The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1907-11-14
STATE AUDITOR
ADDRESSES BANKS
ANNOUNCES MARKED IMPROVE.
MENT IN SITUATION AND PRE-
DIETS SPEEDY RECOVERY.
c EARRING HOUSE SC ZIP
Recognized as important Factor in Re.
iief--4oo State Banks Of Illinois
Evidence Solvency and
Strength.


The First Bank and Trust Com
ipany Of this city received yesterday q
very interesting and most unusual
communication from the Auditor cf
Public Accounts at Springfield under
whose supervision are all state bank
ing Institutions OF Illinois, The audi
TORS letter is apparently a general
one addressed to all state banks. II
bpeathes a spirit of optimism colorel
with just the proper conservatism AZ.
manded by the situation and tacitiy
sets the stamp Of approval upon the
clearing house certificate system
under which the Cairo banks are now
The letter is dated from the audi
tors Office, November u, and follows
ia its entirety
Responding TO requests from re
sponsible sources and after earnest
consideration Of the natter the de-
paitment has concluded to address a
few lines on the financial situation
to the banks under its supervision
The financial furry, originating In
Wall Street about three weeks ago,
naturally spread over the entire coun.
try Whatever may have been the
cause contrary to 1895 crops and
prices are good, labor is employed,
manufactures are busy, values are
stable and the country on the whole
was never more prosperous; however
It must be conceded that confidence
has suddenly received a shock and
that the past week has been one Of
apprehension in banking circles.
TO prevent depletion Of cash re-
sources the New York banks adopted
the plan oil issuing clearing house
certificates. Banks Of the western
cities We're forced to follow and saw
ings banks promptly took advantage
II the thirty and sixty days notice
of withdrawal This has brought a
temporary depression in business be
cause there appears 10 be short
age Of currency for moving crops ami
for carrying on the legitimate bust
ness transactions Of the country
~ careful analysis Of the situation
on the opening days Of this wesk
develops a marked imrogement and
indicates speedy recovery. The money
supply has been Augmented first BIZ
direct relief from the secretary Of tho
treasury; second by increased cir
Of national banks third, BY
the arrival Of approximately City mil.
lions in gold from Europe. Realizing
that ninety per cent CT the country's
credit, the public Is taking kindly to
the check system In New York, the
storm center. excitement has subsid-
ed and conditions are fast growing
normal With a few exceptions the
banks OF the country haXe gweatbere,li
the storm successfully, eyideneing
their solvencY and strength The
auditor Is pleased to. report that from
the. four huAdred banks under his SUI
neryision not "A single note Of distress
has been heard
While all 'of the above warrants
optimism. this is, nevertheless a.
period for the exercise Of calm jude
ment and patriotic duty not only on
the part Of the officers and stock.
holders of the bank but its patrons
as well The continuation of restor
g j IL IF
be paramount. Banks should take
heir customers into their confidence,
assuring them of the safety Of the
While actnal needs for
'unds must be met, the cash re-
sources should be reasonably hus-
banded and business men induced 20
install and advocate the checking
system. To avoid general business .
embarrassment notes maturing
against responsible parties should be /
A thorough understanding betweta /
he country banker and the city cor
respondent is essential: no request :
or currency Should be made by the
orrner exeer for real needs. -alld TIE
after must not ignore an urgent aud
legitimate demand FROM a country (
,anker in distress.
4 trust the situation with you is 4
and that your patrons (
viii stand by YOU In averting an un
warranted disturbance Thereby con
CRYING the credu Of cur. state aal
alton.
Yours respectfully.
- :. CUILOUGH"