The Montgomery advertiser., 1907-10-28
Outlook for Week Looks
 Brighter. NEW YORK BANKERS TAKE
 A MUCH NEEDED REST
United Action and Wise CounseIs
 VIII Solve Problem.
Clearing House spends Busy sabbath Day Preparing te Issue the Loan certiacates to Banks To-
 day--seuthera Bank.
 Are Undisturbed.

New York. Oct. 37.--The feelina among banking authorities tonight Is. that united action and wise counsels have already accomplished much in providing a solution for the nnancfaf problem with which they have heer called on to deal during the last week and that with remedial plans now fur ther perfected. the promise is efronn for the uninterrupted maintenance Of financial stability.
 Today was marked by the usual Sum day calm. which gave the nnanciaI leaders an opportunity to ease the ters- sion of overwrought nerves experf- enced during the last week Most of them remained at home throuxhout the day and there was a noticeable ab- sence or those hurried conferences oe recent days.
 The departure of Secretary Cortelyou Tor Washington removed a conspicuous ngure from the field, but ft was falf that with President Roosevelt's stronw support. as expressed in hts letter made public last night, MT. Cortelyou's presence in Washington was favorabla to such further governmental agsisf- ance as might be required.
 At the clearing house. there waa much evidence of activity in pranarn- tion Tor the Issuance of loan certifi- cates tomorrow. This. however, was Sonnned S to tne subordinates, as the loan committee which is to pass upon collateral offered for the certifcafea' did not hold formal session.
 Another evidence of activity van tha small knot of people gathered at souae or the institutions where runs were ir progress lest week. waiting for nn ad- business tomorrow. The indlra ti,,s~ are that banking institutions will not pay out large amounts in currency to- morrow except to meat Iegitimate ra- qnirements of their clients for current To Prevent xsaralnm.
 It has long been the practice Ae trust companies and some of the small or banks, In meeting checks for con siderable amounts. to draw checks upon the national banks, with which their reserves are kept. If they pursue fhia policy tomorrow and until the end og the present crisis, 1t will not be a de- parture from their usual practice Such checks. under ordinary circumstaucaa are preferred to currency and If cur rency is demanded in unusual amounts. Ut will be refused unless evidence ia given that it is required in good faith and for other purposes than hoardfne. to prevent which Is the main purpose of this step.
 
 checks where desired. and to provide funds. for pay rolls and other IeRitf- mate and ordinary uses. It may ha thought advisable to stamp checks payable through Clearing House." as : was done in 1888. The suspension oE currency payments at that time ex- tended to all the banks and also to the trust companies which were then a comparatively small factor in tho situ- ation. Little, if any. inconveniencw resulted from tho payment of checks instead of currency except In cases where there was special need for cur- rency. Currency at that time went fo a premium of a fraction of one per cent, and In soma cases even as high as a full one per cent This was due to the fact that currency was refused even for pay rolls, for the use of re- tail shops and for other purposes for which is was required.
 It is believed that the situation will not be so acute on this occasion and that currency can be paid where it Is required for legitimate business pur- poses and not for hoarding. This sys< tenn of check credit will operate in the usual manner and there will be no inconvenience to the man who does not make special effort to obtain curren- cy. Checks drawn fin payment of cur- rent obligations will be received for deposit by any bank and redeemed through the Clearing House in the usual manner. except that Clearing to"e> he'''prrs aEainst the bank will be settled in Clearing House loan eer- tifcates instead of currency. A man having a bank account will have checks put to his credit as usual and can draw against them freely without interruption in the course of his re- lations with the bank. It Is not be- lieved that the dearth of currency will be such as to prevent those requiring small amounts. or not having a regular bank account, from obtaining 1t.
 large force, of clerks was at ths Clearing House today preparing for the issuance of loan certificates tomorrow These are $5.0o0: &10.000 and S20.000 denominations. and In the following form:
 "Thls certiAes that the (nams of banh) has deposited with this com mittee securities in accordance with the proceedings of meeting of the Ass0- citation, upon which this certificate ts issued This certificate will be received in payment of balances for the sum Of S5 ,0dO from any member of the Clear ing House Association.
 "on the surrender of this certihcate by der -tting bank above named. the committee will endorse the amount as a payment on the obligations of said bank held by them and surrender q proportionate share of the collateral securities held hereunder"
 This is the form as used in 1888 when these certificates were last avail ed of. At that time the certificates were of great benefit and aided mater ially in clearing the very serious slt- uation then existing. One prominent banker pointed out that 1t could not be brougl.t to the attention of the country at large too strongly that ths present situation is dealing solely with the supplies of currency and that nei- ther the business credit of the na- ton nor it's industrial and agricultural prosperity is affected.
 corteIyou at Washington.