The Montgomery advertiser., 1907-11-07
AGREEMENT IS REACHED rust Companies to De- posit Stock. AID WILL NOW BE GIVEN Gold Imports Increased and Stock
 Market Rises. strensth of the stock Market was the Reaex of Improved Feeling
 Throushout the Financial
 Community.

| 1IN0W 1OIhe 1NOV.' 0.--1ue general COIL ditions of the financial situation were favorable today. The runs on the trust companies had practically ceased under the encouraging influence of the sup port of the trust company cofnmittee:
 gold engagements were further in- creased, and the stock market rose
 buoyantiy in recognition of these con1 ditions. The announcement by Mir. King, President of the Union Trust Com
 pany, early in the morning that an agreement had at last been reached by
 which the Trust Company of America
 and the Lincoln Trust Company were
 to deposit their stock in the hands of
 a committee of trust company presi- dents, and in consideration of this were
 t9 receive all the support required. fin-
 ally cleared the air in regard to the trust company situation.
 Grave appreh ension existed as to the
 termination of the conference at Mir.
 Morgan's house at o'clock this morn ing that an agreement in regard to the two trust companies would not be
 reached and that they might be sub
 tected to a run too strong for their im-
 paired resources. Now that this dan ger is removed it is believed that the situation will gradually simmer down
 with the continuous arrival of gold
 until the strngency will be changed
 into the plethora of reserve money in banks which usually follows a crisis.
 sAdditiunal. gold engagements were announced today of s1.00o.o00 on ac- count of Lazard Ffere and $500.a00 for Montreal. This brings up the total gold engagements for America on the recent movement to $s7,50o.o00. which
 would afford the amount required for
 legal reserve against deposits of $780, 900. .000. The gold which arrived yes-
 terday was deposited today. and that by the Lusltania will soon be in the
 vaults of the banks While there is stiIi some apprehen- sion regarding the possible eft6rt of the Bank of England to check the out How of gold from London by raising
 it's discount rate on Thursday. there IS e strong feeling among conservative l financiefs here that the directors of the
 Bank of England will very reluctantly fix a rate of discount which has not
 been touched since 1873. It might
 have been found necessary to overcome
 this reluctance if the Bank of France
 had not so generously dlpped into its
 immense reserves. under the enlight-
 ened policy of Governor Pallain by the purchase of sterling bills to the amount of 3,000.000 pounds to relieve the Lon- don market.
 The strength of the stock market
 was the reflex of improved feeling throughout the financial community. It
 10 believed that the stock market has pretty we'll discounted the worst and that prices are not likely to go much
 lower even in case of new disturb ances. It is understood the arrange ment by which the committee of the
 trust company presidents takes con- trol of the majority of stock of the
 Trust Company of America. and the Lincoln Trust Company, is only tenn dnufCA tn Fa-NGfahIiGh f-
 dence.
 What will be the ultimate disposition
 of this stock has not yet been serious ly considered, but it IS certain that the trust company committee and the clear ing house committee will insist that
 these companies pursue in future a policy of the strictest conservatism and shall not embark in any underwritings
 which are not capable of being con-
 verted readily into cash.
 The directors of the Lincoln Trust Company held a protracted session to-
 night to consider the future policies
 of the company and to make plans to obtain new business. Frank Tilford, President of the company. said after the meeting that a statement concern ing the companys affairs was in prep aration and would be made public to- morrow.
 Clark Williams. State Superintendent l of Banks announced tonight that be- cause of the now satisfactory condition I@of the Trust Company of America and the Lincoln Trust Company, he had withdrawn the officers of the State Banking Department from those in- stitutions. He said that he felt con-
 vinced that the situation was now in
 satisfactory shape and that no weak | spots remain undisclosed.
 J. Pierpont Morgan was visited by several prominent fnanciers tonight, but as far as could be learned there was no formal conference.