The Columbia herald. [volume] (Columbia, Tenn.) 18??-1935, 1907-10-25
ANOTHER WALL
STREET PANIC
.kNIcKER5ockER TRUST CON-
PANY PAYS OUT es,oOO,Ooo IN
THREE HOURS.
THEN FORCED TO CLOSE DOORS
Secretary Of Treasury Bushes 70 New
York and Worst Seems
To Be Over.


under surface foundation of all bust
ness, trembled for a time today, and
before confidence could be restored
New York's second largest financial
institution had emptied its cash vaults
under pressure of the biggest run ex-
perienced here in a generation; a
Stock Exchange firm had failed for
s6 900. 600; Wall streets principal Sc
curities had settled from So to 50 a
share: call money had risen to 20 per
cent. and local bankers, unable TO
stem the tide of distrust, had been
forced to appeal for life to the Secre-
tary of the Treasury at Washington.
All this was in the face of reassur-
ing statements by the Acting State
Superintendent of Banks that the sus-
pected bank was solvent; declarations
bv 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 leglt-
| innate business was threatened.
Now that the first scare is over ano
the worst of the future discounted, II
is believed that local banking aralrs
will soon readjust themselves.
Secretary Of the Treasury Cortelyou
reached New York from Washington
tonight. He was met at Jersey City
by Hamilton Fish, Assistnt United
States Treasurer, and the two were
in earnest consultation during the
ferry trip to New York. Upon reach
ing this city they went at once to the
Hotel Manhattan, where several bank
ers later presented to the Secretary
the various phases of the local imam
c,al conditions. Secretary Cortelyo'
ia here to thoroughly look into TN
financial situation, which he has hat
under observation for several weeks
He has come with no preconcerte'
ideas OF how much money would D.
required to relieve the situation am
tbe matter of Treasury relief measures
will be determined by what ne Learns
tonight. He will do all that he cal
to relieve the present stress.
4 Before leaving Washington late tc
4 day Mr.. Cortelyou directed that 30
moo 600 be deposited with New Yorl
hanks as soon as the necessary co
lateral had been furnished, and at tn
same time he issued this statement;
aThe Secretary of the Treasury
keeping in close touch with the Dus
ness conditions throughout the couI
try. In the matter Of public deposit
he at all times consults the needs 9
the legitimate business interests an
will not hesitate to deal promptly an
adequately with any situation Una
may arise"
Mr.. Cortelyou's statement when r.
ceived here did much to put bette
face on things, and 1t was predicte
that the Secretary's visit would resu
in further deposits of $15.OoO,OOQ.
The Knickerbocker Trust Compan'
: the storm center today, having q
. posits Of $6O,OOO,OOO, paid out cash
depositors at the rate of $44,444 NIL
: ute for three hours today, and the
closed its doors The Directors ma
as they thought, fully prepared TOT
run and caused it to be announced
= today's papers that 100000 in cas-
}. was on hand to meet all eventuaii'ie
At 9: 80 o'clock few depositors VII
drew their accounts, and an no'
later hundreds were In hle 10 ta'
9 ont their deposits at the main om'
a at Thirty-fourth street and Fifth av
l. nue. and at the Harlem, the Bronx al
l. the Cowtown branches. The $SVV
Q 600 lasted until 1890, when Vice Frs
% ident Joseph T. Brown announced Ia
y the bank had no more cash avaiiaD
T. and payments were suspended.