Los Angeles herald., 1907-11-05
BIG BANKS
AID TRUST
COMPANIES
]. p. MORGAN AND ASSOCIATES
HELP TWO CONCERNS
GOLD sEcUREpARRoAD AMOUNTS
TO $s2,ooo,ooo
General Financial Condition Seems
EncouragIng-Much Discussion
Regarding Extra Session
of Congress
BY Associated Press.

By Associated Press.
NEW YORK Nov. 4.-The buoyancy Oh
the stock market today reflected the ui.i.
mate decision of large bankers to support
the two institutions-the Trust Company
of America and the Lincoln Trust COM
pany-which have been subjected to the
most severe runs during the last TWO
weeks.
The day was one of doubt and CONNECT
ing rumors, and the fact that II passed.
without adverse development is an eVi-
dence that the worst OF the sltuatioh 10
probably over. At late hour this morn
ing an agreement was reached largely
through the influence of Mr.. Morgan, py
which the trust companies Will Cooperate
in the future for their mutual protection.
and directors will lend the assistance oh
their personal fortunes to meet immediate
necessities.
The assets of the two threatened COM
panies were carefully gone over by ex-
perts on Saturday and Sunday, and poth
of them were found to be solvent. with
considerable surplus, after paying all
claims and providing for the capital STOCK.
Under the circumstances 1t was tnougnt
advisable for the big men to support them
cordially If they would adhere TO tnor-
ouyhlv conservative methods and direction
in the future.
S32,0oo,oo0 Secured
Gold engaeements since the beginning
of the present movement now amount TO
s32. .OOO. 900. which will more than bridge the
loss in the surplus reserve last week. Inc
disturbances which are sweeping over the
exchange market and arousing concern IN
foreign markets were indicated TO-DAY py
the rise of foreign exchange in New York
considerably above the point at which
gold could be prohtably imported
The fact that 1t is st..l coming this way
Indicates the determination OF New YORK
bankers to strengthen their position even
81 a IossI The high rate for bills was
caused by the demand for exchange TO
cover the arrivals of gold
The cotton bills are not yet fully availa-
ble because shipments are slow andsthe,
hills themselves are subjected to consid-
cradle scrutiny before they are taken
The fact that the New York market bid
a sufficient premium for gold to ABSORB
eso0.O00 from the open markeet ana 10
withdraw an amount of 963s.OOO from tne
Bank of England indicated the increased
discount rate of the Bank Of England,
made at a special meeting today before
+he opening of the New York market,
from 81 to 6 per cent, was not sufticient
to check the gold movement
Hence arose much talk in London tnat
the rate would be advanced to per cent
at the regular meeting of the poaro OF
governors on Thursday. This will be the
highest rate attained for many years, but
with s23, 900. 900 in gold already on the way
to New York. or engaged for Shipment
even a higher rate of the Bank OF Eng
land would probably not injure America.
National Banks Sound
Renorts from Washington indicate the
NATIONAL banks throughout the country are
sound. and the efforts of the comptroller
of the currency to get notes into circula-
tfon is meeting with considerable sue
cess. The calls for bank circulation are
On numerous that the mail can hardly De
handled promptly by the clerks IN the
office of the comptroller
In some of them the amounts applied
FOR are small, but they are scattered all
over the country, and 1t is believed Will
aid materially in relieving the local pres
suro The price of United States bonds
was firmer today than for some time.
sbovvine an increase in several classes OF
u to per cent, and indicating that the
hanks were in the market as purchasers.
From Boston came tne gratifying news
that the legal reserve of the clearing
house banks had lost only H,751.75 during
tha mast week and stood considerably
cent. The fact that tomorrow, election
dav. is a legal holiday in New York. VIII
afford time for perfecting further plans
for mutual support which were well under
way today.
Much Grain Stored
IT was stated today that the elevators
boats and warehouses at Buffalo have
400 600 bushels of grain and 500 carloads
of merchandise and manufactured goods,
verv largely for export, against which
5rafts for gold could be drawn the mo-
ynent it is loaded ON vessels that are wait
ine ut Atlantic ports for cargoes.
THE magnitude of this accumulation OF
American products is indicated by the fact
tbat railroads find themselves unable to
MOVE it,to the seaboard. notwithstanding
the enormous development of traffic facil-
,,ies within the last few years.
Tbe New York Central lines have in
.~aased the number of locomotives 81 per
o,r,t within the last few years, and the
Sre,rht equipment has been increased 81
nsy cent at an expenditure of over sl4O,-
Other lines have made large increases,
M their. combined facilities are subjected
~ severe strain in getting these accumu-
,sted nroducts from the central west to
The markets.