The evening star and Newark advertiser. [volume] (Newark, N.J.) 1907-1908, 1907-10-21
New York Clearing House
Again Assists Mercan-
tile National.
ATMOSPHERE IS CLEARED
Retirement of Heinzes, Morse
and Thomas From Official
Connection With Chain of
Financial Institutions Re.
stores Confidence,

NEW YORK, Oct. 21.--EVeryone in
terested in Wall Street n h finan
cial affairs in the city in general Eel
much easier over the banking situa'
ticn by reason of the Clearing Houst
hat aid would be ex'
tended to the Morse-Heinze-Thoma
banks il assistance were required. ,
When the United Copper corner col
lapsed last week and was ollowed by
the retirement of r. Augustus Heinzt
from the presidency of the Mercantile
National Bank disgusting rurnorS
were circulated as to the standing not
only of tina bank, but as to the sta
bility of the institutions controlled by
Charles w. Morse and e. r. Thomas,
who were associated with Heinze in
the Mercantile. These rumors rapidly
spread throughout the downtown dis
trict. and they had considerable to do
with the c%rumbling away of stock ex-
change prices last week.
The action of the Clearing House,
however, following the retirement of
Morse, Thomas and Heinze from their
New York banks. cleared h financial
atmosphere considerably, and sentiment
in and around the Stock Exchange was
IfIOIC tlltGIlul iOdhy hioh ~ SOA
weeks.
The Clearing House committee was
again in session this morning to deal
with the developments which might
arise in the banking situation. Man
ager Sherer, of the Clearing House,
said that institution had the situation
under control, that all the undesirable
elements had been eliminated, and for
this reason there would begin a new
era in banking in New York. 1t was
officially denied that it would be neces-
a to issue Clearing Hous certificates
in order to secure support for the banks
which have been under criticism.
The Mercantile National Bank today
owed the Clearing House IN balance
81, 900, 900. The National Bank of North
America owed the Clearing House
$3.50, 900 on balance. These sums We're
Unexpectedly large n indicated that
heavy Withdrawals were being made
from these two banks. The sum owed
by the Mechanics and Traders Ma
tional Bank was $430,000 and that owed
by the New Amsterdam National Bank
5000, 900.
The Clearing House Committee de-
cided at the meeting today to assume
the responsibility for the Mercantile
National Banks large debit balance,
This is the third consecutive day on
which the associated banks have gone
to the assistance of the Mercantile.
Seth M. Milliken, the newly elected
president of the Mercantile National
Bank, SAID today that, counting out
the Heinze-Morse loans, the assets OF
the bank are one dollar and forty cents
for every dollar of liability, and that
the loans in question are of value.
Besides choosing new officers for the
Observation-Disclosures banks and announc-
ing that each and eveIy n was In a
solvent condition., a most important step
has been taken here. This is the pledging
OF a fund of $4,000, 900 by a score of indi-
vidual banks to render such assistance as
the Clearing House committee may think
necessary.
: The meeting at which this was done was
the most notable gathering of bankers
that any occasion in recent years has
brought together. The deposits of the
banks represented at the conference
amounted to 81. $50, 600, 900. The men, fifteen
in all. and every one a practical banker,
convened at the clearing house while the
bells of old Trinity were ringing for the
beginning of church service yesterday.
The methods that have now been elimi-
mated from the local banking situation, II
is stated, are a development of the las
decade. They consist of the buying of q
bank, then putting up the stock represent
ing tina control as collateral for funds tc
buy control of mother bank, and eontinu'
ing the process with banks and trust com
panies, so that the result is a pyramid
controlling chains of financial institu-
lions. and their deposits,