Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1907-11-01
THE MONEY CRISIS OF 1907.
Recalls Panic of 1873, When President
Grant Himself Stepped In.

On May 9, 1901, the Northern Pa
cific panic prevailed in Wall street,
but it was confined to the stock ex-
change and the brokers' offices, and
the only visible demonstrations Of 1t
were those pictured by throngs Of
rushing messenger and office boys.
But for the first time in many years
| Wall street has this week been in pos
session Of a great throng. majority
of whom no doubt were inspired by
curiosity, and yet a large minority by
fright, which impelled them to demand
Of the Trust Company Of America the
return of their deposits. 1t was a
demonstration new to this generation
| n Wall street.
Something like it was seen for a
few hours at the time Of the disaster
which befell the old Metropolitan Bank,
and in 1873 long lines gathered in
front of the savings banks, being in
spired by fear and at least controlled
by that kind of fear which Is a peril to
lives and property. Upon that occa-
sion, not the secretary Of the treasury,
but the president himself, General
Grant. came to New York and was In
consultation until long after midnight
at the Union League club, a Sunday
night, fortunately, for upon that day,
every bank being closed. 1T was not
possible to maintain a run against any
one Of them.
| General Grant and the Clearing
House association had the situation
we'll in hand before the president de-
rarted for Washington. and although
the business decentralization continued
and industry remained stagnant for
many months. yet the banks of New
York city were abundantly fortified so
that they were able to stand supreme
obstacle against widespread financial
disaster of a kind involving the whole
fabric of the national bank system.
| What President Grant and the Clear
ing House association, under the bril-
liant leadership Of the late Frederick
D. Tappen, accompanied in 1873, the
Clearing House association and the
strong men in it in association with
the secretary Of the treasury believed
on Wednesday that they were abun-
dainty able also to accomplish. In
other words, abundantly able to pro-
tect the national banks, since these
constitute the citadel Of American A.
nance.
Very likely one of the most beneficial
results of this tempest will be change
in the methods adopted by many OF
1.-THE trust institutions. especially the
Younger ones Every experienced bank
er has known that danger lurked In
these methods. A part Of them Is
lcurable by legislative action, but 1t Is
believed that the time has come when
There must also be extended to the
TRUST institutions authority similar TO
THAT which the Clearing House asso-
citation possesses over the national
banks and some state banks of this
lefty.
In the first place, the experience of
1.-THE Knickerbocker Trust has demon
strated the danger Of conducting a
banking institution without maintain
lin. a reserve fund, and in such amount
as the experience of fifty years in this
city has shown to be wise. Trust in
stitutions should be compelled either
to return to the original vocation for
which they were first chartered in this
state namely to handle trust funds
and to act as trustees, or else If they
undertake regular banking business
they should be compelled to conform
to the regulations which have been
found wise and proficient in the con-
duct of national banks.-Holland in
philadelphia Press.