Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-10-22
TWO MILLIONS
FOR SHAKY
BANKS
SITUATION SHOWS
SIGNS OF IMPROVEMENT
Action of Clearing House in
Helping Out Distressed In
StitutIons Brings Hope to De-
Sponde0t in Wall Street,

lBA Morning journal special Ieared NtreI
New York oct 21.-The recent
tension uf tHe banking community was
today considerably relieved aud the
day passed with no adverse deNelop-l
mcuts OF serious character. but with
much that WAS rea@suriug Al the
same time there was evidence that
some OF THE banks most affected bN
recent events were still in need of as-
sistauce but the promptness with
which the clearing house accorded II
did much ga allay further alarm. TO
general Improvement was reflected +tn
the huoyauCN of the stock market and
the steady advance in prices from pre-
Nious low levels ON the other hand,
the conservative element deferred
too optimistic view until the relief
given bv the clearing house had com
tInucd for several days and had per-
manently rc-cstahlishcd the stability
OF some of the weaker institutions.
notably to the Mercantile National
bank and the New Amsterdam Ma
tiunal bank
The clearing house was called upon
to meet debit balances of"the Mercan-
tile and the New Amsterdam banks to
the extent Of upwards of S2,a0d,o0t,
of which the Mercantile owed about
.S1.g0o.000 and the New Amsterdam
e.
National Bank of North America
amounted To SS50.00o. while there
was said to have been some discus
sion between the clearing houses ana
the officials Of the latter bank, as
to the necessity of giving II any sup
port. IL was not found necessary to
do so. and william "a. Havcmcyer the
nov president of the institution, de-
clatpd that the Bank of North Amer
ica hHd mot asked one dollar of aid
from the clearing housc.
"Thc siluatiun,' Mr.. HaNemcNer
sam. "is really far ttter than Was eN-
pectcd So far only about &lho,0o0
has been Withdrawn When the bank
opened this morning we had "a million
dollars on hand :, pay all corners, pu'
tutat % aniail purA fl ~ uae.h
The facts ~ tine clearing house
regards the siturlion as sim serious
was shown by the remark by the
member uf the committee that the
Mercantile bank debit balance was un-
cNpectedly large and discoHcorting
The committee remained In session
the greater part of the day discussing
% gcnorul plan of policy with regard
.tp assisting such banks az might need
.hclu After the committee had adj
iuurued for the day James T. Wood
ward. president of the Hanover Ma
tional bank. and chairman of the
committee. said that conditions were
improving and that the committee telt
equal 20 meeting any emergency that
might arise tomorrow. william Sher-
rer manager of the clearing house
stated that the situation WAS under
control. that come of the more aWk-
ward features had been eliminated,
and that from this time there would
begin "A new era in New York bank
ing Mr. Sherrer said also that the
clearing house committee would carry
out the policy announced yesterday OF
assisting the weaker banks 10 dis
charge their obligations. The COM
mittee. n WAS added, would meet
every morning 10 pass upon the coli
lateral offered In settling debit bal
ances.
Al a meeting late today Of the d.
rectors Of the Consolidated National
bank. William G. Allison was elected
president in place OF Orlando r.
Thomas. resigned, as was decided ~
an informal meeting Of the directors
yesterday.