The Birmingham age-herald., 1907-10-28
Bankers Get Chance to Ease the Tension of OVsr-
 wrought Nerves
CONFIDENCE IS SUPREME
 THAT THE WORST IS OVER
Under the Guidance of J. p. Morgan Banking Affairs Have Been Right ed and cortelyou Returned
 to Washington.

New York. October 27.-The feeling among the banking authorities tonight that united action and wise counsels have already accomplished much in providing d solution for the financial problem with which they have been called on to dead during the last week. and that with TO- medal plans now further perfected the promise is strong for the maintenance of financial stability. Today was marked by the usual Sunday calm, which gave the financial leaders an opportunity to ease the tension of overwrought nerves exper- fenced during the last week. Most of them remained at home throughout the day, and there was a noticeable absence of those hurried conferences of recent days
 The departure of Secretary Cortelyou for Washington removed a conspicuous with President Roosevelt's strong support. as expressed in his letter made public last night Mr Cortelyou's presence in Washington was favorable to such fur ther governmental assistance as might be required.
 At the clearing house there was much evidence of activity in preparation for the issuance of loan certificates tomorrow This. however, was confined to the subor- climates. as the loan committee, which is tosnass. -alpoa collateral offered for the ceitincates did not hold d formal ses- sion.
 Waiting at the Banks.
 Anotier evidence of activity was the small knot of people gathered at some of the institutions where runs were in pro- sress last week, waiting for an advan- tageous position on the opening of busi- ness tomorrow. The indications are that banking institutions will not pay out large amounts in currency tomorrow except to meet legitimate requirements of their clients for current business. It mas Ions been the practice of trust companies and some of the smaller banks. in meeting cnerlls for considerable amounts, to draw checks upon the national banks. with which tlteir reserves are kept If they pursue this policy tomorrow, and until the end of the present crisis. it will not be a departure from their usual practice. Such checks under ordinary circumstances arc preferred to currency, and if currency i., demanded iit unusual amounts it will be refused unless evidence is given that t is required in good faith and for other piIr- poses than hoarding, to prevent which IS the main purpose of this step. a Currency will be paid on small checks where desired and to provide funds for psy-rolls and other legitimate and ordi- nary uses. It may be thought advisable to stamp checks Playable through clear ing house." as was done in 1893 The sus- pension Of currency payments at that time extended to all the banks and also tc the trust companies which were then a comparatively small factor in the sit uation. Little. if any. inconvenience re- suited from the payment of checks in- stead of currency. except in cases where there was special need for currency. Cur rency. at that time went to premium of a fraction of 1 per cent, and in some cases even as high as a full per cent. This was due to the fact that currency was refused even for pay-rolls, for the use of retail shops and for other pur- poses for which it was required.
 Situation Not So Acute.
 It is believed that the situation will not be so acute on this occasion and that currency can be paid where it is required for legitimate purposes and not for hoarding This system of check credit will operate in the usual manner and there will be nc inconvenience to the man who does not make special effort to obtain currency Checks drawn in payment of current obligations will be received for deposit by any bank and re- deemed through the clearing house in the usual manner, except that clearing house balances against the banks will be settled in clearing house loan cer- tificates instead of currency. man hay ing a bank account will have checks put to his credit as usual and can draw against them freely without interruption fy tho Of ral wi ha bank It is not believed that the dearth of currency will be such as to prevent those requiring small amounts. or not having a regular bank account, from ob- taining 1t.
 Form of Certificate.
 A large force of clerks was at the clearing house today preparing for the Issuance of loan certificates tomorrow. These are in 5000: $10O0O and $20,O00 de- nominations, and the following form:
 "This certifes that the (name of bank, has deposited with this committee secur- itles in accordance with the proceed ings of a meeting of the association, upon which this certificate is issued This cer- tiaeata will be received in payment of balances for the sum of s500O from any member of the Clearing House associa- tion."
 On the surrender of this certificate by denositing bank above named. the com mittee will endorse the amount as pay ment on the obligations of said bank, held by them and surrender propor- tionate share of the collateral securities held hereunder. This is, the form used in 1893, when these certificates were las availed of. At that time the certif- cates were of great benefit and aided materially in clearing the very serious situation then existing,
 one prominent banker pointed out that if could not be brought to the atten- ton of the country at large too strongly that the present situation is deali-g sole lv with the supplies of currency and that neither the business credit of the nation