The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-11-07

RUNS ON TRUST
COMP AH|ES END
New York Financiers, After
Many Conferences, Agree to
Accept the Securities.
NORTHWEST TO BE HELPED
GRADUALLY THE SITUATION is
CLEARING.
NORTHWEST TO BE HELPED

New York, Nov 6-The general con-
ditions of the financial situation were
favorable today. The runs on the
trust companies had practically ceased
under the encouraging influence of the
support of the trust company commit
tee; gold engagements were further in
creased, and the stock market rose
buoyantly in recognition of these con-
ditions.
The announcement by Mr.. King
president of the Union Trust company
early in the morning that an agree
ment had at last been reached by
which the Trust Company Of America
and the Lincoln Trust company We're to
deposit their stock in the hands of a
committee of the trust company presi-
dents, and in consideration of this were
to receive all the support required,
finally cleared the air in regard to the
trust company situation.
Fears DispeIIed.
Grave apprehension existed after the
termination of the conference at Mr..
Morgan's house at o'clock this morn
ing that an agreement in regard to the
two trust companies would not be
reached and that they might be SUBJ
jected to a run too strong for their
impaired resources. Now that this
danger is removed it is believed that
the situation will gradually simmer
down with the continuous arrival of
gold until the stringency is converted
into the plethora of reserve money In
banks which usually follows a crisis.
Additional gold engagements were
announced today of S1,000,0 600 on ac-
count of Lazard Freezes and $4,000
for Montreal. This brings up the to-
tai gold engagements for America on
the recent movement to s31 500, 600,
which would afford the amount re-
quired for legal reserve against de-
posits of s150,000,OO0.
The gold which arrived yesterday
was deposited today. and that by the
Lusitania viii soon be in the vaults of
the banks.
British Bank Rate.
Where there is still some apprehen-
sion regarding the possible effort of
the Rank of England to check the out
flow of gold from London by raising its
discount rate on Thursday, there is a
strong feeling among conservative
f1nanciers here that the directors of the
Bank of England will be very reluctant
to fix q rate of discount which has not
been touched since 1873 1t might have
been found necessary to overcome this
reluctance il the Bank of France had
not so generously dipped into its i'm
mense reserves, under the enlightened
policy of Governor Pallaine, by the
purchase of sterling bills to the amount
of 100000 to relieve the London
market.
Worst Discounted.
The strength of the stock market
was the reflex of improved feeling
throughout the financial community. 1t
is believed that the stock market has
pretty we'll discounted the worst, and
that prices are not likely to go much
lower even in case of new disturbances.
It is understood that the arrangement
by which the committee of trust COM
pany presidents takes control of the
majority stock of the Trust Company
of America and the Lincoln Trust COM
pany Is only a temporary device to re-
establish confidence. What will be the
ultimate disposition of this stock has
not yet been seriously considered, but
it is certain that the trust company
committee and the clearing house COM
mittae will insist that these companies
pursue in future a policy of the strict
est conservatism and shall not embark
in any undertakings which are not
capable of being converted readily into
cash.
Looking for Business.
The directors of the Lincoln Trust
had a protracted session to-
night to consider the future policies
of the company and 10 make plans to
obtain new business. Frank Tilford.
president of the company, said after
the meeting that statement concern
ing the company's affairs was in prep
aration and would be made public to-
morrow.
Clark Williams, state superintendent
of banks, announced tonight that be-
cause of the now satisfactory condition
of the Trust Company of America and
the Lincoln Trust company, he had
the officers of the state
banking department from those insti-
buttons. He said he felt convinced that
the situation was now in satisfactory
shape, and that no weak spots remain
disclosed.
j. p. Morgan was visited by several
prominent financiers tonight. but so far
as could be learned there were no for
NAL conferences.
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