The Marion daily mirror. (Marion, Ohio) 1892-1912, 1907-10-25
'l.P. MORGANS POOL
AVERTS A PANIC
COMES TO RESCUE OF STOCK Ex.
CHANGE MEMBERS.
LENDS MILLIONS or MONEY.
Crisis in the Nevvs York r inannsi Stu.
ation Is Believed tofbc Passed, in
Spite Of the Failure OF Three
Small Banks.

New York, Oct 25.--As q result OF
Thursdays Developments in the finan
oial world there is every indication
that the crisis In the banking and
trust company situation has been
safely passed. The Trust Company Of
America all through the day paid out
money to depositors and closed the
day with all demands having been
met
The day was marked by noteworthy
episodes. First came the announce
ment OF trouble in three minor state
banks in Harlem--the Hamilton bank.
the Twelfth Ward bank and tn. En-
pirc City Savings bank. These banks
transacted only a neighborhood busi-
ness and their suspension of payment
was absolutely without significance as
bearing on the general situation. The
Empire City Savings bank was con
troled by a Tammany Hall politician
and its business operations were con
fined to a small area. Although these
banks were obliged to close because OF
lack of ready cash. State Bank Exam
iner Judson declared that all three are
ssolvent and that their depostors will
lose nothing.
BY far the most notable episode of
the day was the emptying OF millions
OF money into the stock exchange
through pool headed by }. p. Morgan
and other tinanciers In order 10 avert
g ruthless selling out of stocks held by
brokers which was threatened be-
cause OF their inability to obtain re-
newals of loans on which these stocks
had been carried A remarkable con-
dtion brought about this extreme
strngency in money, which had gradu-
ally forced the interest rate UP to an
almost unprecedented figure. Certain
large interests with great financial re-
sources had been charging usurious
rates of interest on call loans. One
institution that had been engaged in
this practice was member of the
clearing house and was severely criti'
cized by other bankers for its action.
AS a result Of the criticism this in
sttution Withdrew its support and de-
clined to offer money on call on the
stock exchange. The effect of this
was to run the rate for money up to 90
per cent and when that figure was
quoted an extremely sharp decline re-
suited in the stock market, Union Pa
cihc. a 10 per cent stock. selling down
to par.
Notwithstanding the high rate for
call money that might have been OBJ
tanned. the National City bank, John
d. Rockefeller and other prominent
moneyed interests sent funds TO the
stock exchange 10 be lent at u per
cent. These sums, however, were not
sufficient to meet the demand.
At the time that excitement was at
It's height announcement was made
that a pool had been formed, with j.
p. Morgan at its head TO come 10 the
rescue of the brokers for whom II was
necessary 10 provide funds at once, in
order that they might carry the stocks
they were holding for their customers.
The Morgan pool brought $2500O,OOO
into the loan corner Of the exchange,
where II was quickly distributed
The effect of this relief measure
was instantaneous and the rate OH call
money dropped from 100 10 10 per
cent. Stocks advanced more rapidly
than they had declined and 1t was only
a few minutes until Union Pacific, the
market leader was selling at l01.
Other stocks were similarly affected
and the rally was complete. Seldom,
II ever. lad the veterans of finance
seen great situation saved so quickly
and so effectively by such Ma
poleonic stroke.
When the stock exchange closed
every one was getting all the money
he wanted The close was marked by
memorable scene, in which the brok-
ers gathered around the principal
trading posts and gave three cheers
for ]. Pierpont Morgan and the mem
bers OF the pool which had saved the
day.
The aggregate amount OF money
which was contributed in order to re-
store confidence assumes truly colos-
sal proportions. 1t amounted to Sll0,-
OUU O0O