New-York tribune., 1907-10-24


the market, in place of the bear which he is
usually. credited with being.
The money situation affecting call loans on
the Stock Exchange was serious and decidedly
unusual. Tt was simply case of no funds 10
be had a. any price as the close OF the days
trading approached Money had been loaning
at average rate OF 20 per cent, with little on
offer even at this high figure.
The Hanover. National City and First National
banks were the heaviest lenders of money on
call yesterday The Hanover acted for poor
OF about ten banks and placed probably 81
100000 20 &J0O0OOO at the ruling rates. The
National City Bank loaned its money III sums
of $4,000 each at q per cent. The First Ma
tional which was a heavy lender on Tuesday
also placed yesterday at the prevailing rates
about much did the Hanover
AS the hour of the closing of the stock market
approached the rate for call loans scared to >"
per cent just before , o'clock the Bank oi
Montreal sent 100000 over TO the board 70 ne
loaned at the best rate obtainable- -NS "'''
SJ. 900 600 was required by the anxious brokers,
there WAS keen competition for this money ana
Il was finally loaned at 12J per cent the Top
rate of the day Even then there were scores 81
brokers who were unable to obtain what theS
needed. and these firms, in the p&rlance OF the
stock market were forced to lay down on The
banks. That is to say. they were obliged to
draw down the balances which they had piedRen
themselves TO keep with their banks. and IN
some cases it is probable that firms had to over
draw their balances, despite the fact that sGci'
procedure is contrary to the laws which gov
en the banks. In other words the brokers' WHO
we're unable to borrow the funds which theF h"u
Ia have were Obliged to throw themselves on the
mercy Of their banks 1t is probable that all
were taken OF. though the banks 90 not
like suln a situation. As one broker put II. the
banks had it in their power to force the brokers
10 go ont of business. but of course such move
would never be contemplated
MIR CORTELYOU IN CONFERENCE.
Secretary CorteIyou went to the sub-Treasury
from the Hotel Manhattan about $50 yesterday
morning and remained there nearly all day.
comforting with the heads of large banking in
stitutions.
There was rumor that several bankers had
requested Secretary Corteyou to ask the execu-
tive officials Of the Stock Exchange to close
dov,, during the present excitement. When
asked about this report the Secretary said;
II have received no such intimation. There
is nothing in the rumor.'
The onl, time in the history Of the Stock EN-
change that il was closed was in the BLACK
Friday, panic A. s Hatch was then president.
crash. and Mr. Hatch. as a board member, was
suspended. whereupou he retired from the pres-
dency Of the exchange The exchange was
closed for ten days, at the end of which time
business was resumed with J. Edward Simmons,
now president OF the Fourth National Bank, as
president
Those who called on Secretary CortelyOu were
a. B. Hepburn. president of the Chase National
Bank; James Speyer George w. Perkins, Of
J. p. Morgan & Co: Levi p. Morton. president
of the Morton Trust Company and Thomas f.
Ryan and Charles H. Allen. vice-presidents or
that institution: Senator John Kean of New Jer-
sey. ce-president Of the ,,anhattan Trust Com
pany; James T. Woodward, president of the
Hanover National Bank; Robert NJ. Galloway
and L. s. Freeman, president of the Mercha nts'
National Bank; Finis f. Marshall president OF
the Phenix National Bank; Frederick r.
Scherck president Of the Liberty National
Bank; Edwin S. Schenck, president Of the Citi-
zens Central National Bank; Samuel Woolver-
ton president Of the Gallatn National Bank;
George NJ. Hard, president Of the Chatham Ma
tiona Bank; Gilbert G. Thorne. vicc-president
Of the National Park Bank; w. F. Havemeyer
president of the National Bank of North Amer
lea, and ]. G. Cannon vice. president Of the
Fourth National Bank
RUN ON DOLLAR SAVINGS BANK.
The proximity Of the Dollar Savings Bank,
at No 2S0S Third avenue. to the Bronx branch
OF the knickerbocker Trust Company it was
sa'd' was responsible for a run the savings
institution yesterday. The depositors were
nearly all small storekeepers and foreigners
President Haffen President of The Bronx, made
a statement that there was enough money ON
hand to meet all demands. The two hundred
ueposltorS drew out about $40 0O0
- r. Northrup, counsel Of the Lincoln Trust
Company. said last night:
Inc Lincoln Trust Company has for sone
'iIHe oeen calling its time loans and lending on
e"ii' II called loans amounting to 81 100000 to-
cay of which S1,600,OO0 was paid On at onca
Payments have been made as fast as demanded.
ana certificates OF deposit covering as far in aG-
vance as March. 1903, have been paid on de-
iIiaho- All certificates OF deposit payable on
i'o'ice nave oeen cashed on demand. the COM
pany waving its right to demand the required
notice
The company is absolutely solvent. and has a
large number Of securities which can be quick
~ converted on the Stock Exchange
Inc company Increased its force in its paying
teHer department, and paid its deposits as rap
idly as possible"
OPINIONS OF BUSINESS MEN
SeNefaI hnancial and business men in this city
spoke encouragingly of the situation yesterday
They declared that the banks as whole were
in sound financial condition, and that if peo-
pie would keep cool the trouble would soon
end
Charles A. Peabody, president of the Mutual
Life Insurance Company, said: There are
various reasons for the present conditions, but
II every man would stop talking about it and
et,s.r
news, the trouble would soon end. 1 cannot tell
n hon he iroYp 20 fttV hut