The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-10-29
SCARE IS over.
No Notable Developments in
the Financial Situation.
Stock Market Still Unsteady
But Without Excitement.
BANKS WILL REOPEN.
Several of Those Which Sus-
pended Last Week
Have Arranged for an Early
Resumption of Business.
in SMALLER VOLUME.
Runs on the Two Big Trust
Companies Continue.
Europe, Attracted by Low
Prices, Is Buying Stocks.
Have Arranged for an Early
Resumption of Business.
In SMALLER VOLUME.
Runs on the Two Big Trust
Companies Continue.
Europe, Attracted by Low
Prices, Is Buying Stocks.

new 4Ork, OcI. ZS-1ne HHdHClell Si1
uation was without notable develop
ments today and the abating interest
indicated that the public had practical
ly we'll gotten over its scare. The stock
market was little unsteady, but with
out extreme agitation. The announce
ment that the Imperial Bank of Ger
many had raised it's discount rate from
575 to 612 per cent in order to save its
gold holdings was not unexpected by
bankers here. 1t is thought quite like
ly that the Bank of England will follow
suit by raising its rate at the regular
meeting on Thursday.
Last year, when the United States
was absorbing English gold. the rate
was raised by the Bank of England at
q special meeting and it will be a favor
able sign if the matter is not taken up
until the regular weekly meeting of
the directors. The scramble for gold is
such at all the financial centers-Lon-
don, Paris, Berlin and New York-that
the metal will go to the highest bidder,
and under present conditions New York
is likely to appear for a time in this
role.
Her ability to get gold is due not only
to the need for it, but to the large
credits which are being established by
the movement of the crops and other
notably wheat, cotton, cop
sale of American securities. These in
huences are usually more potent than
artificial measures to obtain the yell
low metal. 1t is believed this will be
effective to place sufficient gold at the
command of the New York market and
to maintain credit and cause the re-
sumption of banking operations in the
usual manner within a few days.
Runs upon the banks here have
practically ceased since the banks
adopted the policy of paying large de-
positors in checks.
Some transfers of excess are being
made from the smaller to the larger
banks, which resulted in adverse bal
ances against the former but strength
ening the ability of the larger insti-
tutions to meet pressure and to sup
port the market.
The news that the owners of cotton
in the south are beginning to release
it without holding out for higher prices,
and that break in the price of wheat
has brought large European orders, is
regarded here by bankers as significant
of the powerful aid which the south
and west are thus bringing to the fin
ancia1 situation. The cotton movement
would be large one when in full op-
GRAFTON and usually taxes the resources
of the southern banks to furnish all the
money required. The banks are ex-
pected to buy cotton bills drawn upon
London houses and these bills are then
bought by persons having obligations
to meet in Europe.
If there is an excess of cotton bills
offered, however, above the demand for
funds to make payments abroad, the
tendency of the upward movement will
be to increase the volume of imports
of gold.
The wheat, tobacco and meat ship
mcnts operate in substantially the same
manner so that if the movement of our
great staples continue to accelerate, the
obligation created abroad to this coun-
try will be so large that it will be prac-
N,ically impossible for the European
Etate banks to retain their gold. given
by fixing their discount rates at max
imum figures.
Banks to Reopen.
New York, Oct. 29.-Great assist
ance in relieving the financial strin-
gency is expected to result from the
large engagements of gold for import
made yesterday and from the further
large imports which it is believed will
be made within the next few weeks.
The movement of American crops to
European markets. together with the
revival of demand for copper
abroad will give the United States
and these can be availed of in bring
ing in gold. it is confidently believed
to the fullest extent that may be
necessary. 1t was announced today
that several of the banks which were
compelled to suspend last week have
about perfected their plans to reopen
for business. President Montgomery.
of the Hamilton bank. a Harlem insti-
tuition, which closed last week, said
today:
This bank will resume business in |
a few days, not later than Monday
next in any event. 1 understand also
that the Twelfth Ward bank will re-
sumo in a few days"
The runs on the Trust Company of
America and the Lincoln Trust COM
pany continued today, but in dimfn- |
ished volume
The announcement of the increase
of the rate of discount by the Imperial |
Bank of Germany from Il to 6 Il per
cent, was of somewhat unfavorable eff |
feet on the London stock market as |
indicating that there will be no ex-
pansion of credit at present for specu- |
lative purposes. Notwithstanding this
however. American securities in Lon
don held firm. The only noteworthy
weak feature in London was Canadian |
Pacific, which declined 2%. AmaIga- |
mated Copper advanced e, Anaconda |
1 Is, Atchison %, st. Paul Il, Illinois |
Central 1 n and Northern Pacific "a
Union Pacific was unchanged. United |
States Steel common was IS lower and |
United States Steel preferred u |
higher.
Operations were much restricted