The Montgomery advertiser., 1907-10-30

banks exceptionally strong. as shown by the fact that there was no meeting or the clearing house unti1 this morn Ing 1t was determined that similar ac- ton was necessary in order to prevent other cities from increasing their sup ply of currency by cash withdrawals from this city.
 Not Applicable to Future Depossts.
 They therefore resolved that except as to deposits of cash and of New York excnange hereafter made. which de- posit can be withdrawn in kind upon dShand the associated banks of Mont gomery limit their cash payments to any one depositor to s25 per day ex- cept that pay rolls and pay checks of railroads and industrial corporations may be paid in cash snd that cheeks will be certified payable through tho clearing house. This action preserves tne local situation from the needs of otner communities. and has preserved our supply of currency for local needs uhtli the present sfringency which is
 regarded as temporary and due large " 10 local conditions in New York has !, Under the present currencv .vstem sners m IS no method providing for ex- panuins the Volume of money to meet eAtraordfnary occasions hence inc bankers of New York nearly forty years ago devised the system of issu- lng ciearing house certificates as a metnods of necessary relief from monetary stringencies. 1t was resort ed to the last time in 1893 when it was general over the United States without tne loss of dollar to depositor. The singular and fortunate feature Of the present stringency is that 1t has hap pened at time when the country is generally prosperous, as the cotton and grain crop will soon return money for use In commercial and industrial busi- ness. and the present stringency will in all probability be of short dura- tion.
 Precedent In 1893.
 Most of our present business houses and many of the individual dealers will recall that the operations of the clear Ing house restrictions in 1893 did not prove unduiy burdensome after it be- came effective. and was understood by the community. and we apprehend that these same people will commend the action of the banks now as they did then. One thing Is certain that New York bankers must of necessity. in order to obtain bills against which to import gold. bend every effort to- ward restoring normal methods in the handling of cotton bills, and this will mean restoration of normal methods on the part of local banks in provid- Ing for funds to pay for cotton. Mean while it may be stated that this fea- ture of the business of Montgomery will receive careful consideration and some plan worked out whereby re- strictions upon the orderly marketing of cotton will be, if not eliminated en- tfrely, greatly minimized; the matter of clearing house action not having been anticipated until the action or Birmingham and Mobile banks became known today. it has only been possi- ble up to this time to adopt prelimin- ary measures"
 Tuscaloosa. Banks Act.
 Tuscaloosa, Oct. 9--(Special. 1---All oi the banks of Tuscaloosa issued let ter to the public this morning announc- ing that owing to the fact the banks of Birmingham, Cincinnati. St. Louis Chicago, New Orleans. New York and other large cities are unwilling to re- init cash money to interior banks in payment of their balances due the in- terior banks from the city banks. and that because of this. it would be abso- alutely necessary for the industrial and commercial welfare of this city that its agricultural. saw mill. iron. coal and other industrial pay rolls. should be cared for. 1t would be necessary to limit the cash payment to any one de- positor to $25 per day They further stated that New York and other checks would be issued as usual.
 The letter was signed by The City National Bank. The First National Bank and The Merchants Bank and Turst Company.