Rensselaer Semi-Weekly Republican, Volume 40, Number 15, Rensselaer, Jasper County, 29 October 1907 — NO OCCASION FOR ALARM! [ARTICLE]

NO OCCASION FOR ALARM!

Bankers Unite to Protect Home Interests. i " Local Institutions Strong Big City Banks Refuse to'Exchange Currency, Making itNecessary For Local Depositories to Retain Cash on Hand.

The decision of the local banks to take steps to forestall the demand of the large city banks for currency, was arrived at by the bankers of

Rensselaer, Wheatfieldand MJL Ayr, at a meeting early this Monday morning and the following statemen t of the cause and its efleefc is very plain:

A STATEMENT By the Associated Banks of Renslaer, Wheatfield and Mt. Ayr. WHEREAS The Associated Banks of Chicago, St. Louis, Indianapolis, LaFayette, Logansport and other cities have followed the example of New York to issue, through the Clearing Houses, certificates for the payment of balances, thereby suspending the shipments of currency and locking up the balances of depositing banks, and WHEREAS: The banks of Rensselaer, Wheatfield and Mt. Ayr, Indiana, of necessity, in the daily transaction of their business have on deposit in these cities large sums which are now made unavailable as far as currency is concerned; and WHEREAS: In such a condition, the funds in our vaults, though fully adequate to provide for even more than ordinary calls, will be subject to such enlarged demands as to make their exhaustion certain unless similar restrictive are adopted by the Associated Banks of Rensselaer, Wheatfield and Mt. Ayr„ Indiana; THEREFORE BE IT RESOLVED: 1. That the Associated Banks herein named appoint a Loan Committee of five to whom any bank herein named may submit securities against which the committee, after its approval of such securities, shall issue certificates which shall be accepted as a medium of exchange, said committee having authority to arrange all details incidental to the issue, use and redemption of such certificates. 2. That until further action by the Associated Banks herein named not more than five per cent of any account will ’ be paid in currency to any depositor. The business between the banks and their patrons can proceed in the ordinary way except so far as it concerns the withdrawal of actual currency, the banks being prepared to issue drafts which will be accepted in other cities in payment of all obliga tions. s THE FIRST NATIONAL BANK OF RENSSELAER, Rensselaer, Indiana THE STATE BANK OF RENSSELAER, Rensselaer, Indiana THE JASPER SAVINGS & TRUST COMPANY, Rensselaer, Indiana THE BANK OF WHEATFIELD, Wheatfield, Indiana THE BANK OF MT. AYR, Mt. Ayr, Indiana.

The situation is produced thruout the central west and probably the entire country by the depression of certain stocks and the corresponding failures of some banking concerns directly affected by Wall street operations. New York banks have then issued certificates to the creditor banks of the west in lieu of currency and the banks ot thp west have adopted the retalitory rneas ure of refusing to send rency to the east, aud adopted the plan of issuing certificates to the the smaller banks when they as;ed for currency, and they have decided to safeguard the people by retaining currency at home, where sufficient only is aimed to be retained to conduct the ordinary run of business. The local bankers ao"*s,"— T~, *’

cordingly determined on the above plan. The money in the reserve banks is doubtless perfectly safe aud the condition is not apt to continue long. The local, banks are all in fine condition and depositors and business people should proceed as tho nothing at all had happened. The local banks are issuing certificates to be circulated as money locally that are guaranteed by the banks in the association and are also guaranteed by the deposit of good collateral in an amount at least 10 per cent in exbees of the amount of certificates issued and in addition are safeguarded by the personal endorsement pledging all the property of all the directors of nid banks.