The Montgomery advertiser., 1907-10-25

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 New York. Oct, 24.--As result of the days developments in the nnan- cial world there is every indication that the crisis in the banking and trust company situation, has been safely passed. The Trust Company Of Amer jca, all through the days banking hours, paid out money to depositors as rapidly as possible and closed today with all the demands having been made. A very favorable feature of tha situation respecting this company was that 1t was able to make its payments with very little assistance, and another was that the company received over. its counters in the morning hours In ordinary deposits more than si,0o0,000.
 The crowd assembled at the com- pany's banking office throughout the. day was smaller than it was yesterday and the sums withdrawn were not so large as those taken out on Wednes- day. At the close of the days busi- ness, Mir. Oakleigh Thorne, president of the company, said that there was abundant cash in the vaults to meet the situation and that he had no ap- prehensions whatever regarding the Institution for the future. ..'s v
 It was the general impression in financial circles that this company hay ing withstood two days run with so P little IrOuDle, was unQOuDteOly Tn BOOu condition to continue it's business and that the company and it's affairs were not considered as a factor any longer ln the general situation. As the Trust Company of America had been the cen- ter of interest in the financial storm. 1t was accepted that the ability 1t had ihus shown to weather the storm waa clear indication that the financial sky had cleared and that period of fair weather was now well in sight.
 Three Episodes.
 The day was marked by three note worthy episodes, first, and earliest in the day. came the announcement of trouble fin three minor State banks in Harlem-the Hamilton Bank, the Twelfth Ward Bank and the Empire City Savings Bank. Those banks transacted only neighborhood busi- ness and their suspension of payment wSs absolutely without significance as bearing on the general situation. The Empire Savings was controlled by Tammany Hall politician and it's busi- ness operations were confined to a small area. Although these banks were obliged to close because of lack of ready cash State Bank Examiner Judson this afternoon stated that all three were solvent and that their de- positors would lose nothing. The sec- ond episode was a run inaugurated against the Lincoln Trust Company. The run against this company was steady throughout the day. but the sums withdrawn were not large. It is an uptown institution with a great many women depositors and carried mainly personal household accounts. The run, however. was without impor- tance to the citys banking interests as @ whole.
 At the close of the day, the com pany's officials announced that they were fully able to meet all obligations.
 By far the most notable, even dfa- matic episode of the day, was the emptying of millions of money into the stock exchange through a pool headed by J. P. Morgan and other financiers in order to avert ruthless selling out of stocks held by brokers which was threatened because of their in- ability to obtain renewals of loans on which these stocks had been carried. Certain large interests of great finan- cial resources had been charging re- gently what was in effect, if not H. legally, usurious rates of interest on call loans. One institution that had been engaged in this practice. was it. self a member of the clearing house l and was severely criticized by other | bankers for it's action on the ground | that this added an unnecessary com l plication and strain to the money sit | uation
 AeBen0e0 OFAtAc1nms
 As a result of the criticism this in- stitution withdrew it's support and de- clined to offer money on call on the | stock exchange. The first effect of this | was to run the rate for money to 100 | per cent and when that figure was | quoted an extremely sharp decline re- suited in the stock market. Union Pa | cifc. a 10 per cent stock. ran down | to par. Notwithstanding the high rate | for call money that might have been | obtained, the National City Bank, John | D. Rockefeller, personally, and other | prominent moneyed interests sent | funds to the stock exchange to be lent | at the normal rate of six per cent. These sums, however, were not sum- cient to meet the demand and for a | time there was great confusion and hurried selling of stocks on the ex- change.
 At the time the excitment was at its height, the announcement was made that a pool had been formed. with J. Pierpont Morgan at its head, to come a. At. of fha tf l