Evening journal., 1907-10-24
MORGAN AVERTS
MONEY PANIC
Believed That the Financiers
Have Restored Confidence
in New York
TWO BANKS CLOSE
AND STOCKS TUMBLE
BY THE JOURNALS spec-al wlre.

BY THE JOURNALS SPECIAL Wire.
NEW YORK, oct ei-Two state banks
ia possession OF the State Eanking Ex-
amsner a sweeping run cont na.ng on
the Trust Company Of Ame lea and miner
runs on other trust companies and sav-
inss banks. one OF which was compelled
10 insist on thirty to sixty day tolics be.
tore Withdrawals can be made the stock
market feVerish but manirost.y aonger.
and the money market 81 n under pres
sure summarizes to-days s.tustion in I e
local financial world
j. T. Morgan hls sprobably won the m5st
important battle Of his financial career.
Assisted by John d. Rcckefel err ard lie
standard OH millions, by Secie any of
the Treasury Corteyoh and the icsout-
ces of federal government, he succ. edoI
ih restoring confidence TO such aa extent
That unlees some Unforeseen compicat.cn
results the stock exchange and banking
firms VIII be back 20 a normal state by
tho end Of the week The ioan!ng section
Of she stock exchange was to-day the
storm centre. There was an urgent dc.
mand for money and the rate for call
funds ranged from hfty to one hundred
per cent The National copper bank iolnsd
ssuo.ooo az hfly per cent the FIRST Ma
uonal S2000,00O at similar figure. and A
syndicate OF local bankers paid out three
millions at figures which covered the en-
tire range of fluctuations.
Whilo this was going on john y. Rookie
felers personal agents We're loanlng al
per cent, as was all Of the Standard
on banks
The National City loaned si5O0OoO at
THIS rate. Scarcity OF money. however.
compelled many TO sacrifice stock ho.d-
ings With the result that prices covered
a wide range and nuctua,ed from high to
low alternately.
The new State superintendent Of
banks took charge to-day and all state
banks arc TO be thoroughly examined
and compelled to adopt more oonser-
valve methods. The Knlcxerbocker
matter Is stlll unchanged
Huge Sums withdrawn
The directors met to-day and II was
announced that they were trying To ar
range for loans IN the West which
would enable them to resume soon
The officials OF the Hamilton and
Twelfth Ward Banks. which closed to-
day also insist they will resume next
week, when the excitement has quieted
down. Both are said 10 be absolutely
solvent
Deputy superintendent OF Banks
skinner estimates there have beeh
withdrawn from the local banks dur
Ing the past week or two more than
S2oO'O00,000. Most Of this Is now in
safe deposit vaults.
While the Trust Company OF Ameriea
WIN have paid out exceeding ave mill
Hons before It closes for the day at
O'Clock, II has also taken IN In deposits
much more than one million dollars.
The ofiicials declare the backbone OF
the run has been broken and another
da ywill see lts end
Two Banks Suspended
The Twelfth Ward Bank and tho
Hamilton Bank. both small institu-
lions suspended this morning
The State Banking Department took
charge OF both banks. The Hamilton
Bank has It's main office at 2i5 West
i25th street. with many branches.
The Twelfth Ward Bank has a paid
up capital OF 100000
The Hamilton Bank has paid up
capital OF 100000: surplus ana profits
of S2S2,270; individual deposits OF ST.
900. 900.
This notice has been posted on tho
doors OF the Hamilton Banki
"Thls bank IL absolutely solvent In
Justice to all ieposltors il has sus-
pended payments until public CONT
dence has been restored"
Timid Depositors Alarmed.
Harlem ana the Bronx Ia IN an up-
roar Timld depositors are docking TO
the various banks thore with pass
books in their hands and drawing out
their funds, The closing OF The Hamil-
ton and Twelfth Ward Banks is al
severe blow 20 the business men, who
have running accounts in the insti-
tutiOns
The run on the Trust comapny Of
America continues unchecked and the
line Of waiting depositors extends for
blocks. They are being paid OF at the
rate OF one minute and Treasurer
Fonda says he has plenty Of money
on hand.
The clearing house committee Is In
eN1nlNh NitNbitA W 'hHoiuti hlffiNa-
tlons for aid President James still
man, OF the National city Bank, is
present
Must Give Notice
The Empire city Savings Bank al
2st West 125th street. is the first TO
take advantage Of the state law COM
pelling depositors TO give sixty days
notice before their accounts can b'
withdrawn.
This is done because Of the excite
ment IN Harlem and the Bronx fol-
lowing the close OF the Twelfth Ward
and Hamilton banks. other savings
banks are expected to take similar ac-
ton at once.
Decline in Stocks
All interest IN the stock exchange is'
ccntered In tho loan crowd. The First
National Bank loaned se,eo0.o00 at 50
er cent. but there has been no other
suly Many loans have been called in
an over the street aud the collateral
sold because OF inability of borrowers
10 resoud 10 these calls a large
part Of tho selling was this liquidation
81 loans. but there was also renewed
attacks by bear operaors that helped
forcc prices down 10 the lowest level
reached so FAR to-day The prices Of
many stocks In the late forenoon reach
cd the lowest point touched In years
The declines were disastrous because
they continued the downward move
ment already so long In progress. The
market had opened strong