The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-12-31
MEMORABLE YEAR
IN FINANCE n N Ending [: |. ]
Greatest Panic IN Country Since
That Of 1893 Closes Witt,
Year.
HISTORY OF BIG UPHEAvAL
Unusual Speculation eliminated
in Silent Panic and Real
One.

IL---------------.
NEW YORK, December so.--The wear
1907 has been one In which there has
bee much making or financial history.
, viii go down With 1851, 1873 and
1888 as one OF the panic years in
american finance. The year opened
tiers that speculation had already been
carried to an ,nnwarrarted height, and
that prudence was imposed by condi-
lions upon bankers and capitalists. But
the extent to which capital resources
had been strayed was not revealed In
Q, striking manner to the general public
until the silent panic of March 18th.
now almost overslladowed by later
events. but at the time one of the most
tLe market has ever suffered.
The loss OF nineteen points In Anal
enmatcd Copper in single day. TWEEN
tN-one points in American Smelling.
twenty-five In Reading and twenty
five in Union Pacific, wiped out mar
gins, compelled the calling OF loans,
and wrecked the fortunes OF many
ereculators.
storm breaks In Fury.
The market recovered only slowly
during the spring and early summer.
- suffer new reactions In August. but
IT was not until mid October that the
storm broke in all It's force, with the
collapse OF the corner in United States
bank to the clearinghouse for help.
and the refusal to extend such help
until the old control was eliminated.
The knickerbocker Trust Company
was closed October ed. after paving
ont about tS,000.Oe0 In cash, and runs
began upon the Trust Company of
America which called for the dis.
bursement Of s3i.oOo.oOo. and upon the
Lincoln Trust Company, which SUI
fcred a nearly proportionaie losa OF
deposits. The suspension OF cash pay
ments by practically ali the banks,
and the decision on Saturday. October
2sth. to Issue clearing house certificates
on the following Monday. marked the
eliminating stages Of the crisis.
Treasury 10 the Rescue.
York and deposited about s30,o00,ocO
OF public money in the national banks
of the city.
Foreign exchange. which had been
adverse. fell to the gold impor, point.
md by November 10th engagements OF
gold for import had reached s50.000.000.
and before the close OF December about
sl0s.o0o.hoo. Notwithstanding these
measures of relief. the country banks
and the public swallowed up in the
week ending November.o about $50. 000.-
900 In currency. Government deposits
amounting to nearly $4,000. 900 disap-
peared and loss In cash reserves of
the banks was disclosed OF $S0.601.S00.
AT the same time the bank and trust
company situation reached one OF Its
most critical stages The advent OF
extra holiday on election day, Soyenl-
Der 5th. afforded breathing spell for
a combination among the trust com-
panies to protect those upon which
nouncement Of this plan on Wednesday
turned one, of the most dangerous
points OF the situation.
Extrnord,nnry Relief Plnn.
It was not until ten days later, how
ever. that Secretary Cor,elyou an
nounced his plan for drawing money
from boards and permitting an increase
in the bank-note circulation by the
offer TO the public OF s50.000.00O in 2
Per cent Panama Canal bonds and
500, 900, 900 In one-year certificates,
bearing interest at per cent. This
accompanied By vtgor-
GUS letter from President Roosevelt,
did much. in the opinion of many
p
eventually it was necessary TO issue
only about so5.oO0.o00 OF the bonds and
$4,000, 900 of the certificates.
While these measures tended TO re-
store confidence to a certain degree.
there was no indication OF the renewal
OF business activity for some. wee KS,
"A premium upon currency which had
run as high as 4 per cent. continued
in force all through November and
December.
National Banks Stand storm.
The national banks have stood up
under the pressure much better than
81 the early stages of the crisis IN
1893. The suspensions at that time
were about $50 in the three months Of
June. July and August.
The number OF national bank sus-
pensions hardly edualed dozen during
the recent panic. the most important
being that of the National Bank Of
Commerce, of Kansas City. The per-
manent effect upon the national banks
ing system OF the scarcity OF capital
terprises has not yet been revealed,
but there are no indications that twill
be so severe as the panic OF 1893, when
the number Of rational banks declined
from 1854, tonS June l,1s93, to 1855, OIL
April l.. 1899. and the capital de-
clined from $698,45A,66.. on June l,
1899, to minimum of s607,41s.045, on
October /, 1888.
Large Exports Bring Gold.
Imports of merchandise, which hal
been Us much as s126,sG6.043 in August,
fell to an average Of about S109.00o,-
900 for the next three months. ending
with $l10,7ss,109 for November. En-
ports of merchandise on the other
hand which had been as low4as s127,-
110,447, In August, advanced to $1S0,-
156,0S5 in October, and s204,4+4,s6O in
November. II
. The old year ends with price of COM
mod tiles and securities much lower than