Daily Arizona silver belt., 1907-11-22

Colonel William A. Gaston, president of the National Shawmut bank, writes this letter to the editor of the Herald:
 "The chief present danger in the financial crisis is the difficulty that the solvent business house finds in borrow ing new money or collecting its bills receivable, which under ordinary cir cumstanees would be paid promptly. If such solvent concerns are forced unnec- essarily by the banks to pay their notes, bankruptcies or reeeiverships, which will be of widespread and serious con sequence, are reasonably sure to fol low.
 "The National Shawmut Bank, there fore, has written the enclosed letter, which was sent out tonight to its TOO customer banks and trust companies throughout the United States, but large ly throughout New England, who are loaners of money, asking them to assist solvent merchants by not forcing pay ments of notes when payment means ruin.
 "As you know, many kinds of indus trial enterprises in Massachusetts have gone on half time within the last few days, and others have closed down ab- solutely, not because these businesses are insolvent, but because they are un- able to get money under the circum- stances.
 "My purpose in sending you copy of the enclosed letter is because I know how much you desire to avert further distress, and how much you, personally, are interested in the restoration of con fidence, and in the belief that if this action were known publicly it might stimulate other large financial interests to follow similar course, and thereby bring to merchants everywhere feel ing of relief and confidence in the fu- ture, which in my opinion is the most essential and necessary thing at this moment Very truly yours,
 CIVILIAN A. GASTON."
 Banks Letter
 The National Shawmut bank is by far the largest banking institution in New England, having been formed through consolidation of over twenty Boston banks. Its capital and surplus amount to SS,300,000 and its total as- sets are $70,000,000. The letter sent out yesterday is as follows:
 "The National Shawmut Bank, "Boston, Mass, November 15.
 "Dear Sirs: In period of such stringency of the money market as we are now experiencing, it is of the ut- most importance that the banks shall renew, as far as it lies in their power, the notes which may be maturing. of merchants and manufacturers and oth- CTS who are worthy of credit.
 "In many cases, it is utterly impos- sible for perfectly solvent business houses either to borrow new money or to collect their receivables, which or dinarily are paid, or to sell their mer- chandise, and, if they are forced un- necessarily by the banks to pay their notes, bankruptcy or receivership is sure to follow.
 Will Restore Confidence
 "In order to restore business affairs to a normal state, general liquidation of business must take place. This, we believe, every merchant is attempting to do to the extent of his ability, but the banks and trust companies must, in our opinion, do their share by extend. ing maturing notes in whole or in part. The fewer the number of solvent mer- chants who are forced to pay their debts, where it means hardship, the few CT the failures, and, consequently, the sooner a restoration of confidence and a normal condition of the money market will ensue.
 "We therefore urge you, as far as is in your power, to help the serious mer. cantile situation in this way.
 "Very truly yours,
 HNational Shawmut Bank,
 CIVILIAN A. GASTON,