Omaha daily bee., 1907-10-25
twenty-five Million Dollars Avail
able for Call Loans
RATE DROPS TO TEN PER CENT
It Had Risen to 100 Per Cent and
Market Was Quaking,
RELIEF IS QUICKLY FELT
Prices which Had Began To Tumble
AdvRnced-Three Smaller Up
town Banks suspend
Payments,

NEW YORK, oct. A-As a result Of to-
days development in the financial world
there is every indication that the crisis
in the banking and trust company sltua-
tion has been safely passed. The Trust
Company OF America ell through the days
banking hours paid out money to deposi
tors as rapidly as possible and closed to-
day with all demands having been met. 4
very favorable feature OF the situation re-
spectlng this company was that It was
able to make It's payments with very little
assistance. and another was that the COM
pany received over it's counters in the
morning hours in ordinary deposits more
than S1.OOOOOO
The day was marked by these note
worthy episodes. First and earliest in the
day cane the announcement OF trouble In
three minor state banks in Harlem--the
Hamilton Park, the Twelfth Ward bank
and the Empire City Savings bank. These
banks transacted only neiRhborhood bus-
ness and their suspension OF payment was
absolutely without significance as bearing
on the general situation. State Bank Ex-
aminer Judson declared this afternoon that
all three were solvent and that their de-
positors would lose nothing.
The second episode was run inaugurated
against the Lincoln Trust company At
the close Of the day the company's ofaciais
announced that they were fully able to
meet all obligations
So far the most notable. even drastic
episode OF the day was the emptying OF
millions Of money into the Stock exchange
through a pool headed by ]. p. Morgan
and other fnancers in order to avert a
ruthless selling out OF stocks held by
brokers. which was threatened because OF
their inability to- obtain renewals on loans.
A remarkable condition brought about
this extreme stringency. Certain large in
terests of great financial resources had
been charging recently what was in ef-
feet IL not legally usurious rates of in
terest on call loans One institution that
had been engaged in this proctice was itself
a member Of the clearing house and was
severely criticised by other bankers for
Z its action on the ground that this added
an unnecessary complication and strain on
the money situation. AS a result OF the
criticism this institution withdrew It's sup
port and declined to offer money on call
on the Stock exchange. The effect Of this
was to send tthe rate for monew to 100
per cent and. when that figure was quoted
an extremely sharp decline resulted in the
stock market. Union Pacific. 10 per cent
stock sold down to par. At the time that
excitement was at It's height the annaunce-
ment was made that a pool had been
formed with ]. p. Morgan at its hetd
to come to the rescue of the brokers for
1t was necessary to provide funds at onca
in order that they might carry stocks they
were holding for their customers.
The effect OF the relief measure was in
stantaneous and the rate on call money
dropped from 100 per cent TO 10 per cent
When the Stock exchange closed everyone
was getting all the money he wanted The
; close was marked by a memorable scene
in which the brokers gathered around the
q principal trading posts and gave three
! cheers for J, P. Morgan.
The amount OF money which had been
' contributed to stem the storm was truly
. colossal in proportions. Roughly estimated
1t includes $25,0OO,OOO which Secretary Cor.
, telyou deposited in the New York banI/
: $25 100000 which the Morgan pool br/ 1T
{ to the floor; SlOOOOO0O which John d.
Rockefeller deposited with the Union Trust
y company, and finally another $4,000. 900
= which, It is understood, Mr.. Rockefeller
y stood ready to meet-in all considerable in
I excess of $lOO.OOO.OOO.
n Over Might Developments.
All the over night Developments in the
o financial situation were reassurinE. All tho
conferences last night participated n by
y Secretary Cortelyou. ]. p. Morgan, James
3 stillman and other representative bankers
: and men OF affairs, disclosed an agreement
In the opinion that the banking situation is
, we'll in hand and that with the government
= deposits to be made by Secretary Cortel-
you today there will not only be enough
cash on hand, but even more than might be
: needed safely in sny emergency
! Many conferences were held Throughout
a NJ haD a.
I! continuing up TO l o'clock in the morning.
: at which time Secretary Cortelyou gave out
! the following statement;
have said to the gentlemen who called
3 upon me today that any statement to the
J. should be made with the utmost frankness.
so depositors and others Interested IN banks
e might realize that entire reliance could be
facts have known that the situation was
- made serious largely because OF the cir
reasoning anxiety OF many who thought
only for the moment To pass safely
most Unnecessary excitement as II has been.
Is the best evidence of strength and sup
port on the part OF those who have under
& public confidence. wherever there Is weak
q ness, and II has existed in a comparatively
few instances Strong and able men are
4, rendering aid, and In behalf Of the Treas
" ury department, l may say that believe
) the largest way whatever is Necessary 10
relieve the situation. II the city will con,
itinue its efforts at cooperation, ana n the
public will do It's part there will be a
prompt return OF the confidence which their
condition warrants Aa evidence OF the
- treasurys position / have directed deposits
in this city TO the extent OF SIS. OO0,0Oo
t. Ran ON Trust Company Continues.
ID The run on the Trust Company Of Amer
lea was continued this morning As early
as o'clock a little knot OF persons had
n gathered in front OF the company's main
banking house In Wall street. and by
rs o'clock their number had been augmented
until about $50 were IN line. AZ the com
pany's branch at Broadway and Ann street
formerly the Colonial Trust company. there
re we're fifty or seventy-hye persons In line
IN at o'clock. The shaky conditions Il Wa'
"a evident had been greatly minimiEed by thu