The Vinita daily chieftain. [volume] (Vinita, Indian Territory [Okla.]) 1902-1913, 1907-11-02
Saturday, vINIrA, OKLA. Nov.
TIE sPECULAroRs' PANIC.

Der / sums up the present tinan-
cial situation as follows
The panic broke with full force on
the whole country Monday, October
2S. On Sunday bankers conferences
were held in every town in the United
States. In order to prevent runs on
banks the various financial instltu-
tions in different cities adopted
the clearing house certificate plan,
which plan was devised to keep busi-
ness moving without requiring the
banks to pay outall of their cash on
hand. Cash payments were every
whore suspended although checks
were honored to the extent of
small per cent Of the individuals
deposit. The newspaper dispatches
Of the day told this story: "New
York bankers have engaged about
$12,000,000 in gold in Europe.
Bankers Trust company Of Kansas
City closed because denied the priv
ilege Of issuing clearing house GER
tificates. Has deposits of $500, 900.
All the banks in Oklahoma closed
for week by holiday proclamation
of governor because unable to get
cash from Kansas City and st. Louis
banks. Duluth grain market sus-
pended and elevators advised not to
buy grain. Wheat broke four cents
at Chicago and ID at New York and
all grain weak. Runs continue on
two small banks at New York. New
York stock market opened at an ad-
vance"
In an editorial entitled ga Bank
Situation Without Precedent" the
Omaha World Herald says: "ln
the midst of great prosperity several
thousand of the leading banks of
the United States yesterday sus-
pended cash payments. They had
hundreds of millions of dollars in
their vaults belonging to their de-
positors, but they refused to pay it
out. This occurred all over the
United States and it came with a
suddenness which took everybody
by surprise, including the bankers
themselves. For such On occurrence
there lis no parallel in history and
no warrant in law. Unquestionably
the first effect Of such perform
ance is a skcak which will jar the
business world from center to cir
cumference. Everyone will feel it
and few will escape damage. There
il, however, some satisfaction in the
reflection that such a universal and
such an acute attack cannot last
long. Whatever change occurs now
will be for the better. Apparently !
we are now all in the same boat |
with New York and as her condition |
improves ours will mend. Two |
great factors have combined to |
force the troubles of New York on |
the rest of the country. One was
the fact that the rest of the country |
had several hundred million dollars
in New York banks which had united .
in refusing to pay it out. The other
vas that the crop-moving period |
having arrived, western and south
ern banks, unable to get their money
from New York, were getting it from
the other reserve centers, Chicago
being the chief. With thirty or forty
million dollars tied up in New York,
Chicago could not meet the strain
and not only suspended, as New
York had done, the making of cash
payments, but advised and forced
the other cities of the west to do
the same. The effect will be to keep
money in the banks, to expand the
currency by the injection Of certified
checks, cashiers checks and clear
ing house certificates, and to give
the country time to regain its hnan-
cial equilibrium" !"
In the midst Of this time Of plenty