Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1907-10-21
MERCANTILE BANK
DEBIT BALANCE
When Made Known. Gave Favor
able Sentiment on Banking and
Business Circles Setback.
THE AMOUNT is $1,9oo,ooo.
Methods Eliminated from situation OF
Last Dccadc-Acl,nowlcdecd That
Crisis Was Serious One,

Now York. oct. 2I.--Thc most fav-
orable sentiment in business and
banking circles resultant from yestor-
days changes i'm various bank man
agements and the promises " sun
port made by the Clearing House as
ISOLATION received something Of set
ack today when il became known
that the debit balance Of the Mercan-
Tile Medicinal bank. at the clearing
house was s1.9OO.OOO.
The debit balance Of the National
Bank Of North America uasSS5O. 600.
These figures indicated that heavy
withdrawals from the two banks were
being made and the totals were re-
feared 10 by one member of the Clear
ing House association as "unexpcct-
cdly large and disconcerting"
II was announced I'm a short time.
however. that the Clearing House as
ISOLATION would extend assistance to
the Mercantile and National Bank Of
North America.
Seth NJ Milliken. the newly elected
president OF the Mercantile National
the Hcinze- Morse loans. the assets Of
the bank are $40 for every dollar 81
liability and that the loans in Ques-
ton are Of value.
stocks today opened strong and
higher. an the market leaders particle
pating iu the rise.
sundays meeting OF bank preh~
dents succeeded in finally eliminating
The Heinze. Morse and Thomas inter-
ests on certain of the clearing mousse
banks.
Besides choosing new officers for the
banks I'm question, and announcing
that each was I'm a solvent condition
q fund OF 100000 600 was pledged by
a score Of individual banks TO extend
aid TO those banks and render such as
sistance TO meet their depositors as
the clearing house committee may
think necessary.
The deposits OF the banks represented
at the Sunday conference amounted 10
81. gbO. OOO. 900. The men, IS In number,
every one a practical banker. decided
upon the measures for eliminating the
interests which have been under crit
icism. which measures, later IN the
day were carried out.
The methods that have ben climb
mated from the local banking situation.
Il a. stated are = development OF the
last decade. These consist Of buying
Of bank, then putting up the stock
representing that control as collateral
for funds to buy control OF another
bank. and continuing the process with
banks and trust companies, so that
the result is - pyramid controlling
chains OF financial institutions and
their deposits. The crisis, 70 Is declar-
ed, was a serious one, but the cure
extended Is expected TO be complete.
Manager Shcarer. Of the Clearing
House, said today that that Institution
had the situation under control: that
al the undesirable elements had been
eliminated, and that from this time
would begin new era In banking I'm
New York. u was officially denied that
IL would De necessary to issue clear
ing house certificates, IN order TO
secure support f0v the banks. which
have been under criticism
United Copper. a Heinze security. ad-
vanced two points today from AZ to 81
Seth NJ. Milliken, the new president
OF the Mercantile National bank
questioned as TO loans made to r. A.
Heinze and Charles W. Morse. said IN
was expected that they would repay
them as soon as they were able.