The Lee County journal. (Leesburg, Ga.) 1904-19??, 1907-11-01
DOORS OF BANK
CLOSED TIGHT
Knickerbocker Trust Co. Caught IN
Wall Street Financial Furry.
DEPOSITORs MADE RUN
Shaky Monetary Situation in New York
Causes Secretary CortelyOu to
Rush Into the Breach.


Credit, the underestimate foundation
Of all business, trembled for a time
in New York Tuesday, and before con-
fdence could be restored. the city's
second largest financial institution
emptied it's cash vaults under pressure
of the biggest run experienced locally
in a generation; a stock exchange firm
had failed for $6,OO0,OOO Wall streets
principal securities had settled from SIS
to So a share; call money had risen
to seventy per cent and local bankers.
unable to stem the tide of distrust, had
been forced to appeal for relief to
the secretary of the treasury at Wash
ington.
The Knickerbock Trust company, the
second largest trust company in New
York city, with deposits amounting to
about $50, 100000 closed its doors at
1870 Tuesday afternoon, following a
steady run of persons who called to
withdraw their deposits.
The company's officials declared that
the suspension of payment was only
temporary.
Secretary Of the Treasury Cortelyou
announced from Washington that he
would support the New York city ma
tional banks, and it was understood
that he would order the deposit of
$4,000 900 of government funds in the
city as soon as satisfactory security
for the sum should be received.
A loan of 100000 was made on the
stock exchange shortly after o'clock
at 20 per cent. Several bankers form
ed a pool of s4,O0O,OO0, which was
loaned at between 40 and so per
cent.
The KnickeFbocker paid out cash
to depositors at the rate of $44,444
minute for three hours, and then
closed it's doors. The directors had,
as they thought. carefully prepared
for run and caused to be announced
in the days papers that $8,00OO00 in
cash was on hand to meet all eyentu-
alities.
At $3.50 o'clock a few depositors
withdrew their accounts, and an hour
later hundreds were in line to take out
out their deposits at the main office,
at Thirty-fourth street and Fifth ave-
nue., and at the Harlem, the Bronx and
the downtown branches.
The s8,OOO,OO0 lasted until 1870 ..
m, when Vice President Joseph T.
Brown announced that the bank had
no more cash available and payments
were suspended. Mr.. Brown said that
the bank would open Wednesday and
payments be resumed at 1920 o'clock.
The Knickerbocker, 1t was announced.
had ample securities to meet all de-
mands, was perfectly solvent and it
was only a question of raising the
cash, when all depositors who wished
to withdraw could do so.
Secretary of the Treasury George B.
CorteIyou reached New York from
Washington at $3.50 Tuesday night.
He was met at Jersey City by Hamil.
ton Fish, assistant United States treas
urer, and the two were in earnest con.
versation during the ferry trip to New
York. Upon reaching the city, they
went at once to the Hotel Manhattan,
where several bankers later presented
to the secretary the various phases
of the local financial conditions.
Secretary Cortelyou will thoroughly
look into the financial situation. which
he has had under observation for sew
eral weeks. He came with no precon-
ceived ideas of how much money will
be required to relieve the situation,
and the matter of treasury relief meas
ures will be determined by what he
learns Of the situation. He will do all
he can to relieve the present stress.