The Morris County chronicle. [volume] (Morristown, N.J.) 1877-1915, 1907-10-29

tempted to keep the bottom from az
together dropping out of the market,
until the principal securities were
selling anywhere from IS to SIS below
their low prices of the day before.
When the final announcement came
that the Knickerbocker- Trust Com
pany had closed It's doors the market
was verging on Generalization
1t took just three hours to pay the
$8,000,000 out and leave the Knick-
erbocker vaults almost bare of cash.
The company suspended payments be-
cause not single financial institu-
ton in the city would aid it, The
reason for that hands of" policy
was announced by representative of
bankers who had been in conference
with j. P. Morgan and Secretary Of
the Treasury Cortelyou in the Union
Club. The banker said that the
Clearing House and j. F. Morgan,
having found that the surplus and
the capital of the company had been
impaired through bad management,
had refused to give assistance. The
Clearing House is willing to go to the
aid of any trust company that is in
need and is willing to throw out Of its
directorate men who have been called
wreckers.
The rapidity Of developments, cul-
minating in the suspension of the
Knickerbocker Trust Company, over
Swallowed the original causes of the
financial cataclysm that precipitated
it. The Heinzes, the Thomases, Chas.
W. Morse, Charles T. Barney, were
but vaguely associated in the public
mind with existing conditions.
Mr.. Barney was naturally the most
interesting figure in the group of de-
posed presidents of financial institu-
tions. His embarrassment was d.
rectly attributed to his extensive real
estate operations in connection with
Mr.. Morse and other promoters of
extensive land and building opera
lions.
On the Stock Exchange one failure
of Importance, that of Marcus Mayer
& Co., stock brokers, with liabilities
of $6,000,000, was announced just
before the close of business during
the day. In connection with it sensa-
tional rumors were circulated, con-
Meeting the collapse with the failure
of customer intimately associated
with mining ventures and sporting
affairs to meet obligations incurred
by the firm for his account. This
could not be verified, and was gener-
ally classed with similar reports cur
rent during the day which reflected
ON the financial standing and credit
Of individuals, firms and institutions.
A statement which was given out in
Washington ran as follows:
"The Secretary of the Treasury is
keeping in close touch with the bust
ness conditions throughout the coun-
try. In the matter of public deposits
he will at all times consult the needs
of legitimate business interests and
will not hesitate to deal promptly and
adequately with any situation that
may arise"
The Country's Banks Are
in Sound Condition.
New York City.-Dispatche to the
Tribune from all sections of the coun-
try indicate that the financial situa-
ton is excellent, and practically no
apprehension is felt because of af-
fairs in this city. The banks in Chi
cago and many other places were re-
ported to be on sound basis.
1t was said that there was sufficient
money not only for the ordinary de-
mands of business but for the moving
of all the grain crops of the West.
Stock markets were somewhat affect
ed, however.
Head of Clearing House Calls Halt
on High Finance" Gambling.
New York City.-The following is
an extract from remarkable inter-
view with W. a. Nash, president of
the Clearing House: Business has
been carried on with too little regard
for the safety of the depositors and
with far too great attention to the
profits OF the men at. the head of
these institutions.
We need a higher degree of hon
esty in the Offices of many of our in
stitutions The time has come when
the gambler and so-called high
financier' must go. What / say APP
plies just as much to one kind Of
banking institution as another"