The herald and news. [volume] (Newberry S.C.) 1903-1937, 1907-10-29

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RARLEM.
J. Fiecpent Morgan and Other Flnan-
ciers Give Aid-John .. Lends
Money at Normal Rate.

New York, Oct. 24.-As a result Of
to'ay's developments in the flnan'
ejal Il t!.cr2 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 days
banking hours paid out money to de:
positors as rapidly as possible, and
closed the day with all demands hav-
ing been met. A very favorable fea-
t1lre Of the situation respecting this
company was that it was able to make
its payments with very little assist
ance and another was that the COM
pany received over its counter IN the
morning hours in ordinary deposits
more than 100000 It was the gen.
eral impression in financial circles
that thit$ company havl:5 wi'hstood a
two days. run with little trouble was
undoubtedly in good CONDITION t. con-
tiaue its business and iii fact that
company and it's affairs were not con-
sidered as a factor any longer III The
general situation. As the Trus: Com
pany Of America had been the cen-
ter Of the recent financial storm it
was accorted that the ability it had
thus shown to weather the storm was
a clear indication that the financial
sky nad cleared and that a period OF
fair weather was now well in sight.
Three Noteworthy Episodes.
Tie 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
Harlem, the Hamilton bank, the
Twelfth Ward bank and the Empire
City Savings bank. These banks
transacted only neignborhood busi-
ness and their suspension of payment
was absolutely without significance
bearing on the general situation.
State Bank Examiner Judson, how
ever, declared this afternoon that all
three were solvent and that their de-
positors would lose nothing.
The second episode was a run inau-
g,rated against the Lincoln Trust
company. The run against this COM
pany was steady throughout the day,
but the sums withdrawn were not
large. At the close Of the y the
company's officials announced that
they were fully able to meet all obli-
cations.
Millions Emptied in Market.
By far the most notable, even dra-
matte, episode Of the day was the
emptying of millions Of money into
the stock exchange through pool
headed by J. P. Morgan and other
financiers in order to avert ruth
less selling out of stocks held by
brokers which was threatened because
of their inability to obtain renewals
of loans on which these stocks had
been carried. A remarkable oonG-
ton brought about this extreme
stringeney in money which had gra-
dually forced the rate up to an al
most unprecedented figure. Certain
large interest that great financial re-
sources had been charging recently
was in effect, if not legally, usurious
rates of interest on call loans. One
institution that had been engaged in
this practice was itself a member Of
the clearing house and was severely
criticized by o. Ner bankers for its
action on the E. >und that this added
an unnecessary complication and
strain to the money situation. AS a
result Of the criticism tais institution
withdrew it's support and declined to
offer money on call on the stock ex-
change. The effect of this was to
run the rate for money today up to
100 per cent. and when that figure
was quoted an extremely sharp de-
ion Pacific, a 10 per cent, stock, sell
cline resulted in the stock market, Nm
ing down to par.
John D. Helps Out.
Notwithstanding the high rate for
call money that might have been OBJ
taained the National City bank, John
D. Rockefeller personally and other
prominent monied interests sent
Il H. ctoal- oxohancro 70 he