Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-10-21
CLEARING HOUSE GIVES AID
Market Reassured by Ready Support
of Weak Banks.
ASSETS SAID TO BE PLENTIFUL
President Of Mercantile Says Institu-
ton Can Muster lao for Every
Dollar Of Liability.


favorable sentiment in business and bank
ing circles about yesterdays changes in
various bank arrangements and the prom
ises of support made by the Clearing
House Association received something of
setback this morning when 1t became
known that the debit balance of the Mer-
camille National Bank at the clearing
house was 81, 100000. The debit balance
Of the National Bank of North America
was $3.50. 600. These figures indicated that
heavy Withdrawals from the two banks
were being made. and the totals were re-
ferred to by one member of me clearing
house as Unexpectedly large and dlscon-
certing"
1t was announced in a short time, how
ever. that the Clearing House Association
would extend assistance to the Mercantile
and the National Bank of North America.
During the early hours of business there
was nothing to indicate that anything was
out Of the ordinary. as far as the appear
ances Of the banking offices Of the insti-
tutions were concerned.
Assets Exceed Liabilities.
The stock market opened strong and
higher. all of the market leaders partici-
pating in the rise in prices. Practically
the only weak feature was Consolidated
Steamship Company bonds. which are
traded in on the curb, and which declined
to 1885. drop of 37s.
Seth M. Milliken. the newly elected
president Of the Mercantile National
Bank. said today that. counting out the
Heinze Morse loans, the assets OF the
bank are one dollar and forty cents for
every dollar of liability, and that the
loans In question are of value
Every one interested in Wall street and
the financial affairs in the city in general
felt much easier over the banking situa-
ton by reason of the clearinghouse an
to the observation-disclosures banks If
assistance were required. When the
United Copper corner collapsed last week.
and was followed by the retirement of F.
Augustus Heinze from the presidency of
the Mercantile National Bank, disquieting
rumors were circulated not only as to the
standing Of that bank, but also as to the
stability of the institutions controlled by
Charles w. Morse and E. R. Thomas, who
were associated with Heinze in the Mer-
camille.
Clearing House to Rescue.
These ramors rapidly spread through
out the downtown district, and they had
considerable to do with the crumbling
away Of stock exchange prices last week.
The action of the clearing house, how
ever. following the retirement Of Morse.
Thomas and Heinze from their New York
banks. cleared the financial atmosphere
considerably, and sentiment in and around
the stock exchange was more cheerful to-
day than for some weeks.
The clearing house committee was again
in session this morning to deal with the
developments which might arise in the
banking situation. Manager Sherer of
the clearing house said that institution
had the situation under control, that all
the undesirable elements had been elimi-
mated and from this time would begin new
era in banking In New York. It was off,
cially denied that 1t would be necessary
to issue clearing house certificates in or
der to secure support for the banks which
have been under criticism.
Petition Against Heinze & Co.
Special Dispatch to The Star.
NEW YORK, October 21.-A petition In
bankruptcy was aled in the federal court
this morning against Otto C. Hetnze, Ar
thur p Heinze and Max H. Schultz. the
members Of the firm Of Otto C. Heinze &
Co. Of the New York Stock Exchange.
The petition was presented by the firm
of Meyers & Goldsmith, In behalf Of three
creditors.
William Bohotham assignee for the
stock exchange concern OF Gross e klee-
berg, presented a claim for S325.373. Leo
Wise, for Edward v. Brokaw & Bro.
presented a nominal claim of GO cents.
Frank o. Barnaby. for Herzfeld & Stern.
claimed S2.901.
The petition against the Heinze house
alleged preferential payments. Over So
0OO, coo had then been paid to the Mercan-
tile National Bank. 1t was stated, besides
100000 to the Bank of America and list
of other parties. and large payments to F.
Augustus Heinze and Arthur P. Heinze,
the latter of the firm. while suspension
was in view.
The appointment OF receivers will be
considered before Judge Hot this after
noon.
Discouraged by Bank Outlook.
Special Dispatch to The Star.
ALBANY, N. Y, October 21.-Luther W.
Mott Of Oswego. lately appointed state
superintendent of banks by Gov. Hughes.
resigned today. giving as a reason Ill
health.
1t is understood. however,. that Mr..
Mott had been looking over the banking
situation in New York city and became
DISCOURAGED at the outlook