The Colorado statesman., 1907-11-02
BANK CERTIFICATE SYSTEM MAY
PREVAIL UNTIL THAT Au-
GUST BODY ACTS.
BUSINESS MOVES on
DENVER AND STATE BANKS WILL
PROBABLY HOLD EMBARGO
FOR FEW WEEKS.

Denyer-Just as soon as Congress
convenes steps will be taken to put
the national banks of the nation in le-
gal shape to meet any emergency that
may arise by reason of the shortage of
currency and the great demand for the
same caused by the upheaval in Wall
street. Some such legislation is asked
by the big houses in New York. Until
Congress has moved in this matter it
is not likely that the New York en-
barge on cash and paper money held
by the national banks will be removed,
and that the temporary plan of pay
ment by certificate of deposit issued
by clearing house, or, as in Denver,
by clearing house guaranteed checks,
will be continued. New York, which
led the way, expected to be able to
resume normal conditions next week,
but this is not likely now. The strain
was too severe. 1t will take time to
heal it.
AS a precautionary matter the Den
yer banks and state banks will very
likely follow New York, and continue
the present manner Of doing business.
1t is not at all irksome. Money is al
most as general as it was a week or
two ago. Merchants are not complain
ing. What little hardship may have to
be borne they are accepting for the
good of the whole. Workmen who
need cash receive cash. In other cases
the certified checks are passing every
where. There is a minority, very small
in every community that can see moth
ing but harm in every wind that blows.
This minority would have done, as
small percentage in New York and
Brooklyn and other cities did, that is to
say, they would have rushed to the
banks and gotten their money, had not
a temporary check been put upon this
class of depositors. But danger from
this insignificant class is passed. The
atmosphere is normal.
The united action of the big mining
men and the smelters in Colorado to
keep all the gold possible going to the
mint for coinage and the action of the
local mint in paying out gold coin for
bullion received have had good eff
feet not only in that state, but all over.
But Congress is expected to go to the
aid of the New York banks and enable
them to resume and when they permit
the use of the money held by them for
the banks throughout the country, then
the countrs; will return to the regular
routine.
AS showing the conservatism now
prevalent in New York, it may be well
to point out what was done in the case
of the Denver & Northwestern Railway
Company bonds. This company has an
electric line from Denver to Leyden
and Golden and is the holding company
for the tramway company. The COM
pany has been for more than a year
gathering in it's bond issues and mort
cages with view to making one COM
plete new issue instead of having them
scattered over different periods. Today
| S6,000,000 of these were to be refund ed
or exchanged, but although the holders
of the old bonds had agreed as far as
could be ascertained beforehand to ac-
cept the new issue in return for can
collation. of the old ones, still the
houses that were to make the transfer
| decided not to do so, just as a
precaution, for fear of causing
the slightest ripple on Wall street,
and so yesterday an advertisement ap-
peared in the Republican containing
notice that the exchange would not be
made at present. The bonds that were
to be taken up have fifteen years to
run. In SO far as Denver or the COM
pany itself is concerned there is nc
interest attached to this decision to
wait to make the exchange, it simply
shows that New York is extremely eau.
tious about monetary matters. All the
companies connected with the Denver
did shape and the bonds are looked
upon as among the best in the country