| Show EVENTFUL WEEK FOR 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 ew York Nov No The most eventful week in the financial l history of ot the present generation came to a ft close on Saturday with conditions much clearer dearer than a week before but with some clouds still hanging over tho fi financial 1 horizon Tho previous week had closed with tie the announcement that the New Nev York bank reserves had lost 20 in cash in spite of ot deposits by bythe bythe bythe the government during the week of nearly an equal sum ium um representing a anet anet anet net loss Joss of or The bank state statement statement ment of yesterday changed this situa situation situation tion While it shows a 3 nominal de decrease decrease decrease crease in required reserves of more than of this de decrease decrease decrease crease is h due to the reserve require requirements requirements requirements ments caused cau d toy by y increase in deposits because be of ot the taking over of ot loans Joans from froni the trust company by the banks Moreover the actual cash loss of ot f 4 is due to the system of ot averaging ing accounts for the entire week In Including several days before the arrival of the new gold Unless demands from the country are very heavy next week tho the arrival of additional gold gol will willmore willmore more than offset the loss Joss of cash last Jast week and make a creditable showing for lor reserve on night Week Began in Gloom The week began on Monday with a feeling of ot grave grae doubt as to the fu tu future future ture of ot 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 pre presidents presIdents and other financial leaders In almost continuous suspense until last Sunday morning and again on Wednesday Wednesday Wednes Wednesday day until 3 in the morning When it was wag finally announced early earlyon on Wednesday day forenoon by b resident King ICing of the Lincoln Trust company acting a as chairman of the committee of trust company compan presidents that the management of the Trust Company of ot America and the Lincoln Trust com company company pany rally were to receive all the assistance they required in return for depositing the majority of ot their stock in the banks of ot 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 tho danger of ot a gen general general general eral crash In New York was over and that the waves of ot the storm would gradually subside The restoration of ot comparative security in New York was waso obtained o only by b demands on the mar markets keth of Europe which created a ten tension sion flon not flo before experienced since the Boer war Indeed the th Bank of Eng England England England land in order to protect Its gold god re resources sources our es raised its discounts on Thurs Thursday Thursday Thursday day to 7 per cent a rate which had not before been fixed since 1873 The Bank of France raised its Ith rate for discounts it tJ t 4 per cent the Bank of Belgium to 6 per pr cent and the Bank of Germany at a special meeting called on Friday fixed the unusual rate of 7 per cent It Is not surprising that these there precautions precautions precautions were taken to protect prote t European bank reserves In view of the fact that nearly n arly in gold was engaged V by American banking institutions with within in less than two weeks The first ar arrival arrival rival of the yellow metal came at the critical moment when the trust com corn company company pany situation was uncertain on Tues Tuesday Tuesday day da Then came smaller consignments on Wednesday and on Friday the delivery delivery ery cry of ot by the Lusitania The demand for tor gold from Europe came at ata a n favorable time in some respects for forthe forthe forthe the outward movement of ot American products of ot which the leading ones are cotton and wheat I Cotton Movement Congested The cotton movement has as been a great deal congested by the absence of ot small email bills In the southern banks but everything possible le Is being done by bythe bythe byth the th secretary of the treasury and New NewYork NewYork NewYork York bankers to aid the southern banks bank In meeting the situation The same is true in regard to the move movement movement ment of ot grain rain which has thus far been more easily handled at Duluth and other northwest points with the aid of west western western ern em banks than has the cotton move movement t ment New York bankers are sending g for forward forward forward ward to the west and south all the especially to can spare spar currency Y they those points wherein the money Is most I needed The premium on currency 3 cent dur during which rose ro as high as per ing the week though it closed some somewhat somewhat somewhat effect what lower has had a curious Continued on n Page 2 |
