The semi-weekly messenger., 1907-10-29


i've DAYS Run With Flying Col.
s-Hhen Stock Exchange Closed
everyone Was Getting All the
money They Needed-Three Small
Danks Suspend Payment-Brokers
Cheer j. PierpOnt Morgan and
Members OF the Pool Which Saved
the Day.
New York: October 24-As a result
OF today's developments i'm the fnan-
eial world there is every indication
that the crisis in the banking and
trust company situation has been
safely passed. The Trust Company of
America all through the days bank
ing hours paid out money to denosi-
tors as rapidly as possible and closed
the day with all demands having been
met. very favorable feature of the
situation respecting this company was
that it was able to make its Dayments
with very little assistance and another
was the company received over its
counter IN the morning hours in Crdi-
nary deposits more than $1,000 600 II
was the general impression in finan-
clal circles that this company having
WlthStO0d two days run with so lit
tie trouble was undoubtedly in good
condition to continue it's business
b and in fact that company and it's
affairs were not considered as a fac
ton. AS the Trust Company of Amer
iCa had been the centre Of the recent
financial storm it was accepted that
the ability it had thus shown 10
weather the storm was a clear indf-
cation that the financial sky had
cleared and that a period of fair
weather was now we'll in sight.
This day was marked by three note
worthy episodes. First and earliest in
ia 1n CP
trouble in three minor state banks in
Harlen-the Hamilton Bank the
125th ward bank and the Empire City
Savings Bank These banks transact
ed only n neighborhoOd business and
their suspension Of payment was alb
solutcly without significance as bear
ing on the general situation. State
Bank Examiner Judson, however, de-
clared this afternoon that all three
were solvent and that their deposi-
tors would lose nothing. The second
episode was run inaugurated against
the Lincoln Trust Company. The
rAA against this company was Steady
throughout the day. but the sums
withdrawn were not large.
At the close of the day the COM
pany's officials announced that they
were fully able to meet all obliga-
tiOns.
BY far the most notable, even dram
attic episode Of the day was the empty
ing of millions of money into the
stock exchange through pool headed
by j. =. Morgan and other financiers
in order to avert a ruthless selling out
Of stocks held by brokers which
was threatened because of their ina
bility to obtain renewals Of loans on
which these stocks had been carried.
\ remarkable condition brought about
this extreme stringoncy In money
1T
est rate up to an almost unprecedcnt-
ed figure. Certain large interests Of
great financial resources had been
charging reccntly what was, in effect
il not legitimate, USuriOuS rates OF in
terest on all call loans, One insttu-
tiOr that had been engaged In this
practice was itself q meIaber of the
clearing IOuSe and was severely cr1tl-
Cised by other bankers for it's action
on the ground that this added an un-
necessary complication and strain to
the money situation. AS q result OF
the criticism this institution withdrew
its support and declineG to offer
money on call on the stock exchange
The effect Of this was to run the
rate Of money today up to 100 per
cent. and when that figure was quoted
an extremely sharp decline resulted
in the stock mark ct. Union Pacific,
ten per cent stock, selling down to
par. Notwithstanding the high rate
for call money that might have been
obtained, the National City Bank,
H0hn D. Rockefeller, personally, and
Other prominent mOnied interests sent
funds to the stock exchange to be
lent at the normal rates OF per cent.
These sums, however, We're not suttl-
cient to meet the demand and FOR
time there was a great confusion ana
hurrie! selling Of stocks on the ex-
In
was at its height. the announcement
was made that a pool Bad been FORM
ed with r. T.. Morgan at its heau 10
come to the rescue OF the brokers' lof
whom it was necessary TO pfoElue
funds at once in order that they nlght
carry the stocks they were holdln9 loL
their customers. The Morgan pool
brought a sum Of money amounting
TO about $25 100000 to the loan cor
nar of the exchange where it was
quickly distributed in such lots as
would be most effective In renewing
support The effect of this rel!el
measure was instantaneous ana tne
rate on call money dropped from luz
Der cent to 10 per cent. Stocks al
Vanced more rapidly than they nad
declined and It was only few n1ln-
ntes until Union Pacific. the market
leader was selling at los. Otner
stocks were similarly affected ana the
rally was complete. Seldom, II ever
had the veterans of finance seen
great situation saved so Greatiy anu
so effectively by such Napoleonlc
c+roI-e When the stock exchange
closed every one was getting all the
money they wanted. The close was
marked by a memorable scene IN
which the brokers gathered around
the PRINCIPAL trading posts ana cave
fhrae cheers for !. Pierpont MoIsan
and the members of the Pool "hicH
m ad saved the day.
rTl,a aggregate amount of money
which Fad been contributed IN order
10 weather the storm and restore CON
Gdance assumes truly colossal proper
mffJAro-v cmfwyp hrdlu mfWyphrdl
Roughly estimated II lr"rtITS r"rt'Ivon 1T de-
n0sited in the New York banks, so
90 90 ---z-1.icI, the M0rgan Zoo!