The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1901-10-16
PANIC NARROWLY AvERTED.

~, vo-r October Io.-Tienry Clews the banker, tells
- h SATURDAY. Evening Post how panic was averted IN wan
steet fter the assassination OF President Mckinley
S the FIRST shock caused by the shooting OF President
,ttI,, had spent itself the community, says MI
~ che next thought the minds of almost all business
wen was the effect the would have on our industrial
situation. So, - Ir;da,,
ee,tember was my to Saratoga and reeeNeu '
go IN Albany Instantly changed my plans and returned
- New York That night there was meeting at tne oe
ptbarr in New York city that full of dramatic IN
forest and that showed how thoroughly the business OF tue
,o,,,trv &c under the control of our big hnancers.
wall street for half day was tremendously agtateu
m n solid was the system behind it that the trouble passed
over with scarcely utter This system IS unique us ike
n not to be found elsewhere in the world AS soon as great
calamity that may affect the business interests Of he com
nupy nanfests itself such the shooting OF President
Mckinley call is issued by the clearing house committee OF
the New York banks for a meeting.
"Scb call went out before o'clock the day Mr. Nc
Knlev was shot and by o'clock that evening there were
rent at the Hotel Buckingham Fifth avenue the pres
dc If all the important banks in the city and also the
heads of many the big private banking houses The call
had been issued by chairman of the clearing house COM
mitee under power vested in him for that purpose
The situation thoroughly discussed and resolution
was adonted under which the banks agreed lend all the
money that might be demanded to exceed the rate OF
per cent The private banking houses agreed to stand unde
the propertes in which they specially interested and
the banks promised support them by furnishing such cash
accommodations they might absolutely need
In addition the clearing house banks resolved to send
loan brokers into the open market offer loans the lowest
current market rate 1t agreed that to meet any emer-
gency that might arise and prevent shortage III cash.
the associated would issue clearing house certificates to
anv amount These certificates would be considered as so
much cash. thereby enormously increasing the volume OF
money at command.
O course for every made good current security was
to be exaced and no would loan than 80 cent
OF the actual market value of the securities The clearing
house certificates issued would be issued the basis
of stock and bond security furnished by the bank making
the application for the certificates
Saturday being halfholday with only two hours trad
ing on exchange and all the loans needed having been
provided for for that day. effort made to
influence the market On Monday, however the banks sent
loan brokers with instructions to offer amount of
money brokerage houses stock securities AT the
all the private banking houses and great capitalists
had special representatives the floor of the stock
change ready up the stocks offered of their special
line at the market rates.
~ P Morgan Co.. the Rockefellers the Vanderbilts and
all the others represented by from half dozen to
brokers' all armed with unlimited buying orders These
tactics kept the market absolutely steady.
wall is being constantly abused and vhed This
exhibition OF what Wall do the
try from disaster ought be object lesson that the
thinking would heed for had the condition been left them
selves unsupported there business working
in America who would not have felt the effect"