Los Angeles herald., 1907-10-26
BANKS RESIST
HEAVY DRAIN
SMALL INSTITUTIONS
SUSPEND
New York Stock Exchange Is Provided
with Funds by a Pool Headed
by J. Plerpont
Morgan

By Associated Press.
NEW YORK, Oct. 25.-Another nerve
wrecking day has passed, but the finan-
cial institutions of New York have shown
extraordinary power of resistance to the
lpressure put upoI them.
While il is true that several minor in
stitutions have been forced to close their
doors yet two things should be said about
them. First, that the amount involved
was not SO great as to exert any marked
influence on the general situation, as
these banks were located in residential
quarters and did not come into touch
with the larger institutions of the me-
tropolis; and, second there is every rea-
son to believe that these banks and trust
companies are entirely solvent and their
difficulties will prove to be temporary
and due entirely to inability to secure
really cash on the gilt-edged securities
in their vaults.
located in the well-to-do quarter Of the
city and many of them are people of
wealth who have suffered no great in
convenience.
In the light of commercial excitement
the savings banks thought it wise to put
into effect the rule requiring thirty to
sixty days notice for the withdrawal of
deposits. This will prevent the with
drawal of money which would be other
wise put in safety boxes. The savings
banks, if they continue to make pay
ments, would be obliged to withdraw
funds from national banks, thereby caus-
ing an additional strain on the general
banking situation.
There was not the slightest hint that
any of the savings institutions was in
anything but the solvent condition, and
it was pointed out that the savings banks
of this state ara so restricted by law
in investing their money that there can
be no question that all securities in their
possession are CT good value and readily
salable in normal times.
Small Banks Suspend
The institutions which closed their
doors today, with the sums due depos-
itors, were:
The u. S. Exchange bank. Harlem.... 5000, 900
International Trust Co.. about ......... 100. 900
The Bank of Brooklyn ..9.............. 1900, 900
The Brooklyn bank .................... 1.3Oo, 600
Williamsburg Trust CO. Brookyn.... $500, 900
First National Bank. Brooklyn......... $500. COO
The First National bank of Brooklyn,
the williamsburg Trust company and the
International Trust company were allied
institutions. None of these companies had
any important business connections with
the larger banks which are representative
of the citys financial affairs.
Cn the other hand, number of favor
able features marked the day. The Trust
Trust company, the organizations which
have suffered most from runs, have been
slowly paying out ito their depositors, and
closed for the day all demands having
been met.
In the case OF the Trust Company of
America the run was we'll nigh spent, as
the great bulk of depositors have been
paid off At the close of business there
were good many in line at the Lincoln
Trust company, but also there was a
marked reduction in the number of
anxious depositors.
The most favorable incident of the day
was that the stock exchange was pro-
vided with funds ample to meet its inn
headed by ]. P. Morgan, which sent about
SIS ,OOO,O 600 to the exchange during the af
ternoon.
Stock Market Firm
The stock market had held relatively
firm all day, but when the pool of money
was offered in the loan corner there was
an immediate upturn of prices and the
market closed strong at the best prices
of the day. As all the loans made today
ho.d over until Monday, the stock eX-
change situation will not be a factor in
the problems that the bankers may be
called upon to solve tomorrow.
A very encouraging feature of the after
moons development was signed state
ment by Clark Williams, the newly ap-
pointed state superintendent of banking,
affirming the solvency OF the local insti-
tutions.
There was the usual crop of alarming
reports during the day, one of them to
the effect that large dry goods house
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