Perth Amboy evening news. [volume] (Perth Amboy, N.J.) 1903-1959, 1907-10-26
Clearing House Takes Steps to
Prevent Further Disturbances
Millions Do Il.
MORGAN MAN or HOUR.
Savings Banks Take Advantage
Of The Sixty Days Notice
From 0epositors.

there were lines OF depOSltOrS today
at the banks and trust companies on
which runs have been made, the feel
ing generally is much better this
morning. Negotiations now are un-
der way for the Importation of six
millions in gold by the National City
Bank.
The stock market in Pittsburg is
still closed.
There was calmer tone in the To-
cal market at opening and the first
prices showed gains over last night.
Trading is irregular, and dealings
moderate.
At Providence, r. L., the clearing
house committee decided to come to
the assistance of the local banks
whenever called upon.
At meeting of the clearing house
today it was decided to authorize the
issuance of clearing house certificates.
The terminal Bank of Brooklyn,
closed it's doors today.
NEW YORK, Oct. 2G.-The Clearing
House association met this morning at
IL o'clock and arranged for the issuing
of clearing house certificates in order
to break the stringency in the money
market. Similar action has not been
taken since 1893, when the clearing
house issued 49,14O.O00 and straight
ened out the then demoralized financial
situation
This is the most radical measure the
clearing house can take. 1t means
that in place of the transfer of large
amounts of cash certificates will be
issued instead. These transactions re-
late only to clearing house banks. not
to the public generally. After the close
of banking hours Mr.. Morgan and the
more prominent members of the Clear
ing House association had a confer
ence at Mr.. Morgan's Office, where it
was decided to call the meeting.
Mr. Morgan and several other finan-
ciers again put their shoulders to the
wheel and threw S15,OOOOO0 more into
the stock exchange for the purpose of
easing the call money situation, which
had again become acute. This action
was taken at meeting held at the
clearing house. the conference lasting
only five minutes. Among those who
met Mr.. Morgan and accepted share
of the responsibility were Messrs. Still
man, Nash, Woodward, Hepburn and
Simmons. The money was quickly
snapped up when it appeared on the
exchange, most of it being put out at
once. The rate went up to 100 per
cent before the exchange closed. but
the stock market rallied sharply and
ended we'll above Thursdays prices.
Secretary Cortelyou spread over the
situation another generous portion of
government funds, amounting to $S,-
600 900, and announced that he would
continue to lend all the assistance in
his power to the banks.
Heavy importations of gold are an
nounced from England. and big Lon
don purchases Of American stocks
promise another large balance in our
favor
Under the advice of Mr.. Morgan the
larger dealers on the exchange have
decided for the present to discourage
dealings on margin and buy and sell
for cash.
That the banks might have all the
available cash possible with which to
weather the financial storm the edict
went forth from J. z. Morgan that all
stock market speculation should cease.
The brokers were told not to buy OF
sell stocks on a margin either for them
~
to sell short for any one.
Hinting at bad condition Of affairs
in the Knickerbocker Trust company.
Attorney General Jackson asserted
that there was in the vaults of the
institution an illegal check for 81 000.-
600. On his order Justice CLARK. in the
Staten Island court, appointed as tenn
porary receivers Otto L. Barnard, pres
ident of the New York Trust company;
| Ernst Thalmann of Ladenburg. Thai
mann K Co., and Henry c. Ide. for
mer governor general of the Philip
pines Justice Clark also issued an in
junction restraining the directors from
touching any papers in the offices of
the company.
SO encouraging view did President
Roosevelt and his cabinet at Washing
ton take of the situation that semi
official announcement was authorized
expressing satisfaction with the steps
taken by the government through Sec
rotary Cortelyou, acting in conjunc
tion with Mr.. Morgan, to bring about
a return to normal financial conditions
in New York.
Another important step which will
materially help out was taken by the
savings banks of the city. At meet
ing of the presidents it was decided
that today all the institutions will take
advantage Of the sixty day clause and
will pay only such an amount to each
| depositor asking for it as will cover
his or her pressing needs. Some banks
will nay $50 down, others will pay $1OO
| down. but all will take advantage OF
the law. so that no run is possible on
! any ~ the sa,-if~s banks