Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1907-10-28
CRISIS PASSED.
n, Y, Bank Situation Be-
coming Normal.
Millions Of Gold From Europe
Help Restore Confidence.
Clearing House Certificates Put
Millions More In Circulation.

Clearing House CeTI'''eates "
Millions More In Circulation.
Eew York. oct 26-The Tnite'l states
treasury department. the Bankers AS
sociation and the Clearing House COM
mittec. working in harmony with the
great commercial institutions OF IN"
CITY AMI country, are confident tonight
that the turmoil of the week had spent
its force with the close of bus .ncss TO-
day Confidence is being restored me
bank statement for the week, conSld'r-
ing everything, did not produce shock
Growing encoura cement was the domi-
nant feature Of the situa ton. All tnr
great financial institutions OF the cIt%
were intact after having met IN full the
demands of the past WceE-a SlGhdi
demonstration of resisting power that
speaks well for the rcsponslbl2 neat;
of the banks.
Clearing House Paper.
Purely as Il precautionary m"asu1
the Clearing House Association voted
to issue clearing house loan certificates
for the use of the banks themselves III
settling the daily balances at til" clear
ing house These certificates Will not
go into general circulation, hut their
use will enable the banks t" keep IN |
circulation for the needs of general
business large amounts of currency |
which otherwise would pc required IN
the settlement of the daily ci"arin"
house DalanceS. Plans wer" formulate"
to extend the benefits of tn" clearing
house certificates to the trust com
panicS as we'll as to the banks. when
are at present members of the Clear
ing House Association. The amount
of the issue will depend on clrcum-
stances.
Another important and satisfactory
feature of tOday'S news was me an
nouncement by the National CITY Bank
that it had engaged $5.0oo.o'" in gold tor
inport. 1t is believed by bankers and
exchange brokers' that this engagement
is the beginning of what will probably
he a continuous movement oil gold 10
New York abroad.
The exchange market * very favor
able for the importation Of gold and
it IS believed that no difficulty Will he
met with in securing the metal from
Europe so far as it may hc needed.
Right here it is instructive to note
standard law the accumulation of gold
i'm the treasury. including that held
against gold certificates. now stands
at so.s. coo, 600 which Is the largest gold
stock in the world.
It is also Instructive to read that
the clearing house banks of New York
CITY alone showed today specie hold
inge of s1?64oG. 900. of which nearly all
was in gold. and legal tender holdings
of s,ScH370o. The reserve fund on
hand stood at s254 1n9 700. which was
only slao3 900 below the legal require
mcnt Of - per cent.
If calmnesS characterzeS the affairs
of the coming week, as leading fnan-
CicrS hope it will. tn" situation VIII
RAPIDLY assume the normal. ON this
point J. T. Morgan and james Stillnan
spoke today. Said the former: Il can
not strongly cmI haSIZ" the ilnr'rtant e
of the people realizing that tn" great
est injury that can be don" t" the pres
cnt situation is the th"ughtlesS with
drawal of funds from banks aud trust
companies and then boarding the cash
in safe deposit vaults or elsewhere. thu.;
withdrawing the supply of capital al
WAYS needed in such emergencies as
that with which we have been con-
fronted during the past week
Soundness Of Banks.
Mr.. Stillman president Of the Nation
al ,Itv Bank who. next to Mr. Morgan.
did more to bring about Il solution ot
the financial difficulties than any other
nian. said:
The wise and heroic action of the
secretary of the treasury. and the SPLEEN
did nfYprt oF MIR Morgan with the as
Sistancc Of the Clearing House. hay,
demonstrated the sound financial conGI'
ton of the clearing house banks Of tn
city. Now. however. in order To facili-
tate the shipments of cotton. grain.
tobacco and other products and t'
ticilitate the imports OF gold. the asS"'
riated banks have wisely decided e
combine their credit by the isS'lanc" %
clearing house certificates"
Secretary of the Treasury ,'ortelyC'
caused the following statement to ~,
given out tonight:
"On the occasion Of = call on him thi:
morning Ivy representatives of The NcN
York Clearing House, Secretary Cortcl
YOU asked that they convey To thu
Clearing House his deep appreciation!
on behalf of the government of thu
courageous and hiEh-minded manner il
which they had upheld the interest:
not only Of the people of this city. hu
in sense IF the people of the Who'll
country.
Later Secretary Cortclyou called upol
]. T. Morgan and expressed in Simila
terms his appreciation Of the service
rendered by Mr.. Morgan and all VII
had co-operated with him in meeting
the emergency