The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1907-10-25

a Legitimate start. which shares
were h~ypothecated for the purchase
OF other shares. until he had the
majority Ga his name. More recent
examples Of the practical workings
Of the sam. system are presented
in the Hartman operations IN secur.
ing control Of new lines Of railroad
by using the securities % other
;ines as payment for the purchase.
ThS. with the actual s,curiues Of
an initial line OF railroad as coiiat
eral. one road after another could
be brought under control at pleasure
without the addition Of a single
dollar Of new capital
Certain individuals in New York
spec1aut individuals. as distin.
guished from conservative bank.
ers-applled the same system 10 the
financial institutions with which they
have been connected. one banking
Institution being established. they
have not hesitated TO use the col.
lateral Of that institution 30 estab-
fish another and another. until they
had a chain Of banks established
practically upon the capital OF one
but receiving deposits as separate
institutions according to the prefer
.nce Of the deposition. 1t VIII be
seen that under this system depos-
its far IN excess Of the
Of the chain OF banks ran but te
the natural result. During fair
weather the sailing was swift and
smooth. but there was an element
OF such danger In the application Of
the system to banking that the legi.
innate and conservative bankers Of
New York some time since quietly but
with determination set on foot a
movement to rid the business OF
these speculative individuals.
Speculative baners were given to
understand plainly that they must
cease TO jeopardize the good name
OF the honest banking institutions
OF the city. and the only certain
way in which this could be done was
by the personal withdrawal of the
/ speculative officers from every in.
, VJution against which suspicion
a. might be lodged. The resignation
! OF Helnze a few days ago from on.
| OF the New York banks is an IL
a lustration OF the application Of thi'
I rule. The resignation OF Heinze was
e followed by the resignation OF Char
e les T. Barney OF the Knickerbock
er Trust company. which precipi
These designations are simply II
line with the determination OF thu
o great majority of the solid BANKING
y institutions OF New York to rid banl
:. ing Of an element that may at an.
time discredit The whole business
That It is nothing more than thi
d Is proven by the fact that the New
York clearing house has resolved
s to protect every legitimate interes
and to see that no banking hous'
which does banking TO the exctu
e sion OF all manner OF speculation
shall suffer.
Nothing but good a finally CONF
: from the elimination from a bust
ness requiring the strictest con
~servatism OF such men as are wi
ling 10 weaken the institutions will
which they are connected, for TIL
hope OF inordlnate gain. Specula
ton and banking have nothing II
common, and the New York bankers
{ are determined that the two shall
1 not be operated together II they cal
! prevent It, and II is very apparent
5 that they are doing good work II
forcing every banking institution II
!. the metropolis upon a firm founda
ton.
As a matter OF fact, the whole III
mutt is the result OF some much
needed New York financial house
cleaning, but the influences upon the
country will he FOR good. II viii