The Washington times., 1907-10-27
CLEARING HOUSE
CERTIFICA TO
STRENGTHEN BANKS
Association Decides to
Adopt Strong Measures
and Relief Is Certain.

ANO AOANtAB -JGts los--fhlln me QIitl
nlous decision Of the New York Clear
ing House Association today to issue
clearing house certificates for the settle
nent Of debit balances by the banks,
leading finanoiers believe that the final
steps have been taken to restore condi-
tions in financial circles to their wonted
calm.
The issue OF these certificates viii re-
lease for general circulation a large
SUM OF currency, and the scarcity OF
money is-ncw the only cloud that lin
gers on the horizon.
Of scarcely less Importance as tend
ing 10 restore confidence was the intro
duction Of "a resolution in the meeting
of the Clearing House Association pro
vidiug for the readmission Of trust
companies to membership in this asso-
ciatiOn- This viii place the trust com
panies under the rules OF the clear
ing house. and tend TO prevent re-
currence OF the situation which brought
about the slump last week.
News Of Gold Imports Aid.
Announcement of. the early arrival OF
gold imports from Europe further i'm
proved the situation today. There IS a
balance OF $50, OO0. 900 In our favor in the
trading between Europe and the United
states, and an Influx Of tie yellow
metal from Europe at this time will
serve to hasten the return TO normal
conditions in the financial world.
Heidelbach, Ikelheimsr & Co., OF 81
William street, today announced that
the frst OF the gold imports, 81, 600 900 In
amount VIII arrive here Wednesday.
With all these agencies operating 70
restore confidence, the reaction set in
Friday continued undated today. and
the sun began TO shine on Wall Street
again. Except for the suspension Of the
Terminal Bank, in Brooklyn, a small
Jenkins institution. whose closing had
no effect on the situation. every report
that went out over the ticker was Ia
yorable.
Stock Market Firm.
The stock market continued firm and
money was comparatively easier. The
Trust Company OF America, the Lincoln
Trust. and the other institutions which
were impeTiled by runs rode the storm
md their officials announced at the close
or the day that their concerns would
resume business Monday IN capital
shape TO meet any demands that might
be made upon them.
II IL understood that for the reaso,.
that Europe might get the idea that
conditions are worse in New York than
they reall are. J. P. Morgan and bauk-
ers IN friendly association with them.
the issue Of clearing house Ger
dheetes, but gave way to the majority
after the matter had been thoroughly
threshed out.
a committee headed by Vice President
Cannon, Of the Fourth National PsnI-
was appointed to arrange the details for
the issue. Banks will be permitted 70
avail themselves OF the certificates TO
the amount Of IS per cent Of their debit
Financial men almost with
)ut exception declared after the adjourn
nent OF the meeting that this measure
will undoubtedly bring to the situation
he relief that Is needed TO restore CON
idence and stability to the market.
The final act Of the meeting Of the
clearing house association was the adop-
ton Of a resolution thanking Secretary /
1f the Treasury COrtelyOu and J. Pier
1Cnt Morgan for their services durJn.z |
he time Of the crisis.
Surplus Was Wiped Out.
Inc TeBuNr weekly bank statement J
ssued today showed that the surplus
which the banks had at tie close OF
ast week was entirely wiped out by the l
hurry, and that a deficit of 81. .2S3. 800 was 4
'reated instead. A surprising feature. of 4
he statement was an increase OF loans /
= $l0,S64,7Oo. II had been expected that 1
he enormous liquidation in the market 4
Turing the week would have resulted in /
l considerable decrease IL this item
While the skies were clearing in Wall |
Street, frightened deposltors in. the Ne
hanics and Traders Bank. 900 Broad /
way, with twelve branches in Manhat- /
an and Brooklyn, and in the Broadway /
Trust Company, Broadway and Eighth /
street, made a descent upon the two /
aud there were lively with 4
irawals for some time. All demands 1
we're met by the two concerns how
.ver.
In a run on the Northern Bank Of /
Cew York Broadway and Fourth /
treet, there was so much disorder that /
he police had 20 be called.
The Broadway Trust Company adopted /
rule that those who were withdraw /
nC funds TO pay of employ es should /
ave the first call today.
General approval was given to the dc-
Ion Of the presidents Of the savings /
ranks, all OF which today put into ef-
ect the rule which COmpels the fling |
f sixty days notice OF an intention to |
funds.