Los Angeles herald., 1907-10-23
CRISIS IN
BANK SCARE
is PASSED
COUNTRY AT LARGE HAS NO
CAUSE FOR ALARM
PLENTY OF MONEY, GOOD CROPS
IN THE WEST
Situation In New York Continues
Somewhat Gloomy, but Leaders
of Finance Believe Readjust-
ment ls at Hand
Special to The Herald.

Special to The Herald.
NEW YORK, Oct. 22.-Although the
immediate financial outlook in this city
is considerably clouded, reports from all
over the country indicate that no general
wave Of depression is to be feared. Crops
in the west are large. farmers are pros
porous and their products are being
moved to market rapidly, bringing in re-
turn large sums of money Is
On the Pacific coast there appears to
be no danger of anything resembling a
financial crisis. Banks have plenty of
money and commercial interests report
all is well.
The suspension of the Knickerbocker
Trust company here today following a
run on the institution, decentralization on
the stock market and general expressions
of alarm were the darkest features of the
day in New York. On the brighter side
Is the statement of state and federal
officers that there Is no cause for dis
turbance; that the worst of the trouble
is tover and that there is plenty of money
in sight to meet all requirements.
Credit, the under-the-surface foundation
of all business, trembled for a time today
and before confidence could be restored
New York's second largest financial in
stitution had emptfed its cash vaults un-
der the pressure of the biggest run ex-
perienced here in generation; stock
exchange firm had failed for $6,000,OOO;
Wall streets principal securities had
settled from to points a share; call
money had risen to 70 per cent and local
bankers united to stem the tide of dis
trust had been forced to- appeal to the
secretary of the treasury for relief.
All this was in the face of reassuring
statements by the acting state superin-
tendent of banks that the suspected
bank was solvent; declarations by promi-
nent bankers that there was no true
basis for any alarm, and assurances from
Washington that Secretary Cortelyou
would not hesitate to act promptly in
any situation where legitimate business
was threatened.
CorteIyou Arrives
Now that the first scare is over and the
worst of the future discounted 1t Is be-
iieved that local banking affairs will soon
readjust themselves. Secretary of the
Treasury Cortelyou reached New York
from Washington at $3.50 o'clock. He was
met at Jersey City by Hamilton Fish. as
sistant United States treasurer. and the
two were In earnest conversation during
the ferry trip to New York Upon reach
Eng this city they went a tsonce to the
Hotel Manhattan where several bankers
were later presented to the secretary.
The Knickerbocker Trust company the
STORM center tOudy, pdiu Out CASH " Hc-
positors at the rate of $44, IA a minute for
three hours, and then closed its doors.
The directors had, as they thought, fully
prepared for run. and caused to be
announced that sS,000.000 in cash was oil
hand to meet all eventualties. At $3.50 @.
m. few depositors withdrew their ac-
counts, and an hour later hundreds were
in line to take out their deposits at the
main office at Thirty-fourth street and
Fifth avenue and at the Harlem and
Rronx and downtown branches.
No More Cash
The SS000,000 lasted until $780, when
Vice President j. T. Brown announced
that the bank had no more cash avail
able and payments would be suspended.
Mr.. Brown said the bank would open
tomorrow and payments be resumed at
10:30 The Knickerbocker, 1t was an
nounced, had ample securities to meet al
demands, was perfectly solvent and 1t
was only a question of raising the cash,
when all depositors who wished to with
draw could do so.
]. P. Morgan and his partners were In
conference. at their Wall street offices
until after 6 O'clock. Mr.. Morgan, when
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