Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1907-11-12
CONDITIONS CLEARING.
Review Of the Situation as Seen In
New York.

Review Of the Situation as Seen In
e. New York.
New York, November 10-The most
eventful week in the financial history
Of the present generation came to a
much clearer than a week before, but
with some clouds still hanging over
the financial horizon. The previous
week had closed with the disquieting
announcement that the New York
bank reserves had lost $30,000,000 in
cash in spite of deposits by the gov
eminent during the week Of nearly
equal sum representing a net cash loss
Of $60,000,000.
The bank statement Of yesterday
changes this situation. While IL shows
serves of s13,085,800 more than two
thirds of this decrease Is due to the
reserve requirements caused by In
crease in deposits because Of the tax
ing over Of loans from the trust COM
panies by the banks. Moreover, the
actual cash loss of $4,313.000 is due
to the system Of averaging accounts
for the entire week. including several
days before the arrival Of the new
gold. Unless demands from the coun-
try are very heavy next week the ar.
ElNdl VI 6Oiu uioAO thoh
Offset the loss Of cash last week and
make a creditable showing for reserves
on Saturday next.
Many Sessions Held.
The week began on Monday with a
feeling Of grave doubt as to the fu-
ture of the two trust companies which
had been subjected to severe runs. The
possibility that they might go down
and drag with them much Of the finan-
cial structure which still stood erect
kept Mr. Morgan, the trust company
presidents, and other financial leaders
in almost continuous session until late
Sunday morning and again on We'd
nesday until 3 o'clock in the morning.
When 1t was finally announced early on
Wednesday forenoon by President
King, Of the Union 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 depositing
hands Of the committee the situation
cleared, large degree Of confidence
returned and the stock market ad-
vanced generally from two to three
points. 1t was felt that the danger Of
a general crash in New York was over
and that the surging waves of the
storm would gradually subside.
Gold at Critical Moment.
The restoration Of comparative Sc
curity in New York was obtained on
demands upon money markets Of Eu-
rope which created a tension not be-
fore experienced since the Boer war.
Indeed the Bank Of England in order
to protect resources raised the dis
count on Thursday to per cent
rate which had not before been fixed
since 1873. The Bank Of France rails
ed its rate for discounts to per cent,
the Bank Of Belgium to 6 per cent, and
the Bank Of Germany, at a special
meeting called on Friday fixed the un-
usual rate Of u per cent. 1t Is not
surprising that these precautions were
taken to protect European bank re-
serves in view Of the fact that nearly
$50, 100000 in gold was engaged by
American banking institutions within
less than two weeks. The first arrival
Of the yellow metal came at the crit
ical moment when the Trust company
situation was uncertain on Tuesday.
Then came smaller consignments on
Wednesday and on Friday the delivery
Of $10,361, 900 by the Lusitania.
The demand for gold from Europe
came at q favorable time in some res
poets because Of the outward move
ment Of American products Of which
the leading ones are cotton and wheat.
The fact that European bankers de-
clined during the summer to accept
American finance bills because they al
ready scented the storm, made the de-
mand upon them more sudden than
would have been the case II American
bankers had found 1t necessary at the
present time to buy cotton and grain
bills to cover previous borrowings.
Under the actual conditions Europe
must pay substantially in gold for the
balance Of exported products which Is
being created In favor Of this country
by every bale Of cotton and carload Of
wheat placed on shipboard for export.
The cotton movement has been a good
deal congested by the absence of small
bills in the southern banks but every
thing possible is being done by the
secretary Of the treasury and New
York bankers to aid the southern
banks in meeting the situation. The
same is true in regard to the move
ment of grain which has thus far been
more easily handled at Duluth and
other northwestern points with the aid
Of western banks than has the cotton
movement.
New Workers are sending forward to
the west and south all the currency
they can spare, especially to those
points where in their judgment 1t Is
most needed. The premium on cur
rency which rose as high as 8 per. cent
during the week, though It closed
somewhat lower, has had curious eff
feet upon exchange and the price Of
United States bonds. It has disturbed
the calculations based upon gold pari-
ties Of exchange and has made 1t pos
sible to pay a higher price to get gold
and to acquire bonds as a basis for
circulation than II no such premium
prevailed.
One Of the favorable features Of the
situation thus far Is the relatively
small number Of failures Of national
banks as compared with the record OF
1898. At that time 7S national banks
suspended in the single month Of July
and SO additional in June and August,
while during the first eight months Of
1899 the number of suspensions or
state and private banks was four hun
dred and fifteen. In the present crisis
the number Of national bank suspen-
sions reported does not exceed dozen
and some of these will reopen.
The new week opens with the bank
ing situation in New York cleared up
so far as any danger Of further fall
ures or suspensions is concerned with
the banking reserves comparatively in
tact, and with more than $25,000,0 900 on
the ocean to strengthen them during
the coming week.
State Superintendent Of Education
Martin has announced his candidacy
for the United States senate next sum-
mer to succeed Senator A. G. Latimer.