The Washington herald., 1907-10-22


ency OF clearing house banks.
There was nothing even resembling
run on any Of the banks which the clear
ing house had declared itself ready Il
save One or two of these banks, in fact
were stronger in cash at the close Of bus
mess than at the beginning, having Sc
cured the repayment Of loans to al
amount much greater than the with
drawal of deposits.
In the stock market the restoration o
confidence was manifested by the mos
active and substantial upward movement
Of prices that has been Witnessed at any
time within the past month.
The clearing house made good its dec
laration to assist the clearing hous,
banks in any way that the committee
might consider necessary 1t advanced
100000, giving most of this to the Mer-
camille National. and the balance, prob
ably mob much more than 100000 to the
New Amsterdam The Mercantile had a
debit balance of S,9]3,00O at the clearing
house in the morning. showing heavy
Withdrawals of deposits on Saturday. The
debit balance of the National Bank OF
North America was $50 90; of the Me
chanics and Traders; $4,000, and of the
New Amsterdam National, S2o9VJ0
No Aid Is Needed.
The Mechanics and Traders which
has at no time been criticised and has
maintained its reserve well above the
legal requirements. was not thought
Of as "a bank needing assistance Its
debit. balance was due, it was said
merely to the fact thaI the Thomases
were hold-over members of the board
not to any suspicion that they had
operated in the affairs of the bank.
The National Bank of North America
started the day under the new regime
with S1,4O0,000 in cash. Large heaps
of gold were piled up on the counter
i'm full view of any depositors who
entered The bank 1t paid its balance
at the clearing house without assist
ance from the clearing house banks
and collected in the course of the day
some S1.750,000 by the calling of loans.
Energetic calling of loans was sug-
gested 10 the bank as preferable 10
reliance on the clearing house for
funds.
Seek to Repay Loans.
The discharged directors. the
Icinzes. the Thomases, and Charles ".
Morse, were formally eliminated from
the banking institutions in accordance
with the arrangement made in pTeced-
ing days There was plenty Of EVIL
dence that they were doing their best
to make good their promise to pay
off loans in the Morse-Thomas-HeIn
string Of banks.
Consolidated Steamship bonds were
slaughtered on the curb. United Cop
per stock went at whatever price could
De secured and there We're extensive
and costly bargain sales of American
Ice securities. Davis Daily Copper. Ne
Vada Utah Copper, and others OF the
securities promoted by the syndicate.
Twenty-three hundred shares Of Amer
lean Ice securities, which sold above
par last January, went between i and
%, Consolidated Steamship bonds to the
par value Of S1161,o00 were sold at prices
ranging between 122z and Is. United Cop
per. 100 shares OF it, was disposed of
at prices ranging between "a and 9ia.
as comfared with price of 90 only one
week before There was no bid, so far
as reported, for Western Ice and Morn
ing Telegraph bonds. the Thomas special
ties of 1907. To all appearances, trading
in them was as dead as in General Car
riage, the notorious speciality which they
We're interested IN several years ago.
Heavy Drop in Davis DAILY.
The Thomases were. however, credited
with sales of Davis Daily Copper This
was a stock brought out by the Heinzes
at the time they made their alliance with
the ThOmases and Mr.. Morse in the
Mercantile. The Heinzes persuaded the
Thomases that they were unearthing an
other Minnie Healy, and the Thomases
hastened to purchase as much of 1t as
possible at prices around 90 To-day
there was sold 4500 shares of It at prices
ranging between 31-2 and AIS.
In return for the tip on Davis DAILY.
Il was said, the ThOmases tipped the
Heinzes of TO Western Ice. and blocks
of that stock are accordingly supposed
TO be IN the collection of the Heinzes' in
dIgesuble securities.
Twenty-Five banks. il was learned. CO.
operated in extending assistance TO the
banks needing it. Their advances were
voluntary and were separate from all
clearinghouse transactions
The clearinghouse committee met early
in the morning, while the clearances
were in progress, and an extended con-
ference was held after the close of bank
Ing hours. Further meetings viii be
held daily until the situation is entirely
clarified
Some Of the loans of the Morse
Thomas II lfuZa iufaracfc in No.,
tile National We're paid to-day. More
It is expected. win be paid tomorrow.
when collections viii be made on the
securities sold to-day.
No estimate of the aggregate amount
Of these loans in the various banks was
given out by the clearinghouse com
mittee to-day, but il was reported that
the Heinze loans alone in the Mercantile
aggregated 100000 An estimate of the
Morse loans it was said, was impossible.
for the reason that they are scattered
all over the country, with bank stocks
and other securities as collateral
State Head of Banks Quits.
Albany, Oct I.-Luther ". Mott of
Oswego. who was recently appointed
State superintendent of banks by Gov.
Hughes. resigned to-day. giving fI-health
as his reason.
It is understood, however. that Mr.
Mott had recently been looking into the
banking situation in New York CITY and
became greatly discouraged by the ont
look It is understood that in his pres
ent state of health he regarded the worI,
involved as too arduous for him to un-
dertake.