The Forest Republican. [volume] (Tionesta, Pa.) 1869-1952, 1907-11-06
Strengthens Trust Companies
After Recent Severe Run.
Advance In Bank Of England Discount
Rate Will Not Prevent Flow of Gold
to This Courtry-New York Bank
ers Determined to Strengthen Their
Position Even at a Loss.

trust cOmDdny--Which have been sub
jected to the most severe runs during
the last two weeks. Yesterday was
one of doubt and conflicting rumors
and the fact that 1t passed without ad-
verse developments is an evidence
that the worst Of the situation is prob
ably over.
At late hour Monday morning an
agreement was reached, largely
through the influence of Mr.. Morgan,
by which the trust companies will CO.
operate in future for their mutual pro-
lection and the directors will lend the
assistance Of their personal fortunes
to meet immediate necessities.
The assets of the two threatened
companies were carefully gone over
by experts on Saturday and Sunday
and both of them were found TO be
solvent, with considerable surplus
after paying all claims and providing
for the capital stock. Under the cir
cumstances it was thought advisable
by the leading capitalists to support
them cordially provided they adhere
to thoroughly conservative methods
and direction in future.
The achievement of these results,
with the steady upward movement of
the stock market till near the close, is
believed to mark the turn of the
crisis. The loss Of s3O,OOO,OOO in cash
by the Clearing House banks, accord
ing to their Saturday statement, de-
spite the S3O,OOOO0O which had been
poured into their tills during the week
from the treasury. was expected to
have a disturbing effect.
Gold Engagements of $32,oOO,ooo.
1t was worse showing than will be
possible again in the face of the
heavy arrivals of gold Gold engage
ments since the beginning of the pres
ent movement now amount to $32,-
100000, which will more than bridge
the loss in surplus reserve last week.
The cotton bills are not yet fully
available because shipments are slow
and the bills themselves are subjected
to considerable scrutiny before they
are taken.
The fact that the New York market
bid a sufficient premium for gold to
absorb 100000 from the open mar
llct and to withdraw an addition
al GiS3,000 from the Bank of
England, indicated that the increase
in the discount rate Of the Bank of
England, made at a special meeting
yesterday before the opening of the
New York market, from 5h to per
cent, was not sufficient to check the
gold movement.
Hence arose much talk in London
that the rate would be advanced to {
per cent. al the regular meeting of the
board of governors on Thursday.
This will he the highest rate attained
for many years, but with $32, $50, 900
in gold already on the way to New
York or engaged for shipment even
higher rate at the Bank of England
would probably not injure materially
American credit. 1t is still believed
that the Bank of France would aid
the Bank of England by loans on sterl-
ing bills at Paris if the situation re-
Quired 1t.
Calls For Bank Circulation.
Reports from Washington indicate
that the national banking situation
throughout the country is sound and
that the efforts of the comptroller of
the currency to get notes into circula-
tion are meeting with considerable
success. The calls for bank circula-
tlon are so numerous that the mail
can hardly be handled promptly by
the clerks in the office of the comptrol-
Ter.
Some of the amounts applied for are
small, but they are scattered all over
the country and it is believed will aid
materially in relieving local pressure
The price of United States bonds
was firmer than for some time, show
ing an increase in several classes of
half of per cent, and indicating
that the banks are in the market as
purchasers.
Accumulation of American Products.
1t was stated today that the ele-
rators, boats and warehouses at Buff
falo have 100000 bushels of grain
and 500 carloads of merchandise and
manufactured goods very largely for
export, against which drafts for gold
could be drawn the moment their
grain and goods we're loaded on yes
sells waiting at Atlantic ports for car
goes.
The magnitude of this accumulation
of American products is indicated ry
the fact that the railways find them
selves unable TO move it to the sea-
board, Notwithstanding the enormous
development of traffic facilities with
in the last few years.
The New York Central lines have
increased the number of their locomo-
tives 81 per cent within the last few
years and the freight equipment has
been increased 67 per cent. at an ex-
pondinre of over Sf40,000,0OO. Other
lines have made large increases but
their combined facilities are subjected
to severe strain in getting products
from tho Central West TO the sea
board.