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THE FINANCIAL SITUATION. Banks of the Country Issuing Clearing House Certificates for Use in Place of Money Until Situation is Adjusted. The entire country is feeling the effect of the acute financial situation in Wall street which has been eagerly watched for some time by the people of the nation. The extraordinary gambling on the stock exchange caused the suspension of several banks in New York, and for a time it was feared that a great financial crisis might result in grave detriment to the business interests of the country. The effect has been to squeeze out all speculation. and to force stocks, etc. down to their actual value. Prices fell off until investors in Chicago and the large cities have drawn their money from the banking houses to send to New York to purchase the cheap securities, with the result that the money of the country being tied up in New York, they were unable to supply the currency to meet the demands of business. Consequently the banks of the country have been compelled to place themselves upon a certificate checking basis, in which condition they will remain until the situation is adjusted. There is no doubt of the wisdom of this course, in fact it has been compulsory. The action of the banks of Decorah may be cited as the existing condition throughout the state and country. The Winnesheik County State Bank, Citizens Savings Bank and National Bank of Decorah have appointed a Clearing House Committee from their officers, and have each deposited with this committee $50,000 worth of their best securities, making a total of $150,000. Clearing House Certificates amounting to $100,000 in denominations of $10 and $20, have been issued against these securities, each of which is signed by the presidents of the three banks, and these certificates will circulate the same as cash, being accepted as cash by the banks, business men and others. There is not the slightest occasion for alarm. The simple fact is that the banks of Chicago, Cedar Rapids, Des Moines and other cities, who hold deposits from the Decorab banks, are unable to supply the currency to the local banks as is their custom for business from day to day, because they in turn cannot get the currency they need from Chicago and New York. The banks of Decorah, Iowa and the country are in better condition than they have ever been. Crops are plentiful, prices have been unusually high, and a general condition of unequalled prosperity exists, the only difficulty being the fact that the actual money is confined to the New York banks, held there until the situation adjusts itself. State Auditor Carrol issued a letter to the state and savings banks Monday, and in it he says he expects to see a marked improvement in financial conditions by the end of the week. In it he states that ''it is not a question of the solvency or soundness of the banks, but their inability to secure the cash from Chicago or else. where would make it impossible for them to continue their cash payments for any length of time. If need be, the savings banks, upon their savings
