Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-10-25
John D. Rockefeller and J. Pier
pont Morgan Place Vast
Sums at Disposal of InStitu-
tionS in Peril.
MORGAN HAILED AS
SAVIOUR OF SITUATION
Rate on Call Money Quickly
Drops From 100 to 10 Per
Cent: CorteIyou Believes the
Danger Point is Passed.

IBy Morning journal special Leased wIreI
New York, Oct. 24.-As a result of
today's developments in the financial
world there is every indication that the
crisis in the banking and trust COM
pany situation has been safely passed
The Trust company of America all
through the days banking hours paid
out money to depOsitOrs as rapidly as
possible and closed today with an de-
mands having been met. A very
favorable feature of the situation re-
speeting this company was that IL was
able 10 make its payments with very
little assistance and another was that
the company received over its coun-
ters I'm the morning hours IN ordinary
deposits more than $1,000 00O. The
day was marked by these noteworthy
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 City
Savings banks. These banks trans
acted only a neighbOrhood business
and their suspension of payment was
absolutely without significance as
bearing on the general situation.
State Bank Examiner Judson declared
this afternoon that all three were sol
lose nothing
The second episode was q run begun
upon the Lincoln Trust company. At
the close of the day the cOmpanys Of
hcials announced that they We're fully
able to meet all obligations.
BY far the most notable, even dra-
matte, episode of the day was the
emptying of money into the stock eN-
change through a pool headed by J.
p. Morgan and other financiers In or
der to avert ruthless selling out of
stocks held by brokers. which was
threatened because Of their inability
to obtain renewals Of loans on which
these stocks had been carried,
A remarkable condition brought /
about this extreme stringency, Ger
tain large interests of great financial
resources had been charging recently
what was in effect ~ not legally, usur-
ious rates of interest on call loans. I
one institution that had been engaged
in this practice. itself member OF
the clearing house was criticised by
other banks for It's action, on the
ground that this added AN unneces-
sary complication and strain on the
money situation. As result OF the
this institution withdrew its
support and declined to oter money
on call on the stock exchange Ihe
effect Of all this was TO run money Tor
today up to 100 per cent and when that
figure was quoted an extremely sharp
decline resulted in the stock market.
Union Pacific. a 10 per cent stock,
sold down to par.
At the time that excitement was AT
its height the announcement was
made that pool had been formed
with j. =. Morgan at its head, 90
come TO the rescue Of the brokers TOT
Il was necessary 90 provide FUNDS an
once I'm order that they might carry
stocks they were holding for their
customers.
The effect OF the relief measure was
and the rate of call I
money dropped from 100 per cent I" |
10 per cent When the stock eN-
change closed everyone was getting all I
the money he wanted. The close was
marked by memorable scene in 1
which the brokers gathered around I
the principal trading posts and gave Z
three cheers for j. Pierpont Morgan. !
and the member ot the pool, which 1
had saved the day
The aggregate amount Of money 4
which had been contributed % Z
weather the storm and restore conf
denee assumed truly colossal proper
lions Roughly estimated IL includes
s25. 600. 900 which Secretary Cortelyou /
deposited IN the New York banks
i25. 600. 600 which the Morgan pool
nTouEnl 10 the ubhIs eiNsNNNsVNN 4
which John D. Rockefeller deposited Z
with the Union Trust company. and
finally another S50.000.00O. which it Is
Mr. Rockefeller stood
ready to advance TO meet any further
stress Of conditions in an considerably
In excess Of 8lOO.00O.0OO.
At ] O'Clock this morning Charles
Williams. tho newly appointed state
super intendent of banks. made public
the following statement;
so far az I have been able to learn
during the short time which ! have
had 10 examine into the situation. Z
ind an the banks under my supervi-
sion IN this city 90 be solvent, and u
wiz only be rash and uureason-
able demands on the part of the de-
positors that will cndange rthe sit
nation"
The development OF the evening
Included the Issuance by State Comp
.rolier Martin u. Glvnn ~ a state
mont on the local financial situation,
and the announcement Of plans FOR the
OF the suspended
Trust company. The