| Show EVENTFUL mm WEEK FOR F FINANCIERS Seven Days Ago the Outcome of the Monetary Crisis Was Very Much in Doubt DANGER OVER WEDNESDAY FEW FAILURES AS COMPARED WITH 1893 New Xe York Nov No The most eventful week in lit the financial l history of the present generation came carne to a adose close dose on Saturday with conditions much clearer than a week before but with some Bome clouds still hanging over tho the fi financial financial horizon The Tho previous week had closed with tie announcement that the New Now York bank reserves had lost 20 In cash in spite of deposits by bythe b bythe the government during the week of nearly an equal urn um representing a anet anet net iet loss of The bank state statement statement statement ment of yesterday changed this situa situation situation tion While it shows a nominal de decrease decrease decrease crease in hi required reserves of more than of this de decrease decrease crease creaso crease Is due to the reserve require requirements requirements ments caused by y increase In deposits because of the taking over of ot loans from froni the trust company by the banks Moreover the actual cash loss of f 4 Is due to the system of averaging ing pg g accounts for the entire week in including eludIng several days before the arrival r of the new gold Unless demands from the country are very heavy next week the arrival of additional gold will willmore willmore wIllmore more than offset the loss of cash ca h last week and make a creditable showing for reserve on night Week Began in Gloom The week began on Monday Monda with a feeling of grave doubt as to the fu future future future ture of the two trust companies which had been subjected to severe runs The possibility that they might go down and drag with them such financial structures which still stood erect kept Mr Morgan the trust companies pres presidents presIdents presidents and other financial leaders in almost continuous suspense until last Sunday morning and again on Wednes Wednesday Wednesday Wednesday day until 3 in the morning When it was finally announced early earlyon on Wednesday forenoon by resident King ICing Ing of the Lincoln Trust company acting as chairman of the committee of ot trust company presidents that the management of ot the Trust Company of America and the Lincoln Trust corn com company pany were to receive all the assistance they required in return for depositing dep the majority of their stock in the tITe banks of the committee the situation cleared confidence returned and the stock mar market market market ket advanced generally from two to three points Danger Over Wednesday It was felt that the danger of a gen general general general eral crash In New York was over aver and that the waves of ot the storm would gradually subside The restoration of ot comparative security in New York was obtained only by demands on the mar markets markets of Europe which created a ten tension tenIon tension sion Ion not no before experienced since the Boer lIner war Indeed the Bank of Eng England England England land in order to protect Its gold re raised its discounts on Thurs Thursday Thursday Thursday day to 7 per cent a rate which had not before been beon fixed since 1873 The Bank Banko or o 0 France Franf raised its It rate for discounts to 4 per p r cent the Bank of Belgium to 6 per cent and the Bank of Germany at nt a special meeting called on Friday Used fixed tI ed the unusual rate of 7 per cent It 11 is not surprising that these the preau precautions pre au were wre taken to protect prote t European bank reserves In hi view vie of the fact that nearly in gold hold was engaged by American banking institutions with withIn within in fn less than two weeks The first ar arrival arrival rival rhal of the yellow Jenow metal came carne at the critical moment when the trust com corn company company pany situation was uncertain on Tues Tuesday TuesdaY Tuesday day Then came smaller consignments Wednesday on and on Friday the delivery ery cry of by the Lusitania The demand for tor gold from Europe came at ata ata I Ithe a n favorable time In some respects for forthe forthe the outward movement of American products of which the leading ones are arc cotton and wheat Cotton Movement Congested The cotton movement has been a great deal leal congested by the absence of small bills hUls In the southern banks but everything possible le Is being done by bythe bythe the thc secretary of ot the treasury and New NewYork NewYork NewYork York bankers to aid the southern I bank banks in n meeting the situation The same Is true in regard to the move moye movement ment of grain which has thus tar far been more easily handled at Duluth and other northwest points with the aid of west western western ern era banks than has the cotton move movement movement ment New York bankers are sending for forward forward forward ward to the west and south all an the especially to currency curren y they can spare spar those points Joints wherein the money mone is most needed The premium on currency 3 cent dur during durIng durIng which rose ro as high as per ing the week though ough It closed clod some hat lower has had a curious effect I Continued on Page 2 I EVENTFUL WEEK FOR FINANCIERS FI NANCI ERS Continued from Page 1 upon exchange and the price of United States bonds It has disturbed the cal calculations calculations calculations based upon gold parities of ot exchange and has made it possible to pay a higher price to get gold and to acquire bonds as a basis of circulation than If no such premium prevailed Few Failures Recorded One of ot the features of the situation thus far Is s the small smaIl number of fail fall failures failures ures of at national banks as compared with the record of 1893 At that time national banks suspend suspended ed In Sn the single month of July and additional In June and ana Au August August August gust while nile during the first eight months of 1893 the number of suspensions suspensions sinus of state and private banks was In the present crisis the number of national bank suspensions reported does not exceed a dozen and some o these will ill reopen The week closed with a favorable sit situation situation situation as Indicated by the reports to toR toR toB R B G Dun Co The new week opens with the banking situation In New NewYork NewYork NewYork York cleared up so far as any danger of further failures or suspensions is concerned with the banking reserves comparatively Intact and with more than on oil the ocean to strengthen them during the coming week i |
