New-York tribune., 1907-10-30
PROSPERITY In SOUTH
WILL BRING IN GOLD.
Ne5o Orleans Exchanges Close as
Precautionary Measure.

New Orleans, Oct. 29.-That the South is
financially safe and in position to benefit greatly
the other portions of the United States was the
opinion expressed to-day by New Orleans bank
ers and business men. The immense exports Of
cotton and also sugar and rice are relied on
shortly TO bring in gold from abroad.
An index of the SOuth's prosperity the
amount of shipping at this port to-day. There
were fifty seagoing vessels in the harbor. and
in addition scores of river craft piled high with
sugar molasses. cotton and rice. The harbor
activity was all the more significant because 1t
followed on the heels of 4 months strike of ten
thousand levee men. In the last twenty-four
hours alone twenty seagoing vessels have
rived.
Partly as a guarantee for the unhampered
movement of the crop staples speculative ac-
tivity involving any unnecessary risks in other
lines of business was to-day suspended in New
orleans, both local stock exchanges closing until
Monday. The Cotton Exchange continued open.
The Louisiana Exchange will suspend all bust
ness without reservation. but on the floor of the
New Orleans Stock Exchange state and city
securities will be dealt in during the period
through which the temporary suspension is in
effect
Reports came in to-day from rural districts in
Mississippi. Alabama. Arkansas and Tennessee
that small banks have followed the lead of the
depostors from loss of money or confidence.
Following conference of New Orleans bank
ers, Charles Godchaux. president of the Whitney
Central National Bank, to-day gave out the
following statement:
New Orleans and the South can be Of great
benefit in relieving the situation throughout the
COuntryif if the East will assist by allowing some
of the currency deposited with it by the gov
ernment to come this way in order to move the
cotton and sugar crops The cotton movement
n iy4h of fha h.plx hara tD
supply the necessary cash. The banks buy
ing foreign exchange literally, getting New
York exchange in payment thereof but they will
soon be at a standstill as currency cannot he
brought down to supply their wants. If some
plan can be found to remedy this conditions i'm
New orleans and the immediate neighborhood
will be greatly improved This will also place
New York banks i'm possession Of foreign eX
change with which 10 obtain gold from abroad.
The sugar crop which promised to be large,
Is not a disappointment, and the yield OF sugar
per ton Of cane is fully up To expectations.
The decision Of the Clearing House here to
issue Clearing House certificates, to restrict the
daily Withdrawals of cash, and to enforce the
siNty-day rule for savings deposits, has met
with unanimous approval Of the community at
large
Henry b. Schneider. president of the New
Orleans Board Of Trade said
Conditions throughout the South, as reflected
in the finances and commerce Of New Orleans.
are most encouraging. The large movement Of
cotton through the ports Of New Orleans Gal
weston, Savannah Wilmington and Norfolk, and
larE" sales Of other commodities foreign
points. are exerting a healthful influence. and
we are most sanguine to the showing the
South will make for the year 1907
The Clearing House Association of Little
Rock, Ark, has adopted the rule that no bank
shall pay out over $50 day to any one de
positor Montgomery (AlaD banks decided to-
day to limit Withdrawals TO $25 a day for the
time being though any amounts can he paid
through the Clearing House There is money
enough 20 meet all the local demands. and much
more. but It was thought best TO provide against
outside pressure. The Mobile Clearing House
voted yesterday to issue certificates. limiting the
amount of Withdrawals and putting into effect
the sixty-day clause. Similar action was taken
by Mississippi and Texas concerns.