Daily press. [volume] (Newport News, Va.) 1896-current, 1907-10-24
THURSDAY. OCTOBER "a, 1907,
THE FINANCIAL STORM IN NEW
YORK.

The banks and capitalists general
~ m New York city are trying to make
the best of the situation by attempt
ing To convince the public that :
financial storm which is now sweep
ing the city Is only temporary mat
piCn but that they are dcepl>
worried over the situation. When th,
othcr trust companies allowed =
kniclerbockcr TO so To the wall it
was ample evidence that the solvent
institutions had all they could do to
keep their own banks from bocom
Ing .nsolvcnt One OF the main causes
of nc present financial distress IS
found in the work OF Hclnze's manip-
ulatoI Of Sopper. ana while 1t will
leave much wreckago behind, the storm
will have its uses. The corner In cop.
per was not the first That has gone
Wong. The Henae Interests were
not the first to learn that goods were
ON hand for delivery instead of be-
ing on hign shelves cut OF reach OF
intended victims. The void has nd.
miratlon for the man or woman who
successfully engineers corner. bur
llast. for 1t is a well grounded idea
for the individual or group that has
miscalculaled. There are times when
IT is filed with scorn,
For some time the Ua!ted States
copper transactions We're hanging
over the market in very heavy Hack
cloud albeit the stock Is dealt in only
on the curb. When the crash came
the regular market went with II as
a matter of course. We're copper alone
affected. the recovery would have been
rapid but along with the collapse of
the Heinze operations went numerous
rumors as to the conditions of various
banking institutions with which +.
Augustus Hclnze was connected. me
New York Clearing House was prompt
with assurances that The Mercantile
National bank was solvent, and with
the further declaration that the clear
ing house would stand back of IT, pro
yidcd all the directors resigned.
Hardly had the Mercantile bank
troubles been cleared up when there
came the announcement that all the
institutions with which c. w. Morse.
the steam boat and ice king, was
connected were in distress because
OF the loans that Morse had secured
from them. The work of Morse
in securing control of so many
banks has beeen looked upon
with suspicion for some time
past, for it is well grounded idea
iiat 40 nlaa dcs:Yes; &c ca1tscl 4 e;ripe
OF banks unless lie wants to use them
for borrowing purposes. 1t is III, un-
questionable right Of any man to buy
and pay for all the bank stock that
his purse permits but when control
of any considerable number or banks
in 4 community passes into the hands
of one man or group of men with the
most extensive and varied interests
and varied outside business entelpr.s-
es also in control it is not altogether
healthy condition for the banking
interest OF that community. Let us
take for instance just one enterprise
which Mr.. Morse appears to have sue
cessfully promoted that OF the Con
solidated Steamship company. Ac-
cording to the New York Commercial,
an authority on trade matters, 1t rep
resents combination of six steam
snip companies whose properties were
estimated to aggregate s45,OOO,OOo in
value; they were capitalized at S62,-
100000 in tie aggregate and had a
bonded Indebtedness of at least >24,-