East Oregonian : E.O. (Pendleton, OR) 1888-current, 1907-11-20
CLEWS IS PLEASED
NEW YORK FTNANCIER
SAYS CRISIS is OVER
Distrust Is Fading Away and the
Banking Situation Is Resumlng its
Former Normal Tone-Hoartiing Is
Overwhelmingly All OF the
Leading Banks Are Safe.

Henry Clews. the New York fl
nanciar whose finger is closely press
ed upon the financial pulse of the
country these days, and whose dag
moss is pretty generally accepted, says
of financial conditions in his regular
letter:
Confidence is reviving gradually.
Distrust is less acute than at the
time of the runs on financial insti-
tutions. although the shock then ad-
ministered is travelling across the
continent and starting the forces Of
readjustment In general business
with an unexpected sevirity. Our
chief trouble has been the demoral-
lied condition of credit.
The local banks are handling the
crisis with admirable skill and spirit,
but are still crippled by the unlver-
sal loss of confidence; and because of
a temporary breakdown in the credit
system are unable to do their full
share of the country's business.
1t is estimated that fully 95 per
cent of the transactions IN this coun-
try are settled by check or the trans
fer and balancing of credits; yet in
many instances the banks are now
obliged to refuse credit on checks for
deposits. the result being a much
heavier demand than usual for cur
rency in the making of payments.
Added TO this exceptional demand
is the tendency to hoard cash,
not only by individuals. but by
some of the interior banks. Nothing
could be more harmful at such a
time than boarding. This tendency,
1t is true, has been somewhat coun-
teracted by the premium of two to 4
per cent on currency, but the injury
is serious nevertheless.
The hoarder should be regarded as
an enemy of society and shamed out
of his folly. There are numberless
institutions all over the country
where the depositor's money is per-
fectly safe, while in stockings and
other hiding places it is very unsafe.
Many of our state banks have en-
viable records for safety and sound
ness. Our national banks are emf
nently safe; so, too, are our savings
banks and conservatively managed
trust companies. People must cease
their silly and injurious boarding, and
If disposed to invest at this time
should deposit their funds in bank
ing institutions of well-established
reputation. managed by men OF high
character and ability ana free from
all undesirable connections. There
are plenty of such institutions, not a
few of which are profiting largely by
this shifting of deposits from weak
to strong concerns, but they are not
among the class that seek public no
toriety
Extraordinary efforts for relief are
being made in all directions Many
millions of clearing house certificates
have been issued in various parts of
the pountry, irrespective of New York
city. We have already engaged about
$50, 100000 of gold-the best and
most natural form of relief--and the
national bank circulation is being
RAPIDLY expanded. about $4,000, 600
having been added in October alone
BY such means the banks have
been enabled to materially ease the
strain on credit, It is unfortunate
that this stress comes during the crop
moving time. but relief does not seem
far distant and the tangle is working
out its own solution.