The daily banner. (Cambridge, Md.) 1897-2008, 1907-10-23
N,Y,TRUST CO,CLOSES'
The knickerbocker is Forced to
Suspend Payment.
THIS ACTION FOLLOWS RUN


3 1-2 Hours, and Payments Are sus-
pended Until Cash Is Raised-Offi-
Gals Insist Bank 10 Solvent.
New York, Oct %. - Credit. the
under-the-surface foundation OF all
business, trembled for time, and be-
fore confidence could be restored New
Yorks second largest financial mstl-
tuition had emptied its cash vaults
under pressure of the biggest run ex-
perienced here in generation;
stock exchange firm had failed for 80
000, 1000; Wall streets principal secarl-
ties had settled from S. to 50 snare;
call money had risen to 20 per cent,
and local bankers, unable to stem the
tide of distrust, had been forced to ap-
peal for relief to the secretary OF the
treasury at Washington.
All this was in the face OF reassur-
ing statements by the acting state
superintendsnt of banks that the sus-
pected bank was solvent: declarations
by prominent bankers that there was
no true basis for alarm, and assur-
ances from Washington that Secretary
Cortelyou would not hesitate to act
promptly in any situation where legltl-
mate business was threatened. NOW
that the first scare is over and the
worst of the future discounted, it is
believed that local banking affairs will
soon readjust themselves.
Secretary of the Treasury George
B. Cortelyou reached New York from
Washington. He has no preconcelVed
ideas how much money will be re-
ouired to relieve the situation, and the
matter of treasury relief measures will
be determined by what he learns. He
will do all that he can to relieve the
present stress.
CorteIyou Aids Banks.
Before leaving Washington Mr.. Cor
telyou directed that S6.o00.000 be de-
posted with New York banks as soon
az the necessary collateral had been
furnished.
The Knickerbocker Trust company,
with deposits of s60,000.000, paid out
cash to. depositors at the rate of $44,-
444 a minute for three hours. and then
closed its doors. The directors had,
as they thought. fully prepared for
run and caused to be announced in
the papers that sS.0O0,OO0 in cash was
on hand to meet all eventualities.
When the doors opened few de-
positors withdrew their accounts. and
an hour later hundreds were in line to
take out their deposits at the main
office at 9th street and Fifth avenue,
and at the Harlem. the Bronx and
the downtown branches. The $4,000
900 lasted three hours, when Vice
President Joseph T. Brown announced
that the bank had no more cash avail
able, and payments were suspended.
The Knickerbocker 1t was announced,
-hfar4txena PIE securities to meet all de-
mands. was perfectly solvent, and it
was only question of raising the
cash. when all depositors who wished
to withdraw could do so. Desperate
efforts are being made by the officials
of the Knickerbocker to get in their
loans and otherwise replenish their
cash vaults.
BIames President Roosevelt.
After the doors of the Knicker,
booker Trust company were closed
William Turnbull, the fourth vice
president, said:
"All the disturbance in the money
market has been caused by one man,
who in the past six months in public
and private speeches has been grad
ually undermining the credit system
OF the country. Monday night the
Knickerbocker Trust company had as
sets way in excess OF its liabilities.
and In one night the confidence of it's
patrons and its credit were destroyed.
This was brought about by one man.
and that man who knew nothing
whatever of the credit system"
One of the reporters asked Mr..
Turnbull whether he was referring to
President Roosevelt.
You know perfectly we'll who l
mean" replied Mr.. Turnbull. There
is no need for me to specify"
Acting State Superintendent OF
Banks George L. Skinner. who had
expressed confidence that the bank
would meet all obi cations, qualified
his position when he issued the fol-
lowing statement:
1.-THE knickerbocker Trust company
is not without hope that it may still
receive adequate aid from financial
institutions Ii it does, it will open its
doors as usual If it does not, it will
not open its doors in the morning.
and |. of course, shall act under the
advice of the attorney general. who is
made by law the legal adviser of the
state banking department"
Bankers not directly associated
with the Knickerbocker were quite as
anxious that its integrity be main
tanned, and many conferences were
held with view to putting the Knick-
erbocker Oh its feet, if this could be
accomplished without weakening
other institutions.
German Bankers Astounded.