Los Angeles herald., 1907-11-21
PATIENCE IS ONE
THING NEEDED NOW
HoARDERs OF CASH BRANDED
ENEMIES OF SOCIETY
Patriotic Duty Demands Spirit OF
HelpfuIness, Net conceaiment of
Facts, for Rapid Recovery
of Country

Confidence is reviving gradually. Distrust IS
less acute than at the time of the runs on
financial institutions says Henry Clews ufi-
der date Of November 16, although the shock
then administered is travelling across the con-
tinent and starting the forces of readJustment
in general business with unexpected severity.
Our chief trouble has been the demoralized
condition Of credit. The local banks are
handling the crisis with admirable skill and
spirit but still crippled by the universal
loss of confidence; and because of tempo
rary breakdown in the credit system are un-
able to do their full share OF the country's
business. 1t is estimated that fully 30 per
cent of the transactions in this country are
settled by check or the transfer and balancing
of credits yet in many instances the banks
are now obliged to refuse credit on checks for
deposit, the result being much heavier de-
mand than usual for currency in the making
of payments.
Added to this exceptional demand is the
tendency TO hoard cash, not only by individuals
Lut by of the interior banks. Nothing
could be harmful at such time than
boarding. This tendency. IT Is true, has been
somewhat counteracted by the premium of 2
to 4 per cent or currency, but the injury is
serious nevertheless The hoarder should be re-
sarded as enemy of society and shamed out
of his folly.
There are numberless institutions all over
the country where the depositors 5 money IS
perfectly safe, willie in stockings and other
hiding places 1t is unsafe Many of our state
banks have envable records for safety ana
soundness. Our national banks are einlnenty
safe; so, too, savings banks and CON
servatively managed trust companies People
must cease their silly and injurious boarding,
and, IL disposed to invest at this time, should
deposit their funds in banking institutions of
well established reputation. managed by men
of high character and ability and free from
all undesirable connections. There are plenty
of such institutions, not few Of which are
prohting largely by this shifting of deposits
rom weak to strong concerns, but they are not
;mong the class that seeks public notorety.
Conservatism Is Needed
Remaining six weeks of the year will re-
auire much patience and skllful plotting by
hose who contro, the financial situation. The
usual maturities which occur about the close
of the wear will have 10 be provided for; 81
will the $50 10000 of dividend and interest
Payments at that time. These probably will
lie more largely applied to the payment OF
debts than to Investments in new securities.
Moreover. there are large syndicate payments
soon coming due, and during 1908 at least SlOO.
coo 900 or lhort-term notes mature. Many OF
these obligations can, of course, be extended
l. found necessary. Altogether, at best the
situation is one that calls for much conserva-
tsm. II Is a good time to be satisfied win
retaining what one has rather than trying to
sain more just through hazardous ven
lures.
Wall street has passed through the worst oi
the cyclone badly crippled It is true, but still
sble to weather tho clearing squalls and ready
TO continue the voyage under close reef OF
sails unit fair weather again comes into
sight. Th next two weeks should bring much
better bank statements Interior banks have
drawn heavily or New York, but this ought
"a be larv, ly offset by big gold Imports that
must shortly give substantial relief. No more
patriotic dlty car now be undertaken by any
citizen than to do his best to restore confidence
Nv rational, means not by timid concealment
OF the facts but by spirit OF helpfulness, by
consideration and patience, by quiet recogns-
tion of the situation and by calm acceptance
Of the inevitable PROCESS OF readjustment which
hes already set in and must work out its own
solution