Waterbury evening Democrat., 1907-10-26
SAVES THE SITUATION
Clearing House of New York Will
 Issue Loan Certificates.
SAVINGS BANKS TAKE ACTION

| gan, Secretary Cortelyou and leadin financiers of this city were a unit fl | declaring that the financial crisis i practically over. Many things occurre,
 to clear and improve the situation. The most important of these was tn
 action of the Clearing House Associa tion of Banks in issuing certificates re deemable in currency and the agree
 ment made by the presidents of say
 ings banks throughout the city to talk,
 advantage of the law requiring sixt!
 days notice from their depositors be
 fore withdrawing funds
 Money for all legitimate purposes 1T
 the Wall street district was provided
 by the alliance created by MT. Morgan
 and shared in by the Washington gov
 ernment and leading bankers.
 relieve the condition on the stock ex
 change. The probable importation of
 $5,000,000 in gold by the National City
 bank was another factor that contrib
 uted to the feeling of restored conf
 dence and inspired Secretary Cortel you, Mir. Morgan and other men who
 have been striving to relieve the strain. ed conditions to express the opinion that the worst of the financial trouble is over and that only common sense on the part of the people will be required to prevent serious disaster.
 President Satisfied With Situation.
 So encouraging view did President Roosevelt and his cabinet at Washing ton take of the situation that semi official announcement was authorized expressing satisfaction with the steps taken by the government acting in conjunction with MT. Morgan, to bring about return to normal conditions. There were no failures of banking in stitutions, though eight of those doing business in Greater New York closed their doors to prevent runs inspired by the fear of the people.
 These institutions were the United States Exchange bank. the Interna- tional Trust company and the Guard ian Savings bank of Manhattan; the Borough bank of Brooklyn, the Brook lyn bank, Williamsburg Trust com pany, the First National bank of Brooklyn and the Jenkins Trust con- pany of Brooklyn. holding deposits az $22,000,000.
 There is little or no question of the solvency of these institutions. Like many other banks. trust companies and savings institutions, they are merely short of ready money and hold securities representing an actual value of more than double their obligations.
 Closed to Prevent Spread of Panic.
 The action of the officers of these banks was due entirely to their desire to prevent spread of the senseless panic which has threatened for several lays. The closing of these inspired the presidents of all the savings banks in Greater New York to apply the six ty day rule. beginning this morning. This action was taken to prevent pos ,ible disaster to both the banks and heir depositors.
 State officials and officers of the say ngs banks unite in the statement that here is not the slightest question of he solvency of those institutions. and IS soon as the frenzy of fear among he people passes away the sixty day ule will he ignored.
 So confident are the officers of the avings banks of their ability to meet very legitimate demand that they lave decided to make exceptions to the operation of the rule wherever it is ound actually necessary.
 The savings banks of the city hold n deposit S1.052, ,663 GOO. which is rep esented by actual cash or gilt edged ecurities that can he turned into cash nder normal conditions.
 Wall Street Resains Courage. A much calmer feeling prevailed in Wall street than the day before. Val es on the stock exchange were higher nan at any time during the week. The lOaning of S10.OO0.000 by MT. lorgan and his associates at normal ates of interest dispelled the alarm mich existed for an hour or two dur ! lg the morning. and exchange leaders ! the opinion that the calam- 1 ' which threatened Thursday had . cen averted.
 The issuance of clearing house cer- flcates which was ordered today will | l the opinion of bankers do more to 'lieve the Wall street situation than 1ything else. Certificates of this char tier were last issued fourteen years go.
 The Subtreasury assisted in the work helping out the hanks by turning Ter to them Ss.UOO.OOO in gold. taking ,vernment securities in exchange. The Trust Company of America was jain the storm center of the troubles
 Wall street. and the run inaugu- ted on it on Wednesday continued roughout the day. Every demand esented to the paying telIers met lth prompt payment. The Lincoln rust company also withstOod the run hich began on ThurzCiay.
 Officials of both institutions united
 declaring that they were in position
 meet every demand. but this had no 'ect upon the lines of depoSitOrs und at their doors when they opened r business fin the morning At some
 the small uptown savings ba Ks Ies of anxious dePositorS gathe ed fore the doors were opeued. and d eat deal Of money IA sa4saH uuauts | ss was paid out during fhe day Ths ieers of these hanks communicated