Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1907-10-25
MORGAN AND FRIENDS TO
RELIEF OF wall STREET,
They Throw In $25,o00,000 Cash and Force Call
Money Rate From 100 to 10Per Cent-..Severa|
More Failures But Situation Is Easier.

New York, Oct. 24.-As q result of to-
days developments in the financial
world there is every indication tonight
that the crisis in the banking and trust
company situation has been safely
passed. The Trust Co. of America all
through the days banking hours paid
out money to depositors as rapidly as
possible and closed the day with all de-
mands having heen met. A very favor
able fea ture of the situation respecting
this company was that it was able to
make its payments with very little as
sistance, and another was that the
company received over it's counters in
the morning hours in ordinary deposits
more than IL 100000.
The crowd assembled at the COM
pany's banking office throughout the
day was smaller than it was yester-
day and the sums withdrawn were not
50 large as those taken out Wednesday.
At the close Of the days business, Oak
leigh Thorn. president OF the company,
said that there was abundant cash in
the comDInyS vaults to meet the sit
uation ana that he had no apprehension
whatever regarding the institutions flu
turC.
1T was tho general impression in fl
narcial circles that this company hav-
ing withstood q lWo-days' run With SO
little trouble was undoubtedly in good
condition to continue its business and
in fact that the company and its af-
fairs were not considered as a factor
any longer in the general situation. AS
the TrIst Co. Oc America had been the
# fi-1DVTicl IL
awHs acccpted that the ability it had
thus shown 10 weather the storm was
q clear Indication that the financial sky
had cleared ana 4 spell Of fair weather
VS. BOW wei in sight.
The day was marked By three note
worthy episodes: First and earliest in
the day came the announcement of
trouble in three minor state banks in
the outlying districts Of Harlem the
Hamilton Pank. the Twelfth Ward
Bank ard the Empire City Savings
Flank. Th0Sc banks transacted only 4
Eeighrnrhnod business and their sus-
per SIGN Of Iivmcnt WAS absolutely
without significance rs bearing on the
general situation. Although these banks
were obliged to close because of lack
of ready cash. State Bank Examiner
Judson declared this afternoon that all
three We're solvent and that their de-
rositors would lose nothing.
The second episode was Il rather moro
serious run inGugurated against tho
Lincoln Trust co. 1t is an uptown in
stitUtian with a great many women de
pOsitUrs and it carried mainly person
al household accounts. The run against
it was without Importance to the city's
banking interests as a whole. At the
close Of the day the companys officials
announced that they were fully able to
meet all obligations.
BY far the most notable. even dram
attic episode of the day. was the empty
ing of millions Of money into the Stock
Exchange through Il nool healed by j.
=. Morgan and other financiers in or,icr
to avert q ruthless selling ont oc stocks
held by brokers which We're threatened
because of their inability to obtain re-
newals of loans on which the stocks
had been carried. 4 remarkable con-
dition brought about this extreme
stringrrcy in money, which hal gradu-
ally forced the rate Of interest up to an
almost unprecedented figure Certain
large interests ol great financial re
sources had been CHARGING recently
what was in effect. if not legally. usur-
Gus rates Of interest on call loans.
Ore institution tint had been engaged
in this practice was Itself q member
of the Clearing House and was severe
" criticized by other bankers for it's
act ion on the ground that this added
unnecessary complication and strain 10
the money situation. As Il result Of
the criticism this institution withdrew
its support and declined to offer money
OF call on the Stock Exchange. The
effect of this was to run the rate for
money today up to 100 per cont. and
when tlIat figure was quoted an ex-
trcmcly sharp decline resulted in the
stock market. Union Pacific. 10 per
cent. stock selling down to par.
Notwithstanding the high rate for call
money that might have been obtained
the National city Bank, John d. Rock
efeller personally. and other prominent
Inoneved interests sent funds To Stock
EXCHANGE to he lent at the normal
rates of per cent. These sums. how
ever. we're not sufficient to meet the de-
nand and for time there was great
confusion and hurried selling Of stocks
on the Exchange. At the time when
the excitement was at its height the
announcement was made that a pool
had been formed with ]. ?. Morgan at
its head to come TO the rescue Of the
brokers for whom it was necessary -
provide funds at once IN order that they
might carry the stocks they We're hold
ing for their customers. The Morgan
pool brought sum of money amounting
to about so5, 100000 into the loan corner
o. The Exchange, where it waa quickly .