The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-10-27

Saturday. e
Important Remedial Plan.
First of Importance in the remedial
measures was that of the Clearing
House Association in voting to issue
clearing house loan certificates for the
use OF the banks themselves in settling
their daily balances at the clearing
house. Plans were formulated to eX-
tend the benefits of the clearing mouse I
certificates to the trust companies. as
we'll as to the banks. which are at
present members of the Clearing House
Association.
Another extremely important feature
OF to-day's news was the announce
ment by the National City Bank that 1t /
had engaged $5000,000 in gold for
import. 1t Is believed by bankers and
exchange brokers that this engasement
liz the beginning ofswhat will PROBABLY
be continuous movement! OF gold to
New York from abroad.
The exchange market; is very "a x
vorable for the importation Of gold,
and 1t is believed that no difficulty
Will be met with In n.securing the metnl
from Europe SO far as may be needed.
To Aid Trust Companies.
Another step was taken, also OF
first Importance. designed to offset
tile unfavorabIe effect, which might
be produced by the fact that the
clearing house banks were in po-
sition to obtain certificates while the
trust companies were left out of
the arrangement. The fear that the
trust companies would he ,infav " 80 'HiS-,
affected by such decision, was ono
of the influences which led sew al .
members of the clearing house com
mittee to oppose the issue OF certifi-
Gates. The step taken to Offset this
danger was the presentation of
resolution by the clearing house cons
mittee to the meeting of the associa.
tion. to the effect that trust COM
pnnies should be admitted to tho
clearing house. III
Thus far there have been no appli-
cations by the trust companies for adj
exact conditions on which they might
| be admitted have not been fixed.
While the action taken to-day is not
| Immediately effective-so far as it re-
| lates to trust companies-it shows a.
Willingness of the clearing house banks
Ito cooperate with trust companies.
/ which greatly relieves the situation
land removes the danger which some
| have feared-that each individual trust
company would be left TO shift for
Itself, while the associated banks in the
1 clearing house stood firmly together.
The effect of the decision to issue
4 lclearing- house certificates has usually
Ibeen to restore confidence to large
degree and thereby to diminish the
ipressure which might logically be an-a
lticipated in view of the previous de-
\ mand for currency. The cash left from
4 the banks will then be available to q
K larger extent to meet the ordinary de-
mands for currency from depositors
Another Historic Crisis.
The largest issue of certificates UP
4 to the present time was In 1898, When
the total output was S41,490,000, and
i the maximum outstanding at any one
4 time was $3S,9SO,000. The first issue
was made in that year on June 2lst
.Ijust before the announcement that the
i |goyernment of British India had sns-
Ipended the free coinage of silver. and
d fear spread that 1t would be impossible
to maintain the value OF the silver dol-
4 lar. 3
Il No such menace faces the money
4 market at. the present time, and under
1 the operations of the gold standard
law the accum1ulation 1ll OF gold IN the
!. Treasury. including that held against
Z gold certificates, now stands at s9ss,-
1000, 900, which is the largest gold stock
ilin the world. II Is not believed that
1.-THE demands OF the present occasion
: for certificates will be large. @
Specie Holdings of Banks
The clearing house banks of New
I York City showed to-day specie hold
|ings Of $196,4a6.000, of which nearly all
was In gold. and legal tender holdings
q of $5S,2S3,70O. These items showed =
decrease of s12.ooo.0Oo In the bank
statement of to-day, as compared to
Ithat Of week ago, but the total re-,
81 serve on hand stood at s264, ,1Oo.10 90,
. which was only s1,233.so0 below the
Illegal requirement OF Is per cent
u While decline OF the reserve beloN
1.-the legal limit is always a. subject ot
i lremnrk, 1t Is not infrequent during tNe
erop-moving season, and stu leaves
so large u fund OF cash at the com
!, Imand OF the banks that under ordinary
: conditions so strlning deficit as that
/ of to-day would not excite any, uneas'
= iness. Il,
The Indications are that sha cash
! reserves OF the associated banks wih
/ he kept substantially Intact hereafter
by the importation OF gold tue
= Bank OF England decides TO raise ts
: discount rate at the regular board
!, [meeting next THURSDAY or earlier tpis
!, may check to some degree the move,
ment Of gold towards New toFks WY