Daily press. [volume] (Newport News, Va.) 1896-current, 1907-10-25
RATES 100 PER CENT At ONE THE
Money Put in by the Bankers, How
ever Sent it Down to 10 per Cent.
in a Hurry-one of the Most Mem
orabIe Scenes Ever Witnessed on the
Stock Exchanae-Three Small Banks
Go Under.
Go Under.
(By Associated press.l

NEW YORK. Oct 2i-As a result
OF today's developments i'll the inan,
clal world there is every indication
that the crisis in the banking and trust
company situation has been sntisfacI.
orily passed.A The Trust Company of
America all through the days bank.
ing hours paid out money to deposit.
ors as rapidly MS possible and closed
the day with all demands having been
met. favorable feature Of the situa.
ton respecting this company was that
IL was able TO make its payments with
very little assistance and another was
the company received over it's couil-
ters in the morning hours in ordinary
deposits more than 100000. 1t was
tie general impression in financial cir.
Giles that this company having with.
stood today's run with so little troui-
Bile was undoubtedly in good condi-
ton to continue Its business and in
fact that the company and its affairs
We're not considered as n factor any
longer in the general situation AS
the Trust Company of America has
been the center of the recent ilnancial
storm ii was accepted that the ability
II has thus shown to weather the storm
was a clear indication that the inan.
OF fair weather was now well in sight
The day was marked by three note
worthy episodes First and earliest
in the day came the announcement of
trouble in three minor state banks in
ilarlem-the Hamilton bank. the 18th
Ward bank and the Empire City Saw.
ings bank. These banks transacted
only neghborhood business and their
suspension of payment was absolutely
without significance and bearing on
the general situation.
State Bank Examiner Judson. how.
ever, declared this afternoon that all
three were solvent and that deposit-
ors would lose nothing. The second
episode was in run against the Lin
coin Trust company. The run against
this company was virtually through.
out the day, but the sums withdrawn
were not large. At the close OF the
day the company's officials announced
that they We're fully able to meet all
Obligations.
j. p. Morgan to the Rescue.
nv far the most notable. even dra-
matte. episode of the day was the
emptying OF millions of money into
tho Stock Exchange through a pool
7hed by j. p. Morgan and other
financiers in order 10 avert ruthless
selling out of stocks. held by brokers'.
which was threatened because of their
Inability to obtain renewals OF loans
on which there stocks had been carri.
ed. a remarkable condition brought
about this extreme stringency in mon
ey which had gradually forced the in
tcrest rate mp to IN almost unprecc-
dented figure. Certain large interests
of great financial resources had been
charging recently what was in effect.
If not legal. usurious rates On al call
leans. One institution that has been
engaged In this practice was itself n
member of the clearing hose and
was severely criticised by other bank.
ers for its action on the ground that
this added an unnecessary complied
ton and strain upon the money sit
uat,on. AS result of the criticism
this institution withdrew its support
ana declined 10 offer money on call on
the Stock Exchange The effect, of
TINS was To run the rate for money 10.
DAY up to 100 per cent and when that
h%urc was quoted an extremely sharp
dcciine resulted In the stock market
th.cn racine. ten per cent stock
selling down to por Notwithstanding
the nigh ratc for call money that
might have been Cbtatined The Ma.
tional City bank John d. Rockefeller.
personally and other prominent n,onic1
interests sent funds to the Stock E,x
change TO be let at the normal rates
of pcr cent These e1ims howavsr
We're not sufficient to meet the d,
mand and for time there was great
confusion and hurried calling of stocks.
on the Exchange AZ tha time tLot