Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-10-28
Reports From All Parts of Country Tell of Continued
Prosperity; Money StringencyA York lone

II was found in 1898 that while cur
rency went to a slight premium in
certain cases the public generally ac-
cepted the suspension of currency
payments with equanimity. Runs upon
banks ceased because the object of
such runs, namely to lock up cur
rency, was defeated by the decision to
pay only in checks acceptable to the
clearing house.
large force of clerks were at the
clearing house today prepared for the
issuance of loan certificates tomorrow.
These are in $4,000. $4,000 and $40
GOO denominations, and in the follow
ing form:
This certifies (name of bank) has
deposited with this committee securi-
ties in accordance with the provisions
Of a meeting Of the association, upon
which this certificate is issued. This
certificate will be received in pay
ment of balances for the sum of $4,000
from any member of the Clearing
House association.
"On the surrender Of this certificate
by the depositing bank above named
the committee will endorse the amount
as payment on the obligations of
said bank held by them, and surrender
a prOportionate share of the collateral
This is the form as used i'm 1898.
when these certificates were last used
At that time the certificates were of
great benefit and aided materially in
clearing the very serious situation
then existing In this connection, New
York bankers commended the action
of outside cities in adopting the same
plan for the protection Of their sup
plies OF cash. They foresee that this
will greatly relieve the strain at out
side points, permitting them to use the
certificates in the place Of cash. and
also having the salutary effect of
keeping down the drain of outside
cities upon New York When New
York adopted the certificates in 1893
the system became almost universal
throughout the country, and every
where the result was beneficial
one prominent banker pointed out
that it could not he brought to the at
tention Of the country at large too
that the present situation Is
one dealing solely with the supplies Of
currency and that neither the business
credit of the nation nor its industrial
and agricultural prosperity is affected.
In this respect there is a sharp con-
trast with the conditions prevalent in
1898. At that time many factories
NltSths ldillbtN buSliitS' NtlH a.
a low ebb. and all parts of the country
were feeling the strain Of acute busi-
ness depression Today. on the con-
trary, the country is extremely pros
porous, manufacturing plants are run
ming full all the time TO keep up with
railroad earnings are the high
est ever known, and the crop pros
poets are excellent. The banks them
selves. especially those of New York,
have i'm their vaults Understanding
securities of the best character on
" hich in ordinary Tunes they would be
able to realize large sums of money
1t is with these securities and good
commercial paper as collateral that
the clearing house loan certificates
will be issued to the extent of 75 per
cent of their salable value. Thus II
will be seen that every SIS of loan
certificates issued is secured by 800
worth Of property,