The Cairo bulletin., 1907-10-28

. tensive scale been SO successful
4 met and panic seems to have bee
] successfully restricted For this tn
Clearing House Committee, Secretar
Cortelyou, anda small group of grea
financial leaders must be chief
thanked. BY clear-headed, coura
geous, and decisive action they hav,
undoubtedly averted a financial ca
Itaclysm. THERE'S in consequence tn,
; best OF reason for believing that The
j. worst Is now over. This does moi
mean that liquidation is ended. Or
the contrary, the tremendous con
traction which has been endured ia
the financial district threatens to ex.
tend with more or less severity
throughout thewhole country. The
tfull consequences of what has taken
place IN the laast few days cannot vet
| be entirely foreseen, but from now on
the liquidation promises to be con.
Quoted in an orderly fashion and the
country saved from unnecessary loss
and disaster by foolish panic. The
men who have stepped into tho
breach to stay the tide of apprehen.
sion are entitled to the strongest
thanks not only OF the financial com
munity but of the entire country
Especially wise was the determine. |
ton OF the clearing house committee |
to eliminate the speculative element |
from the banking situation The /
first step was to restore confidence
IN the banks. As long as these re.
manned sound and solvent the crisis
was certain to soon pass over. L
IS the speculative element In the
banking situation which has been4
largely responsible for the present
generalization. Some of our banks
md trust companies had fallen under
he domination of promoters and
REGULATORS, who haad neither knowl-
'dge, nor experience regarding SOUND
'anking methods, and had no bet
er object in view than to use these
Institutions for exploiting their own
fashionable operations. Absolute
Elimination of spectators from the
lrectorates of our banks and our
'ust companies is prime essential q
the restoration of confidence, and /,
'rtunately this fact seems to be re- d
snized by both the clearing housed d
and the great bankers uni b
whom control of the situation has n
Hen, Banking reform, however, t,
lould not rest here. Our hanks II
lould restrict their operations more L
richly to the legitimate functions 81
banking. They should be free of a.
suspicious alliances; corporate in. pl
fences should be closely guarded oil
ainst; sound principles should be a
adhered to, and higher II
'ndards of integrity in manage. bi
snt should be insisted upon by
ilnly expressed opinion. IN
But reform must not be confined
the banks. The trust companies Ia
We thus far escaped many of the WI
'traints which have tended to safe Id
in the banks and ii is just there NJ
ere lies the weakest spot In the We
lation. Trust companies are lack. ", ne
In any such association aas the =,
airing house, which not only Sc IA
es valuable cooperation in times ar
emergency, but also exercises n !.
oiesome and necessary, restraint 49,
IN their regular operations. Con. 49,
NEE in clearing house banks :.
not so much by the ~,
iodic visits of the national bank go,
miners as by the unexpected Wis
of the associations own cxamin No,
which act as a continuous safe bee
rd aud keep its members closely Ing
'rmed as to the general sound. NET
of each institution. The trust
lpanies have no such organiza.
. To very considerable extent
T operations are a mystery. and
occasional visits of the state ex. 'e'
ners are generally anticipated and
Jared for. The trust companies of
York should organize themsel.
as closely as possible upon the , .ui'
OF the New York clearing house. 80
should appoint competent ey. -.
lers and arrange 10 have them 80
a rhau -" i7"9' ~ lens
!, -, VS. '""il'Shies the
d themselves have a better En-,
Wedge of their general condition. IT,
be better able TO give assistance rh<
eesS 70 'iiose WHO are tran
i. or to withhold it from those nlov
b are unsound. Such an associ1. fen,
as this might have prevented rate
resent crisis. aceo
e stock market stood up splen. az a
against the recent storm. For Mors
ely. liquidation in the security Tehe
cts has strengthened the mark. matt
ainst further attacks. There Is Low.
no room for panic. The effect Rour
IS collapse has no doubt reached leh,
iimax in financial circles. and II for q
remains to be seen what the ef pool
VII be in Industrial and mer- heraE
p circles. Il is not TO be sun toma
that the process Of readiust- opera
IL complete. II Is likely to % the c
some time 70 come. Probably alton
may recovery NAV eBsne later ana