Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-10-26
New York Financial Institu-
IutionS Show Extraordinary
Power of Resistance in Face
of Nerve Racking Conditions
FEW UNIMP0RTANT BANKS
FORCED TO CLOSE DOORS
Decision to Issue Clearing
House Certificates Expected
TO End Further Anxiety Over
Currency Supply.
fBy Morning Journal special Leasea Wire,

Currency Supply,
lBy Morning journal special Leased wIre.I
New York, oct 25,--Another nerve
racking day has passed, but the iinan-
cial Institutions Of New York have
shown extraordinary power of resist
ance to the pressure put upon them.
While IL Is true that several minor in
sututions have been forced to close
their doors. Yet Two things should be
said about them; first, that the amount
involved was not so great as to exert
any marked influence on the general
situation, as these banks were located
In residential quarters and did not
come into touch with the larger iinan-
cial institutions OF tho metropolis; and
second, there Is every reason to be-
lieve that these banks and their difh-
cultes Will prove to be only tempo
rary and due entirely to inability to
secure ready cash on the gilt-edge Sc
cuiities Ia their vaults OF course,
the cessation of business by these COM
panics caused trouble TO many people,
but not SO great as Il might seem, as
the depositors are for the most pais
located In the Well-to-do quarter of the
city, and many of them are peonle of
wealth who have suffered no great in
convenience
In the light Of the general exelte-
ment The savings banks thought IL
wise To put into effect the rule re-
qulring thirty TO sixty DAYS notice for
the withdrawal of deposits This will
prevent the withdrawal OF money
which would otherwise be put In
safety depusit boxes The savings
buuys. " they continued to make pay
mcnts. would be Obliged to withdraw
funds from national banks, thereby
fGHaflFt III
general banking situation.
There was not the slightes- hint that
amy OF the savings institutions was
iu anything bat the spundest condition
and 10 was pointed ont thai the savings
banks nf this state are so restricted by
law in investing their money that there
can be- NJ question that iii the secur-
tiles in their possession are of good
value and readily salable IN normal
times.
The institutions which closed their
doors today, with the sums due deposit
tors, were
Tho l'nitcd Stntes Exchange bank.
Harlem $500 600. International Trust
company. about 100000; the Borough
Bank Of Brooklyn. $4,000, ,000 the
7ronklvn bank. $1,000, 600: Williams
burg Trust company Brooklyn. s7.50O,-
600, and the First National Bank of
brooklyn. $500. 900.
The First National bank OF Brook.
lyn, the Williamsburg Trust company.
and the International Trust company
were allied institutions. None of these
companies had any importan; business
connections with the larger banks
which are representatives of the cltys
financial affairs.
on the other hand n number of IA
vorable features marked the day. The
Trust company Of America and the
Lincoln Trust company the organiza
tions which have suffered most from
runs. have been slowly paying out to
their depositors. and closed TODAY with
all demands having been met In the
case of the Trust company Of America
the run was well nigh spent as the
great bulk Of tho depositors have been
paid off At the close Of business
there were good many In line at
the Lincoln Trust company, but also
there was marked reduction in the
number of anxious depostors.
very encouraging feature Of the
p afternoon's development was a signed
statement by Clark Williams. the
newly appointed state superintendent
Of banking. affirming the sOlVency Of
the local institutions.
There was the usual crop of alarm
ist reports during the day, one ~
thom to the effect that lJrse dl
but this as well as all the other ru-
mors. proved 90 be false.
a further encouraging development
of the afternoon. the good effect OF
which can scarcely be overestimated.
was the decision arrived at unofh-
riaUv fo issue clearing house certii-
r9tas probably tomorrow. There will
he fun mcetiEg NJ the clearing house
tomorrow morning at IL
o'clock for the purpose Of taking OFF,
ciHf action for the Issuance Of these
The immediate effect OF
this uIlI be 90 enable the banks 20 set
tio balances between themselves with
those certificates and thereby release
largo sums ~ currency for the regular
needs of business.
Tho decision 20 issue clearing house
rar.I e r.affs o. likely 10 end any further
anxiety in regard 10 tho supply ~ cur
rarrr The decision means that here
lftor large balances against any par
ffrular hank at the clearing house can
hs .aftlcd IN clearing house certificates
ana ftr bank allowed to retain It's cash
bob meet other demands The ccrtih-
.afes eili be issued as usual. only upon
.he deposit with the clearing house
.arirnieeion Of acceptable securities
and only In amounts as the clearing
committee shall approve but IN the
.Hao ~ bank whose Affairs are sound
here viii De- no arbitrary limit put 70
ha assistance of this sort 20 be rem
lar.1 whom needed.
Tho first Issue ~ clearing house GER
.rc4taa wne in 1850 and there were
..versf issues during the period of the
sar other issues occurred in 1873
md 1854. The last occasion on which
.her wark avaiied or wns In 1898. The
arrarfna house certificate is practically