The semi-weekly messenger., 1907-10-29

New York. October eS.-In response
20 a request or the Associated Press
as to his view OF the present situation
J. Pierpont Morgan said today:
las 1 have already said. cannot
too strongly emphasize the Importance
of the people realizing that the great
est injury that can be done TO the
present situation Is the throughress
withdrawal OF funds from banks and
trust companies and then boarding
the cash in safe deposit vaults or else
where. thus Withdrawing the supply OF
capital always needed I'm such emer-
gencies as that with which we have
been confronted during the past
week"
James StilIman, president of the
National City Bank who next To- Mr..
Morgan, has done more to bring about
q solution OF the financial difficulties
| in New York than any other man,
said:
THE wise and heroic action OF the
| secretary OF the treasury and the
| splendid efforts OF Mr.. Morgan. with
! the assistance OF the clearing house.
have demonstrated the sound finan-
| ciai conditions OF the clearing house
| banks of this city. Now, however, In
| order TO facilitate the shipments or
| cotton, grain, tobacco and other pro-
|
| gold. the associated banks have wise
| ly decided to combine their credit by
| the issuance of clearing house cert-
fcatcs and thus prevent the paralyZing
of a very large part of the business OF
the country.
! CaImness and growing encourage
| ment were the dominant features or
| the financial situation when the great
banking institutions closed their week
| today, with all the great financial In
| stitutions Of the city intact after haN-
ing met the unprecedented demands
of the past week. With this signal
| demonstration OF the resistance pow :
| ers of the banks came the Adoption OF
| new and important measures 10 pre-
| vent a recurrence OF acute strain. Al
| though the stock exchange and other
sensitive points were free from eN-
trerne agitation, yet there were heavy
Withdrawals of cash from severa'
banks and trust companies these
withdrawals being for the most part
ty the smaller depositors. All the In
stitutions affected continued to pay out
| on demand up to noon, the usual hour
of closing on Saturday.
First Of importance in the remecla
measures was that of the clearlnp
house association in voting to issue
clearing house loan certificates for the
use OF the banks Themselves In set
, | fling their daily balances at the clear
] | ing house. .-,
| benefts Of the clearing house cert
vcates 70 the trust companies as vel
! as TO the banks which are at preseh
? members Of the clearing house asSo
= | citation a.,
E Another extremely important Tea
! turn OF today's news WAS the an an
nouncement by the Naconai Se ae,
g Bank that II had engaged s5:ooo,Vo
e for import II Is believed py ~.
: ond exchange brokers that this en-
rayement Is the bePining of what WI
r nrobabIv ne continuous movemeh
n nf cold 10 New York from ABROAD
Tho exchange market Is very taVora
bic for the importation ol gold ai.h
is believed that no dfncnty wiz
met in securing the meta from r. r.
rone co far the pressure "hicn fuiEh
yoipbt logically be anticipated In We
u ~ tho Drnvious demand for currehc'
Tbrs far there have been no app
cations bv the trrtst companies l'
r admission TO the clearing house an
4 the exact conditions on which Ih'
70 might he admitted Rave NOT Ds'
e,ed while the action taken today
II nnt immediately effective-sO far
L. :, relates TO trust comranic@-it snow
a ,v,Ilippness OF the clearing houi
ho,te IN co-operate with trust cor
NAMES. which greatly relieves the -
u uation and removes the dahgsI "ns
n which some have fearen-'a .,,,
Il individual trust COMPANY - -
iaft 10 shift for itself while the ass
&c ciated banks I'm the clearing ho"
ae stood firmly togetheT- ,,, r,htca,
nd Chicago. October 2I..e .nnte
en- Clearing House Association .oh,S -,
n, announced through cor nina non
%. I.decotee 1t was also resolved IN
mi Cb;ca.o Savings banks should reani
~ trorn their depositors the time nou.
,rovided for in connection WIN