The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-10-26

new 1DTk. OCt. finOthcI
wracking day has passed, but the
financial institutions of New York
have shown extraordinary power of re
sistance to the pressure put upon them
While 1t is true that several minor in
stitutions have been forced to close
their doors. yet two things should be
said about them.
First, that the amount involved was
not so great as to exert any marked
influence on the general situation, as
these banks were located in residential
quarters and did not come into touch
with the larger financial institutions or
the metropolis; and, second. there is
every reason to believe that these
banks and trust companies are entire
~1y solvent, and their difficulties will
prove to be only temporary, and are
due entirely to inability to secure
ready cash on the gilt-edged securities
i'm their vaults. OF course, the cessa-
ton of these companies caused trouble
J to many people, but not so great as II
might SEEM as the deposftors are for
the most part located in the well-to-do
quarter of the city, many OF whom are
people of wealth, who have suffered no
great inconvenience.
Savings Banks Invoke Law.
In the light of the commercial ex-
element. the savings banks thought 1t
wise to put into effect the rule requir-
ing thirty to sixty days notice for the
withdrawal of deposits. This will pre-
vent the withdrawal of money which
would otherwise be put in safety de-
post boxes. The savings banks, If
they continued to make payments,
10 1hf4 To trrith n w g
from national banks, thereby causing
an additional strain on the general
banking situation. There was not the
slightest hint that any of the savings
institutions was in anything but the
soundest condition, and it was pointed
out that the savings banks of this
state are so restricted by law in invest
ing their money that there can be no
question that all of the securities in
their possession are of good value and
readily salab in normal times.
Closed Institutions.
The Institutions which closed their
doors today with the sums due depos-
itors. We're:
The United States Exchange bank,
Harlem, $500 900: International Trust
company, about 100000; the Borough
Bank of Brooklyn. $4,000. 600: the
burg Trust company, Brooklyn, $780,
900, and the First National bank of
Brooklyn, $500 900.
The First National bank of Brook
lyn. the Williamsburg Trust company
and the International Trust company
were allied institutions. None of these
companies had any important business
connections with the larger banks
which are representative of the city's
financial affairs.
Favorable Features.
On the other hand. a number of ia
vorable features marked the day. The
Trust Company of America and the
Lincoln Trust company, the organiZa
lions which have suffered most from
runs. have been slowly paying out to
their depositors and closed today with
all demands having been met. In the
case of the Trust Company of Ameri-
ca. the run was well nigh spent. as the
great bulk of depositors have been paid
off. At the close of business there
were a good many in line at the Lin
coin Trust company, but also there
was marked reduction in the number
of anxious depositors.
Wall Street Supplied.
The most favorable incident of the
day was that the stock exchange was
provided with funds ample to meet its
Immediate necessities by money pool,
headed by ]. p. Morgan, which sent
about SIS. 100000 to the exchange dur
ing the afternoon. The stock market
lad held relatively firm all day, but
when the pool of money was offered
in the loan Corner, there was an i'm
mediate upturn of prices and the mar
ket closed strong at the best prices of
the day. AS all of the loans made hold
over until Monday, the stock exchange
situation will not be a factor in the
problems that the bankers may be
called upon to solve tomorrow.
SoIveney Affirmed.
A very encouraging feature of the
afternoons development was signed
statement by Clark Williams the
newly appointed state superintendent
of banking, affirming the solvency of
the local Institutions.