The Marion daily mirror. (Marion, Ohio) 1892-1912, 1907-10-26
CLEARING HOUSE
I TRIES T0'SI[h TIDE.
or FINANCIAL ptsAsvgA ~ iesu.
ING CERTIFICATES.
AN ACTION SELDOM TAKEN.
Six Banks and Trust Companies IN
nrooklyn and Vicinity Suspended
Payment Friday--savinss Banks
Enforce 6o.Day Rule. j

N #
New York. Oct 26.--F'riday was an.
other nerve-racking day. but the. fnan.
cial institutions or New York showed
extraordinary power of resistance to
the pressure put upon them While
several minor institutions were forced
TO close their doors, yet two things
should be said about theni--first. that
the amount involved was not so great
as to exert any marked influence on
the general situation, as these banks
were located In residential quarters
aud did not come In touch With the
larger financial institutions of the
metropolis; second, that there is
every reason to believe that these
banks and trust companies are en-.
tirely solvent and their difficulties will
prove to be only temporary and due
entirely to inability TO secure ready
cash,
In the light OF the general excite
ment the savings banks put into ef-
feet the rule requiring so to CD days
notice for the withdrawal of deposits
aud this will prevent the withdrawal
OF money which would otherwise be
put In safety deposit boxes. The saw
ings banks. ifsthey continued to make
payments, would be obliged to with
draw FUNDS from the national banks
thereby causing an additional strain
Oh the general banking situation.
There was not the slightest hint that
any OF the savings institutions was, in
anything but the soundest condition.
rhe institutions which closed their
iorrs Friday, with the sums due de-
1ositGrs, were The United States Ex-
shangc bank. Harlem, 100000.
International Trust Co., about $780,
700.
The Borough bank. of Brooklyn, s4,-
10000.
The Brooklyn bank, s2.300.OOO.
Williamsburg Trust Co, Brooklyn,
S7.500,000.
The First National Bank of Brook
iyn, $3.500000.
The First National Bank OF Brook
'yn, the. williamsburg Trust Co. and
he International Trust CO. were allied
Institutions. None of these companies
lad any Important business connec-
ions with the larger banks.
Ion the other hand a number of
avorablc features marked the day.
The gruet Company of America and
the Lincoln Trust Co, the two organi-
:ations which have Suffered most from
runs, closed the day with all demands
iaaving been met.
The most favorable incident of the
day was that the stock exchange was
provided with funds ample to meet
its immediate necessities by money
pool headed by J. p. Morgan, which
sent about s15 100000 to the exchange
during the afternoon. The stock mar.
ket had held relatively firm all day.
but whom the pool money was offered
in the loan corner there was an i'm
mediate upturn OF prices and the mar
Set closed strong.
A further encouraging development,
the good effect OF which can scarcely
be overestimated, was the decision to
issue clearing house certificates.
There will be meeting OF the Clear
ing House association to-day for the
purpose OF taking official action for
the issuance OF these certificates. The
immediate effect of this VIII be to en-
able the banks to settle the balances
between themselves with these GER
tlficates and thereby release large
sums OF currency for the regular
needs OF business. The decision TO is
sue clearing house certificates Is like
ly to end any further anxiety IN re-
gard to the supply of currency.
The first issue Of clearing house GER
tliicates was In 1860 and there were
several issues during the war. Other
issues occurred In 1873 and 1884 The
last occasion on which they were
ayailed of was in 1888
The clearing house certificate Is
practically guarantee by all the
banks In the clearing house that the
certificate shall be redeemed at par,
but the clearing house banks are pro.
teoted against loss By the fact that
first class securities are required be-
fore the certificates are issued The
certificates are, used only between
banks In the settlement OF their bal
ance at the clearing house. They do
pnf aIipaar in pnpqva1 cirptflotinn