New-York tribune., 1907-11-25
RESUME OF THE PANIC.
TRAGEDY and COMEDY.
HOso the Country-Wide Financial
Squeeze Gre1C from Small Failure.

superficial developments of the panic. Some OF
these are mentioned. even vet. with the old
shiver of alarm. IN many OF them. however. Is
found humor; In others tragedy.
For instance. back in Kankakee the expert
ence of the old tight wad'' money lender who
went to the city to collect a note insisted on
currency and had to charter truck and a
freight car TO get Il home is greeted with up
roarious laughter. But the story OF the little
widow Just around the corner is recalled in
silence Her small sum was in a city bank
which closed. She 81 Cd before it's doors a
whole night and day. and came home. when
the suspension notice posted weakened in
body and literally scared to death
The man who gets change for clearing house
certificate from a streetcar conductor smiles.
but the poor workman who was paid in a check
late Saturday night goes home to find
hunger and empty larder, Is unable to
cash his check until Monday, and has little OF
the rnirthful TO contemplate His solace. that
makes up for a lot. however. is that he has a
Job awaiting him Monday morning
The whole trouble seemed TO start from one
apparently-at that Observation-Disclosures failure.
The failure, however. was followed by ruuors
involving the names Of several prominent bank
ers. These were soon forced out Of Office. and
runs started on their banks. The trouble
spread in waves over this city. The COM
munty's spine was shaken with the cold chills
of panic and the ague passed in waves from
Wall Street to Harlem. The Bronx. Brooklyn
and Williamsburg. Bank officers who had been
skating on thin ice scrambled for the shore, but
their moves only shattered what support they
had had and they found themselves struggling
In the cold black water OF the law
On this phase OF the situation a Harlem bank
president who has been active in the banking
world for nearly twoscore years commented
yesterday.
BANKER ON THE PANIC
''There are many bankers. cashiers. book
keepers and clerks Included he said, who
would live TO old age without the blight Of dis
honor if there were such thing as bank
runs and panics. a man may have invested the
money he has 'borrowed'-quote that word.
please-so safely that he will actually be abls
to return 1t If everything goes right. But the
first thing he knows his bank is involved in
trouble like that we have Just passed through
and he finds his books in the hands OF the banks
examiner. Before jumping on necks with hob
nails in our boots. let's stop and think now
MANY honest men to-day would have had the
blight of states prison on their past had a
financial furry occurred at Just the right or.
rather the wrong time Who can tell?
The panic passed over the country like a
wave with its start in Manhattan Island. This
waves progress is reflected in the news dis
matches The day of the first trouble here, Bos-
ton Philadelphia and Pittsburg were sending
in optimistic reports in Il told you So tone
The next day the dispatches from these cities
told of precautionary measures Then the pre-
cautions were taken up by cities a little further
on. and those near by found themselves in
voIved in runs and suspensions. And il
went until the wave broke itself. to speak, on
the Pacific Ocean and the Gulf of Mexico
The cities through it all have been the great
est sufferers The directors and other officers
of the banks in the country and the small
cities know nearly every one OF their deposltors
personally. When trouble is brewing and these
come around with blood in their eyes and bank
books in their hands the officers Just call them
into the upholstered back office and explain the
situation.
DIFFERENT KINDS OF RUNS
There have BEEN bankers say. three kinds %
runs-panic runs. silly runs and runs started
by mistake. The panic runs were the general
order resulting from the unsettled state OF
credit 4 number Of depositcrs line up to with
draw. others see them and get the habit. as IL
we're and soon the line can be disniied by
the title run
At least two runs in this city were started by
mistakes in newspaper stories about the general
banking situation One OF these was due TO the
fact that many persons read no further than ths
headlines of the article. The neighborhood in
a way in the headline Of an afternoon news
nsner that n misleading statement was made
about a bank that was perfectly solvent and in
no trouble. a run the next morning was tho
result. although the body OF the article stated
the facts correctly.
A run on a bank up the state was caused IN
this way: The cashier got a telephone message
from home that some medicine was needed I'M
mediateIy for the baby. The cashier called an
Office boy, followed him to the door OF the bank
in telling him the erTand, and sped him on MS
way with the admonitiOn- Now run IN
fortunately two or three panicky depoSitors were
entering and heard only the word run COM
ing from the cashier. They were influential men
in the community, and when they Immediately
drew out all their deposits their example was
follov,ed b,y several Others. Rumor took up the
case there and handled ie IN its old thorough
going manner.
The use OF clearing house certificates and the
nrerofum on money have resulted in some curious
,oider+s In St. Louis the certificates were ac-
oeDts5 ON streetcars In one town in sthe-Afddls
Iyast vvbere the lack of currency was peculiarly
felt the merchants. nearly all of whom were
manufacturers paid their wOrkmen in the old
fashioned shin plasters." and the town is now
in possession Of currency Of its own. supple
mented by that of Uncle Sam
LOTS OF SILVER USED.
Restaurant men downtown. especially propri-
etors of the grab-and-run shops. say they have
never in their lives seen so many silver dollars
and so much small gold One OF the cheaper
restaurants in closing business Friday night
had more than 5000 in silver dollars. Most %
these were bright and new. but dated from 1870
to 1880. The young woman cashier, who here
tofore has done the banking for the concern.
--r~ hnr