Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1907-10-29
CHECKS GIVEN OUT IN LIEU OF
CASH TO INSURE PROTECTION
FOR DEPoslToRs AND FlNAN.
clAL CONCERNS.
NEW YORK SHOWS A
RETURN OF CONFIDENCE
BEGIN A NEW BusI-
NESS WEEK IN HOPEFUL
FRAME OF MlND-RuNs ON
BANKS OF NO MOMENT NOW.

Washington, D. G., Oct. 2s.-
Secretary Cortelyou stated today
that he had received very .reas-
surfing reports from New York;
Chicago and other points and that
everywhere confidence Is being
restored and conditions much I'M
proved.
Chicago, Oct. 2S.-The banks Of the
city are today largely upon check
ing basis. They have taken the step
of refusing to pay out large amounts
of currency and will not return to the
former manner of doing business un-
til the financial condition in the east
improves. In all the banks belonging
to the Clearing House association or
affiliated with 1t the depositors seek
ing today to withdraw money were
given the checks of the bank itself,
instead of actual cash. Depositors
were allowed to draw the full amount
Of their balances, but they were COM
PEELED to accept the banks checks in
stead Of currency.
Savings Deposits to Give Notice.
The rule requiring savings banks
depositors to give thirty and sixty
days notice was also put In force.
TIE banks declare they were COM
pelled to adopt these rules because of
the action taken by the banks in tho
east, which would soon have drained
this city of it's cash resources
Chicago Money to Be Kept There.
The details of the plan were work
ed out at an all day conference Of
bank presidents yesterday in the
headquarters of the clearing house
on the top floor of the Northern Trust
company building. Arrangements
were completed for the exchange OF
clearing house certificates between
the banks in payment Of daily ball
ances and methods for dealing with
exceptional cases that may arise in
the novel situation
It was the unanimous opinion OF
the bankers at the conclusion Of the
conference that the precautionary
measures adopted will prevent Chi
cago banks from being drained of
their cash by the outside demand for
money while at the same time runs
on the local institutions will be
made impossible.
Forgan Gives Views.
II think the stringency will be OF
short duration" said James B. For
gan, president of the First National
bank. as he left the meeting 'The
action taken in Chicago and dozens
| of other cities throughout. the coun-
| try will tend to bring the trouble to
head. By being brought to an acute
stage at once 1t will be remedied all
the sooner. / think in few days we
shall see signs Of the reaction that
will bring relief.
1--WE soon will have money flowing
into Chicago from our products that
are being shipped out and sold In
other parts of the country and in for
eign lands. Chicago could not be In a
more fortunate position at this time
Our financial condition has remained
sound throughout the unsettled con
ditions and in addition thereto ws
have taken precautions to prevent the
| depletion of our resources by outside
needs. All we have to do now Is ,c
await calmly the turning of the tide
to more favorable conditions"
Mr.. Forgan announced that the
banks OF Des Moines, Cedar Rapids
4 Duluth. Minneapolis, st. Paul, Omaha
! and Lafayette. Ind, have notified Chi
IdSU III tHC duopIipii VI q SASeAAA6
house certificate basis.
Chicago Markets Affected.
! Chicago Oct. 28.-The financia
condition in New York and the actiof
of the local banks in deciding to is
sue clearing house certificates and t
/ demand full legal notice on the with
/ drawal Of, time deposits caused {
4 weak market in all the grain pits to
day. Wheat declined four cents
corn one cent and oats one and one
eighth cents. Selling was in quite ;
4 large volume, but the demand wal
slack and buyers were extremely re
luctant to take hold.
Banks not Warned.
Within an hour after the openin,
of the doors fully 400 people lined III
at the withdrawal windows of the II
linois Trust Savings bank, which ha
the largest number of savings az
counts in the city. The depositor
were allowed, If they wished, to talk
out sums under 800, but for d;
J amounts over that full legal motto
vas required The majority of thos
in the bank during the early part 0
the day gave notice !