New-York tribune., 1908-01-30

ually reduced until yesterday it was down to
81 100000
The Clearing House announcement that no
further aid would be extended, he said. was the
final obstacle in the banks fight for life that 1t
could not surmount.
Edward r Thomas was formerly vice-presi-
dent of the bank and among the directors were
F. Augustus Henze, Orlando F. Thomas. Ed
ward r. Thomas and Elverton r. Chapman.
Last fall. however the Thomas-Heinze interests
retired from the directorate and the election Of
ex-Controller Grout and his brother to the
board. with numerous other Brooklyn business
men. was thought to have strengthened the
position of the bank greatly.
The president of the third bank which it had
been rumored within the last few days would be
obliged TO go into voluntary liquidation and
which has been unable to retire its Clearing
House loan certificates. said last night:
THE bank cleared within the regular time to-
day, meeting all its outstanding obligations
The bank will open at the usual time to-mor-
morning"
WILL CLARITY SITUATION
An officer in one Of the largest banks in the
city said last night that the downfall of these
banks would go far toward clearing up the
banking situation in New York and placing IT
on a stronger basis than it has occupied
before.
Their overthrow was not unexpected" he
said, "and there was nothing extraordinary in
it. II simply emphasizes the fact that banks
that are not managed along orderly lines must
be eliminated. 1t is well known that certain
officials connected with these institutions have
departed from recognized banking methods, and
that knowledge in the case of the New Am
sterdan has led TO a dropping of deposits from
sc, ,000,O 600 to s2,000,000. This fact in itself
showed that the days Of usefulness of the bank
were ended. With the falling off OF the depos
its has come a consequent difficulty In obtain
ing money to meet the demands made upon the
institution. Efforts to raise this money by call
ing upon other banks have been fruitless. The
fact that the Clearing House Association had
ordered that the members begin TO issue indi-
yfdual statements again after February made
il necessary that the banks in question obtain
the money to take up their Clearing House loan
certificates IL they were not 10 appear in the
statements.
. "Other banks were none too anxious TO come
to the relief of those institutions where affairs
had been improperly conducted. In times or
financial panic bank IS willing TO come to
the aid of another in order to keep up the gem
eral standing but at this time. when affairs are
almost normal. reason why a sup
posedly sound institution should have any par
ticular aid.
The officials of the New Amsterdam were |
making efforts among various banks yesterday |
to get money to tide them over their difficulties
At one time it looked though this money ]
might be obtained. but think that the banks |
where appeals for assistance were made were |
not satisfied with the collateral that the New |
Amsterdam had to offer. This collateral was |
made I'D largely OF small notes and bills receiv- |
able In the case OF the notes of a large cor |
poratfon Il is easy for committee to decide |
what they are worth, but in the case of colat- |
eral such as the New Amsterdam had IL is diff |
cult for any not perfectly familiar with the /
signers of the notes to know what their real |
value is Consequently the bank unable TO |
get the aid that it needed. think its condition |
is not due to any decided that has been |
made on 1t recently, as the debit balance which |
1t had at the Clearing House to-day less |
than 100000.
1.-The liquidation of these banks ought to have /
a wholesome effect upon banking in New York
With the exception of possibly other institu-
ton. every other bank in the city is as sound as
a dollar. They have more money than they |
need. and their condition is constantly improv-
ing With these banks eliminated, the banking
situation never strong it is to-day.
tBy Telegraph o The Tribune
Albany Jan 29.-Clark Williams, State Super