New-York tribune., 1907-10-25

departure a last hurried trip to tie Sub-Treas-
ury was made by George w. Perkins.
The participants in the pool which at the
critical moment in the afternoon lent S25, OO0
the Stock Exchange were J. p. Morgan &
Co. the National City Bank. the First National
Bank. the Hanover National Bank the National
Park Bank. the Fourth National Bank the Ma
uonal Bank Of Commerce and the Chase Ma
tionai Bank.
Tho money market yesterday opened about
half an hour earlier than on wednesday. Mann
Hill e. Ware lent for the National Copper Bank
about 100000 to $500 900 at 30 per cent, the
first money that came the board; then MT
Mann lent for the First National Bank about
S5,00a,O00. Scattering amounts came IN later
which loaned at 20 and so per cent, the rate
touching 100 per cent at about 1870 o'clock Ihe
First National Bank lent another block at hlIu-
day. The National City Bank, as is its pFac-
tice. lent at per cent through the forenoon TO
the extent OF about S:i,OO000O or S4,ooOooo
Kuhn. Loeb & Co were considerable lehNerS al
various periods during the day.
Frron,1 O'Clock to 2:30 there were no other
amounts of any importance at the call money
post. The orders for call money were poured
in on the money brokers from all quarters, but
nothing was forthcoming, and the anxiety grew
intense At about go o'clock J. z. Morgan d
Co sent about S2OOoOOO0 into the board. This
money was eagerly seized by the brokers. the
rates varying from 30 per cent to 10 per cent.
At $50 the demand still unsatisfied ana
Mann. Dill & Ware were given fresh block
of about S5.O00,000 by J. p. Morgan & Co.
which they loaned satisfying all demands and
Offering the money down 70 per cent at $40
with no takers left.
The effect of this relief measure was instan-
taneous. As the rate on call money dropped
from 100 per cent TO 10 per cent stocks ad-
vanced more rapidly than they had declined.
and within few minutes Union Pacific. the
market leader. was selling at 100. and other
stocks moved similarly. Seldom if ever had the
veterans of finance seen a great situation saved
so quickly and so effectively. The close of the
Stock Exchange was marked by a memorable
scene. in which the brokers gathered around
the principal trading posts and gave three
cheers for ]. Pierpont Morgan and the MEM
bers OF the pool which had saved the day.
The situation from which they had been res
cued was indeed one of extreme difficulty and
danger The selling which broke Union Pacific
to par and caused the whole list to decline so
severely not short selling, but represented
principally the closing out of customers accounts
by brokers who, through inability to borrow
money from the banks, found themselves IN
position where they could no longer carry their
customers.
out any agreements as TO rates, it is said, the
rates being made by the money brokers after
the rush to borrow was over After the close Of
the exchange each borrower sent to the office
of the money broker from whom he had OBJ
tanned his loan the collateral representing the
amount. The money broker took the collateral,
and in exchange gave the borrower a check on
one OF the banks associated with the pool The
borrower had the check certified at that bank
and then deposited it with his own bank. At
some OF the banks the clerks busy until
late in the afternoon certifying checks or re-
ceiving deposits of certified checks.
Ransom H. Thomas president Of the New
York Stock Exchange. made emphatic denial
last night of a report that at > p m. when
Union Pacific dropped to par and 100 per cent
was bid for money. he informed j. p. Morgan &
Co. that the exchange would have 20 be closed
unless money was forthcoming. He said:
There is not a scntilla of truth in that re-
port There is absolutely nothing to justify its
inception in any way, shape or form
Another report was that President Thomas
and several members Of the Stock Exchange
governing committee had called on Mr.. Morgan
before the opening of business and had then ex-
plained to him in detail the necessity for placing
funds at the disposal OF Stock Exchange bor-
rowers
II was at the Clearing House yesterday that
il had been determined not 10 give out here
after the debit and credit balances Of the vari-
GUS banks. The probable reasons are that, in
the public's present nervous state, j run might
be precipitated upon some institution which
showed heavy debit. The Mercantile National
Bank it was learned, had a credit balance of
| excellent proportions yesterday at the Clearing
House.
The general banking situation the sub
Ject Of discussion by leading New York bank
ers at the Clearing House yesterday morning.
J. Pierpont Morgan and James Stllman at
tended this conference, and the following were
| also present: William A Nash, president Of the
Corn Exchange Bank; George +. Baker and II.
z. Dawson, respectively president and vice
president Of the First National Bank; Alex
ander Gilbert, president of the Market and Full
ton National Bank and president of the Clear
! ing House Association: Samuel Woolverton,
president Of the Gallatn National Bank, and
! a. b. Hepburn, president of the Chase National
! Bank. AS advisory member Of the COM
mittee OF five appointed at Wednesday after
| moons conference TO act a clearing house
| committee for trust companies Mr.. Morgan dis
| cussed with the Clearing House committee some
/ Of the immediate problems which the larger
banking interests have to solve
! After Mr.. Morgan had been at the conference
! one hour and half he drove, with Mr.. Still
man. to his Wall street Office. AS he stepped
into the carriage Mr.. Morgan was asked:
/ rs the general situation any more assuring
than yesterday"
Yes, it is" Mr. Morgan said, as he closed
the carriage door
| 1t was said that some of the topics of the
conference were Mr.. Rockefeller's offer OF fnan-
! cial aid; the aid offered by the United States
! Steel Corporation (Which has any part of $780,
100000 to put in local banks IL necessary: the
decision Of Secretary Cortelyou to put s25 O00,