The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1907-10-25
ALL WORK TOCE Their
Great Generals Of Finance Try.
ing to Restore Confidence.
MONEY IN URGENT DEMAND
Scarcity Of Funds to Carry Marelned
Stocks Results In Heavy Selling and
Preclpitate Declines In the Price Of

SS~'S'T " TonoS " NdTTy "dT9IneO
Stocks Results In Heavy Selling and
Preclpitate Declines in the Price Of
Securities.
New York, Oct. 25.-With all the
great generals Of finance and the Sec
rotary Of the United States treasury
acting In accord to restore public con-
fldence In the banking and trust COM
pany situation in this city sentiment
took on a much more cheerful tone in
Wall street and distinct Improvement
was visible in all quarters Of the finan-
cial district. The day opened with
optimistic statements from officials of
the Trust Company Of America and
up to 2 o'clock in the afternoon that
institution was paying all checks pre-
sented as rapidly as possible. A well
come feature of the company's affairs
was that large deposits amounting to
considerably more than 100000
were made during the morning hours.
John D. Rockefeller deposited $1O,-
100000 with one of the city's oldest
trust companies to be used in extend
Ing aid to such trust companies as
might require it.
The failure of three small up town
banks had some Ill effect on the gen.
eral situation.
Albert G. Judson, a state bank ex-
aminer, announced that the Hamilton
bank, the Twelfth Ward bank and the
Empire City Savings bank, all of
which suspended payment, had been
found to be entirely solvent. Mr.. Jud-
son said:
"All three institutions are perfectly
solvent. The Hamilton and the
Twelfth Ward banks suspended for
lack Of ready cash. The Empire City
Savings bank took advantage of the
thirty-day clause allowed to savings
banks"
The stock market opened buoyant
under the improved tone. In the later
dealings weakness developed, due to
the fact that brokerage houses were
reducing their lines of stock carried
on margins on account of the tight
ness in the money market Call money
was still in urgent demand. It opened
at SO per cent and advanced to 100
per cent.
Union Pacific Sells at Par.
The stock market turned very weak
shortly after 2 O'Clock, Union Pacific
selling down to par, a decline of S1a.
Reading sold down points, Northern
Pacific declined 9, St. Paul and
Southern Pacific 4B. There was no
news to account for the decline except
the scarcity Of money supplies and
the advance in the money rate to 100
per cent.
It was announced on the stock ex.
change that pool had been formed
which would supply the brokers with
all the money required to close their
operations.
There were violent, feverish rallies
in the stock market following the de-
cline, Union Pacific rising in a few
minutes to 105 and Reading to rs.
Prices jumped a full point in some
cases between sales. Northern Pa
cific rallied AZ and Amalgamated
Copper also rose 81 from the lowest.
At 2:25, following the announce
ment Of a pool organized to satisfy
money requirements on the stock ex-
change, call money was lending at 10
per cent. The amount of the pool
loans made in the stock exchange was
about 100000.
There was an unusual scene at the
stock exchange at the closing hour.
When the brokers realized that it was
o'clock and that the trying day had
been passed without serious difficulty
they gathered in the center of the big
exchange and gave three cheers for
J. P. Morgan, whose action in form,
Ing the money pool that came to the
relief of the market at 2:15 had
turned the tide at the moment when
prices were ebbing away with alarm
ing rapidity.