
MORGAN SAYS
TRUST THE BANKS
PRAYs PEOPLE NOT TO DRAW
THEIR MONEY OUT OF
REPOSITORIES.
cALMNEss AND GROWING EN-.
couRAGEMENT DOMINANT
FEATURES OF SITUATION.
GOLD COMING FROM ABROAD
AND MUCH LEGAL TENDER
Is AVAILABLE.

New York, Oct. 27.-In response to
request of the Associated Press as
to his view Of the present situation.
J. Pierpont Morgan said Saturday:
AS / have already said, | cannot
too strongly emphasize the Importance
OF people realizing that the greatest
injury that can be done to the pres
ent situation is the thoughtless with
draWal of funds from banks and
trust companies and then boarding
the cash in safe deposit vaults or else.
where, thus withdrawing the supply
OF capital always needed in such
emergencies as that with which we
have been confronted during the past
week."
James Stillman, president of the
National City bank, who next to Mr..
Morgan has done more to bring out
solution of the financial difficulties
In New York than any other man.
said:
The wise and heroic action of the
secretary of The treasury and the
splendid efforts of Mr.. Morgan with
assistance of the clearing house, have
demonstrated the sound financial con-
dition of the clearing house banks of
this city. Now, however in order to
facilitate shipments of cotton, grain
tobacco and other produce and to ia.
cllltate imports of gold, the associated
banks have wisely decided to combine
their credit by the issuance of clear
Ing house certificates and thus pre-
vent the paralyzing of very large
part of the business of the country"
Calmness and Encouragement.
Calmness and growing encourage
ment were dominenu features of the
financial situation when the great
banking institutions closed their week,
with all the great financial institu-
lions of the city intact after having
met the unprecedented demands of
the past week. With this signal
demonstration of the resisting powers
OF the banks came the adoption of
important measures to prevent a re-
currence of the acute strain.
Powerful Remedial Measures.
First of Importance in the remedial
measures was that of the clearing
house association voting to issue
clearing house loan certificates for the
use of banks themselves in settling
their daily balances at the clearing
mouse. Plans also were formulated to
extend the benefits of clearing house
certificates to trust companies as well
as to the banks which are at pres
ent members of the clearing house
association.
Getting Gold from Abroad.
Another extremely important feat
ure of Saturdays news was the an
nouncement by the National City bank
that it had engaged s5,OO0,000 of gold
for import. 1t is believed by bankers
and exchange brokers that this en-
gagement is the beginning of what
viii probably be continuous move
ment Of gold to New York from
.abroad. In connection with the pres
ent situation, it is stated that under
the operations of the gold standard
law, the accumulation of gold in the
treasury, including that held against
gold certificates, now stands at
s92S.000,000, which is the largest gold
stock In the world.
Much Money on Hand.
The clearing house banks Of New
York showed Saturday special hold
ings OF $19e,426, 900, of which nearly
all kwas in gold, and legal tender hold
mi OF s5S,2S3,700. These items
s6Jwed a decrease of s12,900,000 in
the bank statement of Saturday as
compared to that OF week ago, but
the total reserve on hand stood at
s254,709.7 700, which was only s1,233.-
300 below the legal requirement OF
% per cent
How Certificates Work.
New York. Oct. 27.-The decision OF
the clearing house association to issue
certificates means that hereafter large
balances against any particular bank
at the clearing house can be settled
In clearing house certificates and the
bank allowed to retain its cash to
meet other demands. The certificates
will be issued. as usual. only upon the
deposit with the clearing house com
mittee OF acceptable securities. and
only in such amounts as the clearing
house committee shall approve, but in