Decorah public opinion. (Decorah, Winneshiek County [Iowa]) 1895-1928, 1907-10-30
THE FINANCIAL SITUATION.
Banks Of the Country Issuing Clearing
House Certificates for Use in Place Of
Money Until Situation is
Adjusted.

The entire country is feeling the
effect of the acute financial situation
in Wall street which has been eagerly
watched for some time by the people
OF the nation. The extraordinary
gambling on the stock exchange
caused the suspension of several banks
in New York, and for time it was
feared that a great financial crisis
might result in grave detriment to
the business interests of the country.
The effect has been to squeeze out all
speculation. and to force stocks, etc.
down to their actual value. Prices
fell off until investors in Chicago and
the large cities have drawn their
money from the banking houses to
send to New York to purchase the
cheap securities, with the result that
the money of the country being tied
up in New York, they were unable to
supply the currency to meet the de-
mands of business. Consequently the
banks of the country have been COM
PEELED to place themselves upon a GER
tificate checking basis, in which con-
dition they will remain until the
situation is adjusted. There is no
doubt of the wisdom of this course,
in fact it has been compulsory
The action of the banks of DEBORAH
may be cited as the existing condition
throughout the state and country.
The Winnesheik County State Bank,
Citizens Savings Bank and National
Bank of DEBORAH have appointed a
Clearing House Committee from their
officers. and have each deposited with
this committee $50, 600 worth of their
best securities, making total of
$3.50, 600. Clearing House Certificates
amounting to $1,000 900 in denomina-
tions of $40 aud $40. have been issued
against these securities, each of
which is signed by the presidents of
the three banks, and these certificates
will circulate the same as cash, being
accepted as cash by the banks. bust
ness men and others.
There is not tho slightest occasion
for alarm. The simple fact is that
the banks of Chicago, Cedar Rapids,
Des Moines and other cities, who hold
deposits from the DEBORAH banks, are
unable to supply the currency to the
local banks as is their custom for
business from day to day, because
they in turn cannot get the currency
they need from Chicago and New
and the country are in better condi-
ton than they have ever been. Crops
are plentiful. prices have been IN
usually high, and general condition
OF unequalled prosperity exists. the
only difficulty being the fact that the
actual money is confined to the New
York banks, held there until the stu
alton adjusts itself
State Auditor Carol issued a letter
w pbC StotC anu say iABo DdlihS u1OA-
day, and in it he says he expects to
see marked Improvement in financial
conditions by the end of the week.
In it he states that lit is not a ques-
tion Of the solvency or soundness of
the banks, but their inability to Sc
cure the cash from Chicago or else.
where would make it impossible for
them to continue their cash payments
for any length Of time. If need be,
the savings banks, upon their savings
deposits, can, and should require
sixty days notice of withdrawal.
Inspire your people with confidence
that there is no danger of any loss
upon their deposits, and if the situa-
tion should grow so serious with you
that you are unable to handle it your
selves, notify the department immedi-
ately and we will furnish any relief