Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1907-10-31

There Is Every Indication That
Crisis in the Banking Stu
alton Has Passed.
MORGAN POOL SAvEDTHEDAY
The United states Treasury, Rookie
Teller and Morgan Furnished
S60,00o,o00 to Check the Down
ward Stock Market

4 .----- Stas- Fl III
New York, Oct. 25.--As q result o.
Thursdays developments in the finan
cial world there is every. indication
that the crisis in the banking and
trust company situation has been safe
ly passed. The Trust Company Of
America all through the days banking
hours paid out money to depositors as
rapidly as possible and closed Thurs
day with all demands having been
met.
A very favorable feature Of the stu
alton respecting this company was
that 1t was able to make its payments
with very little assistance and another
was that the company received over
its counters in the morning hours in
ordinary deposits more than $1,000. 900.
The day was marked by these note
worthy episodes. First and earliest
In the day came the announcement of
trouble In three minor state banks in
Harlem-the Hamilton bank, the
Twelfth Ward bank and the Empire
bank. These banks transacted only
q neighborhood business and their
suspension of payment was absolutely
without significance as bearing on the
general situation. State Bank Exam
finer Judson declared Thursday after
noon that all three were solvent and
that their depositors would lose moth.
Ing.
The second episode was run
Inaugurated against the Lincoln Trust
At the close Of the day the com.
pany's officials announced that they
we're fully able to meet all obligations
BY far the most noticeable, even dra.
matte episode Of the day was the
Of money into the stock ex-
,hange through a pool headed by ]. P.
Morgan and other financiers, in order
% avert a ruthless selling out of
stocks held by brokers which was
threatened because Of their inability
o obtain renewals Of loans on which
.hese stocks had been carried.
A remarkable condition brought |
bout this extreme stringency. Ger
ain large interests of great financial
esources had been charging recently
What was in effect If not legally,
SPURIOUS rates Of interest on call
oans. One Institution that had been
in this practice was itself
member of the clearing house and was
everely criticized by other bankers
or its action on the ground that this
dded an unnecessary complication
nd strain ON the money situation.
IS a result Of the criticism this insti-
ntion withdrew its support and de-
lined to offer money on call on the
took exchange. The effect of this
vas to run the rate for money up to
90 per cent and when that figure
as quoted an extremely sharp de-
line resulted in the stock market.
'nion Pacific, ten per cent stock,
Did down to par.
At the time that excitement was at
s height the announcement was
lade that pool had been formed
it'll J. P. Morgan at its head to come '
, the rescue of the brokers for It I
as necessary to provide funds at
ice in order that they might carry !
ocks they were holding for their !
lstomers.
The effect of the relief measure was '
staneous and the rate Of cali money t
'opped from 100 per cent to 10 per 8
mt. When the stock exchange c
osed every one was getting all the
oney he wanted. The close was (
arked by a memorable scene In r
hich the brokers gathered around a
g principal trading posts and gave b
rec cheers for ]. Pierpont Morgan q
d the members OF the pool which 1
ID saved the day. p
The aggregate amount Of money
itch had been contributed to wealth b
the storm and restore confidence d
sumes truly colossal proportions. r.
,ughly estimated II includes S26,. n
5000 which Secretary Cortelyou de- :
sited in the New York banks; e25,-
1000 which the Morgan pool o
ought to the floor; $4,000. 900; which n
In D. Rockefeller deposited with the 81
lion Trust company, and finally an q
her s50.000.o0o which, 1t Is under.
,od Mr.. Rockefeller stood ready to b
vance to meet any further stress Ia
eonditiens--in all considerably in Il
cess Of 500. 100000. b
West Is Independent. Ri
Oct 25.-President b,
'osevelt was Thursday thoroughly
lormed regarding the financial