New-York tribune., 1907-10-25

viii be ready this inorninS to meet any further
demands from deqosiioTs.
Two small state banks and a savings bank
tr Harlem closed their doors. the last institution
..vaIng itself OF the tlirty-day closing privi-
lege: bat taes- failure to continue payments had
apparently little adverse effect sentiment
There were of moderate proportions on the
Lincoln and Fifth Avenue Trust companies.
Secretary CortelyOu paid the highest Of trib-
utes last night. in speaking before six hundred
members of the Graduates Club, TO the men
who have come 10 the rescue of the financial
situation in the last few days He went on to
express his absolute confidence in the stability
Of conditions as they stand and in the
ability of New York and the whole country to
weather any future difficulties.
Il have faith said the Secretary. in the
general stability of the business interests of
this country. ! glory in the display Of high
courage and splendid devotion to the public in
terest Of many prominent in the business
life OF this city. The very fact that we have
been able TO come. in the last few days. through
+ time Of such stress and such excitement best
witnesses what is back of and in support OF
the stable things, the interests of business and
the interests of the people in this great COM
munty 1t behooves at this time TO exercise
in e conspicuous degree the qualities OF COM
mon sense There is every reason TO be hopeful
and every reason 10 show forbearance at this
1ime.
we must go on with determination and show
10 all that what is weak shall be strengthened;
that what Is uuclean shall be purged, and that
what is criminal shall be punished. We must
show the absolute determination on part to
do this necessary work"
The Sub-Treasury received S10O00G00 in
cash from Washington yesterday morning. The
shipment was very bulky, consisting Of bills of
all denominations largely small ones, in order
80 meet every demand for small bills. This per-
,nitted Secretary Corteyou 10 deny reports that
+he supply of small bills was not sufficient TO
meet current needs.
NO CAUSE FOR ANXIETY"
Secretary Cortelyou said later in the afternoon
70 the reporters: THE situation seems 10 be
steadily improving It does not seem TO me
that there need be practically any cause for
anxiety"
The Secretary spent most of the day in ex-
amining and passing on the collateral offered
by banks which made application for part of the
s25.0000o0 government money made available
by him for deposit in relieving the financial
crisis. 4 considerable part of these funds, 1t is
said. was turned over to the mercantile banks,
with the result of relieving to some extent the
stringency in the time money market.
1t was reported last night that the reason Sec
setary Cortelyou did not place more of the
$25.o00.o00 of government money in the banks
yesterday was that several of the institutions
had difficulty in putting UP securities accept
able to the government The Treasury Depart
1nent requires as collateral for such deposits Sc
curities in the list acceptable for New York and
Massachusetts savings banks. Some bankers
had hoped that the Treasury Department would
not be so strict usual in its demand for
cuTites of certain grade acceptable coll
lateral for giving deposits but in this they
disappointed.
The procedure followed yesterday was for the
banks 10 obtain the government money by put
ting up acceptable collateral. Then the banks
lent the money to the trust companies on col
lateral which passed by the Morgan COM
mittee. Here. too, there was slight hitch at
times, the trust companies were not always
able 10 furnish collateral which the Morgan
committee would accept. Nevertheless, in spite
Of some slight delays, the plan worked admir-
ably in most cases.
\ Secretary Cortelyou, on his return late last
II night TO the Hotel Manhattan was asked how
much OF the S25.O00O00 of promised govern
ment funds he had distributed yesterday TO the
national banks. He said that all Of it had not
been given out, but that all that was needed
was placed in the banks
AS TO the refusal of securities as coIIatar.,
he said that the Treasury Department was all
ways refusing collateral more or less but that
the bankers now knew pretty well what sort
oI securities the government would take Two
'noTths ago he said. when the government ad-
Nanced money to the banks, it refused a lot OF
securities offered. and it was the usual thing
1or II TO be declining some that were presented
secretary Corelyous manner gave the I'm,
preston thai while he considered the situa
non as growing more hopeful he did not wish
10 be too optimistic This impression was sun
ported when he said. in reply to questions tbat
he expected TO remain in the city tomorrow AT
least He could not tell whether or not he
would be able TO return TO Washington to-,nor
row night
As to the money that was len. YESTERDAY tv
liz banks out Of their own reserves. besides the
money they got from him. the Secretary said
mat The banks used by no means all that they
had available for such purpose He did not
think the amount thus given out exceeded 500
100000. He would not tell how much Of his
promised S25.Ooo.0OO he gave out.
COLLATERAL sCRUTTNIZED
Not few Of the trust companies. fl is under
stood were disappointed In that the securities
They offered did not pass the Morgan commit
Ice as satisfactory collateral. but many OF the
banks which have been navigating carefully in
The present stormy waters and have stored I'D
large reserves Of cash, did. # is understood.
lend large amounts of their holdings 70 the
trust companies that wanted IT and thus eased
the situation in many quarters These banks
also Tent lot Of money yesterday to others
than the trust companies.
ihere were yesterday as on Wednesday lnapz,
callers on the Secretary. who arrived at the
Suh-Treasury at 1925 o'clock in the roorning
and stayed there until about Z o'clock in tho
evening on his arrival at the Sub -TreasuIy