The daily morning journal and courier., 1907-10-25
SUM
 10 RIDE STORM
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lV tEU1 CbUEsNl
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 matic episode of the day was the emptying of millions of money into stock exchange through a pool headed by J. P Morgan and other finaneiers in order to avert a 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.
 Charges Usurious Rates.
 A remarkable condition brought about this extreme stringency in money, which had gradually forced the interest rate up to an almost unprece- dented figure. Certain large interests 1 of great financial resources had been | charging recently what was in effect, if not 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 and was severely criticized by other bankers for It's action on the ground | that this added an unnecessary com plication and strain to the money sit- uation. As a result of the criticism this institution withdrew its support and declined to offer money on call on the stock exchange. The effect of this was to run the rate for money to-day up to 100 per cent. and when that fig- ure was quoted an extremely sharp de- cline resulted In the stock market, Un- ion Pacific. ten per cent. stock, sell- ing down to par.
 Rockefeller Supports One Bank.
 Notwithstanding the high rate for call money that might have been ob tained 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 rates of 6 per cent. These sums however, were not suffi- 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 when the excite ment was at it's height the announce tment was made that 6 pool had been formed with J. P. Morgan at it's head to come to the rescue of the brokers for whom 1t was necessary to provide funds at once in order that they might cafry the stocks they were holding for their customers. The Morgan pool brought sum of money amounting 10 about $25O00,0O0 Into the loan corner Of the exchange where it was ouicIsly distributed in such lots as woId be most effective in rendering support. | Relief Instantaneous.
 The effect of this relief measure was instantaneous and the rate on call money dropped from 100 per cent. to 10 per cent. Stocks advanced more rap l idly than they had declined and 1t was only a few minutes until Union Pa- cifc, the market leader, was selling at 1OS. Other stocks were similarly affected and the rally was complete seldom If ever had the veterans of finance seen great situation saved SO quickly and so effectively by such a Napoleonic stroke. When the stock exchange closed every one was getting all the money he wanted. The close was marked by a memorable seems in which the brokers gathered around the Iprincipal trading posts and gave three cheers for J. P. Morgan and the mem bers of the pool which had saved the day.
 | s100,0O0, 900 Contributed.
 The aggregate amount of money which had been contributed In order to weather the storm and restore conf dence assumes truly colossal propor- tions. Roughly estimated 1t includes | $25,OOo,OOo which Secretary Cortelyou deposited in the New York banks, S95.- OOO,00O which the Morgan pool brought to the floor of the stock exchange. S1O,0OO,000 which John D.. Rockefeller deposited with the Union Trust con- pany as a means of stemning the tide at the Trust Company of America: and finally another $5OOOO.OOo which 1t is understood MT. Rockefeller stood ready to advance to meet any further stress of conditions, in all considerable fin excess of $100, 000,000
 To RehabiIitate Knickerbocker.
 The developments of the evening dur ing which, as was the case last night there were several conferences, incIud ing the issuance by State Comptrollel Martin H. Glynn of statement on tn, local financial situation and the an nouncement of plans for the rehabili tation of the suspended Knickerbocker The tentative plans for the Knicker booker as outlined by one of the offlc ials following meeting of the board of directors late to-day, provides fol the formation among the directorat, of pool of some $5,000000 to guaran tee the redemption within two years O interest-bearing certificates which will be offered in settlements of accounts against the company, which cannot b, llquidated at the present time.
 AS preliminary step, 1t was said that 8 receiver for the company would be appointed within a couple of days with the approval of the directors When the success of the certificate is sue is assured, the board will ask tha the rescript be terminated with a viev to @ resumption of business.
 President A. Foster Higgins has of fered to put S5,oO0,ooO in the pool. I was given out that after investigatior the securities left for the ice loans b,