Ladysmith news-budget. [volume] (Ladysmith, Rusk County, Wis.) 1907-1927, 1907-10-24

ASK CORTaYOU FOR HELP
NEW YORK BANKERS UNABLE
TO STEM THE RISING TIDE
OF plSTRUST.

New York, Oct. 23.-Credit, the un-
er-the-surface foundation of all bust
ness, trembled for a time yesterday,
and before confidence could be re-
stored New York's second largest
| financial institution had emptied it's
| cash vaults under pressure of the big
gest run experienced here in a gen.
| GRAFTON, a stock exchange firm had
failed for $6,000,000, Wall streets
principal securities had settled from
$25 to So a share, call money had
risen to 20 per cent, and local bank
ers, unable to stem the tide of distrust,
had been forced to appeal for relief to
the secretary of the treasury at Wash
ington.
Assurances Ignored.
All this was in the face of reassur-
ing statements by the acting state SUI
perintendent of banks that the sus-
pected bank was solvent; declarations
by prominent bankers that there was
no true basis for alarm, and assur-
ances from Washington that Secre-
tary Cortelyou would not hesitate to
act promptly in any situation where
legitimate business was threatened
Now that the first scare is over and
the worst of the future discounted it
is believed the local banking firms
will soon readjust themselves.
Secretary of the Treasury George B.
COrtelyou reached New York from
Washington at $50 o'clock last night
He woo mot ot Torcov Ci+v bxy IIop7il
ton Fish, assistant United States
treasurer, and the two were in earnest
conversation during the ferry trip to
New York Upon reaching this city
they went at once to the Hotel Man.
haitian, where several bankers later
presented to the secretary the various
phases of the local financial condi-
lions.
Before leaving Washington late yes
terday Mr.. Cortelyou directed that &c.
100000 be deposited with New York
banks as soon as the necessary col
lateral had been furnished.
Secretary Will Act.
The secretary issued this state
ment
"The secretary of the treasury is
keeping in touch with the business
conditions throughout the country. In
the matter of public deposits he will
at all times consult the needs of Iegiti-
mate business interests and will not
hesitate to deal promptly and ade-
quately with any situation that may
arise"
Mr.. Cortelyou's statement when re-
ceived here did much to put better
face on things, and it was predicted
that the secretary's visit would result
in further deposits of $15,000,OOO.
Pays $44 444 a Minute.
The Knickerbocker Trust company,
the storm center yesterday, paid out
cash to depositors at the rate of $44,-
444 minute for three hours Yesterday
and then closed it's doors. The direct |
ors had, as they thought, fully pre-
pared for a run, and caused to be an
nOunced in yesterdays papers that |
$8,000,000 in cash was on hand to meet I
all eventualities. The $8,000,000 lasted !
until 1870, when Vice President
Brown announced that the bank had |
no more cash available, and payments !
were suspended. Mr.. Brown said that |
the bank would open to-day and pay
ments be resumed at 1920 o'clock. /
The Knickerbocker, it was announced, !.
had ample securities to meet all de- |
mands, was perfectly solvent, and it
was only a question of raising the
cash, when all depositors who wished |
to withdraw could do so.
HopeIessly Insolvent
Subsequently it was learned that
the position of the Knickerbocker
Trust company was regarded by those /
at the conference as hopelessly insol- |
vent, and that no aid was to be ex-
tended to that institution.
Statement by Cortelyou.
Secretary Cortelyou made the fol-
lowing statement shortly before 1 /
o'clock this morning:
81 repeat what stated before Ieav- |
ing Washington this afternoon, if for |
no other reason than to emphasize the |
attitude of the treasury department. |
It will use its facilities to assist in
every proper way legitimate business ,
interests and it's actions will be /
prompt and thorough.
THE national banks of New York
city are in an exceptionally strong
condition. The general situation here
seems to be well in hand and is being
looked after by many strong and in
fiuential men"