The Montgomery advertiser., 1907-11-05
CRISIS HAS
 BEEN PASSED Financiers to Aid Trust
 Companies. HEAVY IMPORTS OF GOLD Stock Market Shows an Upward
 Movement. Report. From washinEten Indicate That The National Banking sys- tenn rnroaThout The Coun-
 try Is Sound.

NGW the stock market today reflected the ultimate decision of large bankers to support the two institutions, the Trust Company of America. and the. Lincoln Trust Company, which have been sup jected to runs during. the last six weeks.
 The day was one of doubt and con- flicting rumors and the fact that it passed without any adverse develop ments is an evidence that the worst of the situation is probably over. At late hour this morning an agreement was reached. largely through the in- fluence of Mir. Morgan, by which the trust companies will cooperate in the future for their mutual protection, and the directors will lend the assistance of their personal fortunes to meet imme- diate necessities.
 The assets of the two Threatened companies were carefully gsne over by experts on Saturday and Sunday. and with a considerable surplus after pay ing all claims and providing for the capital stock. Under these circum- stances, 1t was thought advisable by the big men to support them cordially If they would adhere to thoroughly con- servative methods and direction In fu- ture.
 The achievements of these results to- day with the steady upward movement of the stock market until near the close, is believed to mark the turn of the crisis. The loss of $30.000.000 in cash by the clearing house banks ac- cording to their Saturday statement, in spite of the sa0. 100000 which had been poured into their tills during the week from the treasury, was expected to have a disturbing effect. 1t wan q worse showing than win be possible again in the face Of heavy arrivals Of gold.
 Gold engakements since the begin ming of the present movement. now amount to ssz,000 900. which would more than bridge the loss in the ex- change mafket and Rrousing concern in fofeign hlatkeks, were indicated to- London considerAbiy 'apcyA the point 1t which geld could prpfitaply be ina- syIlT Tlse fact that t IS stin consinK this way. indicates the determination of the New York bank CTS to strengthen theiy position, even at loss. The high rate for bills was caused by the defnand for exchange to cover the arrivals of gold.
 The cotton bills are not yet fully available, because shipments are slow and the bills .themselyes are subjected to considerable scrutiny before they are taken. The fact that the New York market bid q sufficient premium for .L the open market. and to withdraw an additional amount of 32.400.000 from the Bank of England, indicates that the increase in the discount rate of the Bank of England made st spe- cial meeting today before the opening of the New York market from 1-2 to 6 per cent, was not sufficient to check the gold movement.
 Discount Rate Rising.
 Hence arose much talk In London that the rate would be advanced to per cent. at the regular meeting of the Board of Governors on Thursday This will be the highest rate attained gold already on the way to New York or engaged for shipment, even at higher rate than the Bank of England. would probably not injure materially American credit. It is still believed that the Rank of France would aid the Bank of England by loans on sterling bill sat Paris. if 1t required 1t.
 Reports from Washington indicate that the national banking system throughout the country is sound and the efforts of the Comptroller of the Currency to get notes fn, circulation are meeting consider able success. The calls for bank circulation are so nu- merous that the mall can hardly be handled promptly by the clerks in the office of the Comptroller.
 Some of the amounts applied for are small,1 but they are scattered all over the country and it is believed will aid materially in relieving local preasure. The price of United States bonds was firmer today than for some time. show ing an increase in several classes of a half of 1 per cent, and indicating that the banks were in the market as purchasers.
 The fact that tomorrow. election day, Is a legal holiday In New York. viii offer time for further perfecting plans for mutual support which were well under way today.
 Grain for Export.
 It was stated today that the el6va- tor, boats and warehouses at Buffalo have S,600.000 bushels of grain and 500 car loads of merchandise and man. ufacturing goods. very largely for ex- port, against which drafts for gold could be drawn, the moment it is load ed on vessels. that are waiting at At- lantic ports for cargoes.