The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-11-11
.EvENTFUL WEEK
FOR FIhANCIERS
Seven Days Ago the Outcome
of the Monetary Crisis Was
Very Much in Doubt.
DANGER OVER WEDNESDAY
FEW FAILURES AS COMPARED
WITH 1898.
DANGER OVER WEDNESDAY

New York, Nov 10-The most
eventful week in the financial history
of the present generation came to a
close on Saturday with conditions much
clearer than a week before, but with
some clouds still hanging over the fl
nancial horizon.
The previous week had closed with
the disqnieting announcement that the
New York bank reserves had lost s2O,-
900, 900 i'm cash i'm spite of deposits by
the government during the week OF
nearly an equal sum, representing a
net loss of $50, 600, coo. The bank state
ment of yesterday changed this sltua-
ton. While it shows Il nominal de-
crease i'm required reserves or SlSUeo'-
500, more than two-thirds of this de-
crease is due to the reserve require
ments caused by increase in deposits
because of the taking over OF loans
from the trust company by the banks.
Moreover the actual cash loss OF S4,-
$4,000 is due to the system of averag-
ing accounts for the entire week, IN
Guiding several days before the arrival
of the new gold. Unless demands from
the country are very heavy next week
the arrival of additional gold VIII
more than offset the loss of cash last
week and make a creditable showing
for reserve on Taturday night
Week Began in Gloom.
The week began on Monday with a
feeling of grave doubt as to the flu
ture of the two trust companies which
had been subjected to severe runs. The
possibility that they might go down
and drag with them such financial
structures which still stood erect kept
Mr.. Morgan, the trust companies pres
idents and other financial leaders in
almost continuous suspense until last
Sunday morning and again on Wednes-
day until O'Clock in the morning.
When it was finally announced early
on Wednesday forenoon by resident
King of the Lincoln Trust company.
acting as chairman of the committee
of trust company presidents, that the
management of the Trust Company of
America and the Lincoln Trust COM
pany were to receive all the assistance
they required in return for depositinS
the ma jority of their stock in the banks
of the committee, the situation cleared,
confidence returned and the stock mar
ket advanced generally from two to
three points.
Danger Over Wednesday.
1t was felt that the danger of a gen.
eral crash in New York was over and
that the waves of the storm would
gradually Subside. The restoration of
comparative security in New York was
obtained only by demands on the mar
kets of Europe. which created a ten
sion not before experienced since the
Boer war. Indeed. the Bank of Eng
land, in order to protect its gold re-
sources. raised its discounts on Thurs
day to Z per cent, a rate which had not
before been fixed since 1873. The Bank
of France raised its rate for discounts
10 4 per cent. the Bank of Belgium TO
6 per cent. and the Bank of Germany.
at q special meeting called on Friday.
fixed the unusual rate of ~ per cent.
It is not surprising that these precau-
tons were taken to protect European
bank reserves i'm view of the fact that
nearly $50, 600 900 i'm gold was engaged
nv American banking institutions with
in less than two weeks The first ar
rival of the yellow metal came at the
critical moment when the trust COM
many situation was uncertain on Tues
dav. Then came smaller consignments
on Wednesday and on Friday the deliv-
cry of So. 36l 900 by the Lusitania. The
demand for gold from Europe came at
a favorable time in some respects, for
the outward movement Of American
products. of which the leading ones are
cotton and wheat.
Cotton Movement congested.
The cotton movement has been n
great deal congested by the absence of
small bills in the southern banks, but
everything possible is being done by
the secretary of the treasury and New
Work. bankers TO aid the southern
hanks IN meeting the situation. The
same is true in regard to the move
nent of grain, which has thus. far been
more easily handled at Duluth and other
northwest points. with the aid of west
ern hanks, than has the cotton move
ment.
New York bankers are sending for
ward to the west and south all the
currency they can spare, especially to
those points wherein the money is most
needed. The premium on currency
which rose as high as per cent dur
ing the week, though it closed some
what lower, has had curious erect
Continued on Page 2.