Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1907-10-22
IMPROVING.
New York Bank Situation
Looks Much Better.
Action Of Clearing House Serves
10 Prevent Alarm.
Many Banks Affected, Though, Sill
Need Assistance.

sion of the banking community was to-
| dayconsiderab relieved and the day
passed with no adverse developments
of Il serious character but with much
| reassurng. At the same time there
was evidence that some of the banks
| most affected by recent events We're
| still in need Of assistance. but the
promptnesS with which the Clearing
House accorded it did much to allay
| further alarm.
| The general Improvement was reflect
ed in the buOyancy of the stock market
and the steady advance in prices from
previous low levels. On the other hand,
the conservative element deferred a too
OptimisIi c view until the relief given
10y the Clearing House had continued
| for several days and had permanently
| re-cStablished the stability of some OF
the weaker institutions, notably the
Mercantile National Bank and the New
Amsterdam National Bank.
The Clearing House was called upon
today to meet debit balances of the
Mercantile and the New Amsterdam
Banks to the extent of upwards of S.
600 900, of which the Mercantile owed
about 81 SOC. 400 and the New Amster-
dam 5000. 900. The debit balance of the
National Bank of North America
amounted to $S5O.OO0. While there was
said to have been some discussion be-
tween the Clearing House committee
and the officers of the latter bank as to
the necessity of giving it any support,
it was not found necessary to do SO
and william NJ. Havemeyer. the presi-
dent of the institution. declared that
MI Of
ana would not ask one dollars aid from
the Clearing House.
1.-THE situation" Mr. Havemeyer said,
rs really far better than we expect
ed. So far only about s15O,0OO has been
withdrawn. When the bank opened
this morning we had a million dollars
on hand to pay all Corners, but only a
small portion was used"
The fact that the Clearing House
committee regards the situation as
still serious was shown by the remark
of a member of the committee that the
Mercantile Banks debit balance was
unexpectedly large and disconcerting."
The committee remained in session
the greater part Of the day discussing
general plan of policy with regard
to assisting such banks as might need
help. After the committee had adjourn
ed for the day, James T. Woodward.
president of the Hanover National
Bank and chairman of the committee,
said the conditions were improving an6
that thc committee felt equal to meet
ing any emergency that might arise
tomorrow.
William Sharer. manager of the Clear
ing House, said the situation was under
control that some of the more awkard
features had been eliminated. and that
from this time there would begin a new
area in New York banking. Mr.. Shearer
said also that the Clearing House COM
mittee would carry out the policy an
nounced yesterday Of assisting the weak
er banks to discharge their obligations.
The committee it was added, would meet
every morning to pass upon the collater-
all offered. in setting debit balances
The new officers of the Mercantile Bank
and Bank of North America were engae-
ed today in clearing up many old ac-
counts and obligations contracted by the
preceding administrations and inducing
borrowers to take up their more pressing
requirements
On the Stock Exchange the improved
ranking condition resulted in a rally of
prices. the more active issues advancing
and points with greater gains in some
OF the specialties. Fart of this advantage
was lost later by furry in call loans.
the rate for which advanced to ca per
cent.
On the curb the feature was the heavy
selling at severe declines of Consolidated
steamship bonds. which at one time sold
at TX decline of 3as points from the high.
me net loss for the day was 2 points.
me Consolidated Steamship Co. is con-
trolled by Charles w. Morse.
One development today which cid
NOT tend to ease the prevailing condi-
ton was the application for a receiver
t"r the f'~'n of otto Hei--o 90 mo
brokers' who were suspended from the
New York Stock Exchange last week,
n pCns