Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1907-10-21
MERCANTILE BANK
DEBIT BALANCE
When Made Known, Gave Favor
able Sentiment on Banking and
Business Circles Setback.
THE AMOUNT is SLsoo,ooO.
Methods Eliminated from situation Of
Last Dccadc-Acl,nowlcdccd That
Crisis Was Serious One

Now York. oct 2I-The most fav-
orable sentiment n business and
banking circles resultant from yestcr-
days changes in various bank man
agements and the promises ~ sun
port made by tho Clearing House ass
ISOLATION received something Of @ set
ack today when 1t became known
that the debit balance Of the Mercan-
Tile Natioual bank, at the clearing
house was s1.9oO,00O.
The debit balance OF the National
Bank OF North America vasSS5O, 600.
These figures indicated that heavy
Withdrawals from the two banks were
being made and the totals were re-
feared TO hy one member of the Clear
ing House association as "unexpcct-
cdly large and disconcertng"
10 was announced en- "a short time.
however. that the Clearing House as
ISOLATION would extend assistance to
the Mercantile and National Bank Of
North America.
Seth NJ. Milliken the newly elected
president Of the Mercantile National
bank, said today that counting out
tho Hcinze-Morse loans. the assets or
the bank are $40 for every dollar Of
liability and that the loans in ques-
ton are Of value.
stocks today opened strong and
higher. all the market leaders particl-
nating an the rise
sundays meeting OF bank presi-
dents succeeded in finally eliminating
The Hciuzo. Morse and Thomas inter-
ests on certain Of the clearing house
banks.
Besides choosing new officers for the
banks in question, and announcing
that each was in a solvent condition
a fuud OF $4,000. 600 was pledged pE
"a score Of individual banks 20 extend
aid 10 those banks and render such as
sistance TO meet their depositors as
the clearing house committee may
think necessary.
The deposits OF the banks represented
al the Sunday conference amounted 10
$3.50. 600. 900. The men. 10 In number,
every one a practical banker ueoiusu
upou the measures for eliminating the
interests which have been under crit
icism. which measures, later In the
day were carried out.
The methods that have ben elimi-
mated from the local banking situation.
% is stated are = development of the
last decade These consist Of buying
Of n bank. then putting up the stock
representing that control as collateral
for funds TO buy control OF another
bank. and continuing the process with
banks and trust companies. so that
the result is . pyramid controlling
chains" Of financial institutions and
their deposits. The crisis, II Is declar-
ed. was a serious one, but the cure
extended is expected TO be complete
Manager Shearer. Of the Clearing
House, said today that that institution
had the situation under control: that
an the undesirable elements had been
eliminated, and that from this time
would begin new era In banking IN
New York. II was officially denied that
II would be necessary to issue clear
ing house certificates. In order to
secure support f0v the banks. which
have been under criticism
United Copper, a Heinze security. ad-
vanced two points today from ~ to 9i4
Seth NJ. Milliken, the new president
Of the Mercantile National bank,
questioned as 10 loans made to +. A.
Heinze and Charles W Morse said IL
was expected that they would repay
them as soon as they were able.