The herald and news. [volume] (Newberry S.C.) 1903-1937, 1907-10-29
MONEY SIIIATION
HOLDING ITS OWN
SEVERAL FAILURES OF BANK
ING AND TRUST COMPANIES.
The Big Banks Meet All Demands Of
Depos::tto-.ss--- Weekend Pause Re
lieves Situation.

financial institutions of New York
have shown extraordinary power of
re>;>;aMr" t. H.. liHrS IRE put upon
them. While i: is true tia: several
miner ii:>,;i;;:;;.,n> have been forced
to clo>c their dnnrS. yet two things
should be said about th11n-fi!st, that
the amcunt involved Was not 50 grca.
as to cNer; any marked influence on
the general situation. Is these bank,
were l3catei in residential quarters
and did not come into touch with the
larger financial institutions Of the
metropolis. and second. that there IS
every rcaScn 10 believe that these
banks and trI:St companies are en-
tirely solvent and their difficulties
will prove TO be only temporary and
due entirely TO Inability to secure
ready cash on the eilt-edged securi-
ties in their vaults.
In the light Of the general excite
ment the savings banks thought it
wise to put into effect the rule re-
quirine 80 to 60 days. notice for the
withdrawal Of deposits. and this will
prevent the withdrawal Of money
which would otherwise be put in safe
tv deposit boxes. The savings banks,
if they continued TO make payments,
would be obliged to withdraw funds
from the national banks, thereby
causing an additional strain on the
general banking situation:~ There
was not the slightest hint that any of
the savings institutions was in any
thing but the soundest condition and
it was pointed out that the savings
banks of this state are so restricted
by law in investing their money that
there can be no question taat all Of
the securities in their possession are
of good value and readily salable in
normal times.
Banks Closing Their Doors.
The institutions which closed their
doors today, with the sums due depos-
itors, we're:
The United States Exchange bank.
Harlem, 100000.
International Trust company, about
100000.
The Borough bank Of Brooklyn, $4,-
100000.
The Brooklyn bank, $2,0O0,0O0.
Williamsburg Trust company,
Brooklyn, $7,5O0,00O.
The First National bank Of
Brooklyn, $3,5OO,O0O.
The First National bank Of
Brooklyn, the Williamsburg Trust
company and the International Trust
company were allied institutions:
None of these companies had any i'm
por4ant business connections with the
larger banks which are representa-
tive Of the city'S financial affairs.
Paid All Demands.
On the other hand number Of fav-
orable features marked the day. The
Trust Company Of America and the
Lincoln Trust company, the two Or
ganizations which have suffered most
from runs, have been slowly paying
out to their depositors and closed to-
day with all demands having been
met. In the case of the Trust Com
pany of America the run has we'll
nigh spent it's force as the great bulk
of the depositors nave been paid Oft.
AT the close Of business there were a
good many in line at the Lincoln
Trust company, but also there was
marked reduction in the number OF
anxious depositors.
The most favorable incident OF the
dav was that the stock exchange was
provided with funds ample to meet It's
immediate necessities by a money
pool, headed by J. Pierpont Morgan,
which sent about $15,O0O.000 to the
exchange during the afternoon. AS
all of the loans made today hold over
until Monday, the stock exchange sit
uation will not be a factor in the pro-
blem that the bankers may be called
upon to solve tomorrow. A very en-
couraging feature Of the afternoons
developments was signed statement
bv Clark Williams, the newly ap-
pointed state superintendent of
banks, affirming the solvency Of the
local institutions.
A further encouraging development
Of the afternoon, the good effect Of