The Globe-republican., 1907-10-24
Heavy Withdrawals from Mercan-
tile and North American Banks
in New York.
WALL STREET ATMOSPHERE CLEARED
Heinze, Morse and Thomas Interests
Eliminated From Gle ring House
Banks and Better Feeling Prevails
Stocks we're Stronger and Higher as
Result-ReIief Fund Pledged.

NEW YORK, OcC. GG.-lne more Ia
vorable sentiment in business and
banking circles resultant from Sun
days changes in various bank man
agements and the promises Of support
made by the CLEARING house associa-
tion received something of setback
Monday wnen it became known that
the debit balance Of the Mercantile
National bank at the clearing house
was $1,90O,000.
The debit balance of tho National
Bank of North America was $S50,0O0.
These figures indicated that heavy
Withdrawals from the two banks were
being made, anl the totals were :
ferred to by one member of the clear
ing house as Unexpectedly large and
disconcerting
1t was announced in short time,
however, that the clearing house asso-
citation would extend assistance to the
Mercantile and National Bank of
North America.
Seth M. Milliken, the newly elected
president of the Mercantile National
bank, said that counting out ..e
Heinze-Morse loans, the assets of the
bank are $1.40 for every dollar of lia-
bility and that the loans in question
are Of value.
Stocks Monday opened strong and
higher, all the market leaders parti =
ipating in the rise.
Sundays meeting of bank presi-
dents succeeded in finally eliminating
the Heinze, Morse and Thomas inter-
ests on certain of the clearing house
banks. Besides choosing new officers
for the banks in questl, n, and an
nouncing that each was in a solvent
condition, fund Of $10,0O0000 was
pledged by a score of individual banks
to extend aid to those banks and rem
der such assistance to meet their de-
posits as the clearing house commit
tee may think necessary.
The deposits Of the banks repre-
sented at the Sunday conference
amounted to $1,250,00O,000. The men,
Is in number, every one practical
banker, decided upon the measures
for eliminating the interests that have
been under criticism, which measures
later in the day were carried out.
The methods that have now been
eliminated from the local banking sit
uation, it is stated, are development
of the last decade. These consist of
the buying of bank, then putting up
the stock representing that control as
collateral for funds to buy control of
another bank, and continue the pro-
cess with banks and trust companies
so that the result is pyramid con-
trolling "chains" of financial institu-
tions and their deposits The crisis
it is declared, was a'serious one, but
the cure extended is expected to be
complete
Manager Shearer of the clearing
house said Monday that that institu-
tion had the situation under control,
that all the undesirable elements had
been eliminated, and that from this
would begin new era in banking in
New York. 1t was officially denied
that 1t would be necessary to issue
clearing house certificates in order to
secure support for the banks which
have been under criticism.
United copper, A. Heinze security,
advanced two points Monday from
71s to 91s.
Seth M. Milliken, the new president
Of the Mercantile National bank, ques-
toned as to the loans of f, A. Heinze
and Charles w. Morse, said it was ex-
pected tha. they pould repay them as
soon as they were able"