The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1907-11-08
SAN FRANCISCO
CONTINUED from Page one.)

Local bankers express the opinion
that the furry is only temporary and
will not seriously affect the business
of this city, though it will inconven-
fence the public for a time.
P. N. Lilienthal, manager of the An
glo-California Bank, made the follow
ing statement yesterday concerning
the situation:
THE trouble that has come to the
Safe Deposit will only affect its own
depositors Its operations of checking
and depositing were handled by a
clearinghouse bank exactly as they
would be handled for a mercantile con-
Germ, and checks were only paid
against depositors to it's credit, so that
none of the other San Francisco banks
are in any way affected by the trou-
BILE.
There is no doubt that the enor-
nous amount of gold now on the way
from Europe, and due in New York by
the end of, this or the beginning OF
next week, will stem the tide of hys-
terra, and bring people to their senses.
This money is due America for all
kinds of exports, and at whatever cost,
has to be brought to the United States
to enable the clearinghouse all over
the country to withdraw the existing
restrictions, and resume ordinary
banking methods. We think another
two weeks, and perhaps sooner, will
put us all back to where We we're a
month ago, and in a condition which,
in California and other adjoining
states, is most prosperous"
I. w. Hellman, president of the
s-Fargo-Nevadan National Bank,
and of the Union Trust Co., said:
There is not the slightest cause for
alarm. Our banks are perfectly safe
that is, all banks which are managed
conservatively and with judgment.
Banks and bankers involved in specu-
lation will suffer, here as well as else
where"
r. NJ. Tobin, secretary, of the Hi
hernia Savings Bank, said last even
ing:
Business was conducted at our bank
all day as usual there was nothing
out of the ordinary, not a ripple OF
excitement. People drew ordinary
amounts, and others deposited. It was
a quiet, uneventful day"
HEINZE CAUSED 1T.
The following statement was issued
by George w. Peltier, president of the
California Bankers Association, last
night:
THE beginning of the difficulties
arose from the Heinze failure in New
York city, resulting from Heinze's en-
deavor to corner United States Cop
per stock, and being caught. Unfor-
tunately Heinze was a plunging bank
err, and three or four years ago he took
over the control of a string of CONNER
ciaI banks in New York In his en-
deavor to pull himself out of the cop
per corner he involved his own insti'
buttons. From his bank it went to the
trust companies, in which some OF MS
associates were interested. General
distrust followed in New York, and it
took the efforts of the greatest tinan-
ciers to correct the situation. 1t, how
ever, placed New York city on a clear
ing-house payment basis, which means
that the bankers of New York refused
to ship money out of New York to
other cities. This condition became
acute and permeated Chicago, Phila-
delphia, Boston, st. Louis, Kansas
City, Denver, Salt Lake and even went
as far South as New Orleans. In fact,
every large city in the United States
was forced to go on clearinghouse
basis, because the Eastern cities had
refused to pay what they owed the
Western bankers, following in Sc
quence from one city to the other"
The Chronicle says:
"The present money stringency hard
ly affects the State outside San Fran
cisco at all. 1t affects San. Francisco
only as circulation is blocked in East
ern cities and as the money in our
banks is engaged in moving the crops
of the State. Irainloads Of our prod
ucts are leaving the State daily, and
when marketing is over we shall have
money in abundance for all CONNER
cial transactions"
Homer S. King, chairman of thl
clearinghouse, said last night: THE
action of the Governor in declaring a
legal holiday will have a quieting eff
feet. It is not necessary in the cities
but Is needed in the interior to pre-
vent money being withdrawn and
boarded by nervous depositors. The
interior banks, generally speaking
have no clearinghouse. All the
clearinghouse banks in San Francis
DO VIII do business the same as usual
Never before in the history of the
Pacific Coast have the government
depositaries on this coast been bet
ter supplied with coin than are the
sub-treasury and mint in this city al
tho nrasent time " said acting Sub.