The Havre herald. [volume] (Havre, Mont.) 1904-1908, 1907-10-25
CREDIT WAS SHAKEN
Foundation OF Business in New
York City Trembled.
TRUST COMPANY IN TROUBLE

Cash Vaults Emptied Under Pressure
of the Biggest Run Experienced in
Generaton-stock Exchange Firm
Fails for an Enormous Sum.
New York, Oct. 23.--Credit, the I'M
der-the-surface foundation of all busl-
ness, trembled for time Tuesday
and before confidence could be re-
stored, New York's second largest
financial institution had emptied it's
cash vaults under pressure CT the big
gest run experienced here in a gem
GRAFTON; Stock Exchange firm had
failed for $6,000,000; Wall streets
principal securities had settled from
S. to So share; call money had
risen to 70 per cent; and local bank
ers, unable to stem the tide of dis
trust, had been forced to appeal for
relief to the secretary of the treasury
at Washington.
All this was in the face of reassur-
ing statements by the acting state su
perintendent 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 legi-
innate 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.
After the doors Of the Knicker-
booker Trust company were closed
William Turnbull, the fourth vice
president, said to several newspaper
men: ."..
Bames President Roosevelt. $50
''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 The Knickerbocker
Trust company had assets way in ex-
cess Of it's 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 a
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 well who
mean" replied Mr.. Turnbull. "There
is no need for me to specify
Secretary of the Treasury George
b. Cortelyou reached New York from
washington at $3.50 O'Clock Tuesday
night He was met at Jersey City by
Hamilton Fish, assistant United States
treasurer, and the two were in earnest
conversation during the ferry trip tc
New York. Upon reaching this city
they went at once to the Hotel Man
haitian, where several bankers late,
presented to the secretary the various
phases of the local financial condl
lions.
Secretary Corte1you is here to thor
oughly look into the financial situa
ton, which he has had under observa
ton for several weeks. He has come
with no preconceived ideas Of how
much money will be required to re
lieye the situation and the matter O
treasury relief measures will be de
termined by what he learns Of the
situation here. He will do all that hi
can to relieve the present stress.
Before leaving Washington, Mr.
Cortelyou directed that $6,0O0,000 'bt
deposited with New York banks a:
soon as the necessary collateral hal
been furnished and at the same time
he issued this statement:
In Close. Touch With Conditions.
THE secretary Of the treasury Il
keeping in close touch with the bust
ness conditions throughout the coun
try. In the matter of public deposit
he will at all times consult the need
OF legitimate business interests AM
will not hesitate to deal promptly ant
adequately with any situation tina
may arise"
Mr.. Cortelyous statement when re
ceived here did much to put bette
face ON things and it was predictet
that the secretary's visit would resul
in further deposits of $15,00o,00O.
The KnlckerbOcker Trust company
the storm center Tuesday, paid GU
cash to depositors at the rate of s44
444 minute for three hours and the1
closed it's doors. The directors had
as they thought fully prepared for
run and caused to be announced il
Tuesdays papers that ss,000,Oo0 Il
cash was on hand to meet all eventual
tiles
At $50 o'clock few deposition
withdrew their accounts and an hou
later hundreds were in line to take on
their deposits at the main office a
Thirty-fourth street and Fifth avenue
and at the Harlem and Bronx and tn
down town branches. The 100000
lasted until 1880, when Vice Pres1
dent Brown announced that the ban