New-York tribune., 1907-10-24
C0RTELYOU ENDS CRISIS
WW Place $25,OOO,OOO of GoUern-
ment Money in Banks To-dag.


The crisis In New York financial circles was
safely passed lGsy night. After prolonged con-
ferences at J. P. Morgan's Office an organization
of the presidents of the New York trust COM
panies was effected. not different In principle
from the Clearing House Association 1t was in
the nature of a protective combination. All OF
the leading and admittedly conservative trust
companies participated John a. Stewart chair
man Of the board Of the United States Trust
Company. presided. and was elected chairman
of a committee whose duties are to be analogous
to those OF the Clearing House committee. 4
resolution was unanimously adopted providing
for examination OF the various trust COM
panies and report of the findings. with recon-
mendations. 10 the association.
Following this organization. which was re-
garded as one of the most important ADJUST
ments ever successfully carried through In the
financial history of this city. report was made
to the committee last night respecting the in
vestigation into the affairs of the Trust Com
pany OF America. This report was carefully
considered in a prolonged conference Of the
company had ample securities to warrant con-
tinued advances being made to it AS a re-
suit the committee representing all OF the trust
companies of New York unanimously agreed TO
come 10 the aid of the Trust Company of Amer
ica bv providing such funds as it needs. There
is no reason TO doubt therefore. tha: the Trust
Company OF America will be able to meet all
demands made upon it.
AT the same time, and even more important.
the Secretary of the Treasury. having satisfied
himself as to the condition OF the New York
banks. authorized an announcement that he had
directed that government deposits be placed in
the banks Of the city to the extent OF S25.OOO.
600 to-day These two measures are admittedly
adequate for all the needs os the banking and
trust corporations of Rev York in the present
emergency.
Secretary Cortelyou's official statement is as
follows
have said 10 a number OF gentlemen who
called on me to-day that any statement to the
public regarding conditions here should be made
with the utmost frankness. that deposltors and
others interested in banks might realize thar
entire reliance might be placed upon IT. Those
familiar with the facts have known that the
situation was made serious larSely because or
the circulation Of unfounded rtmors, ana the
unreasonable anxiety of many who thought only
To mass safely through such a day as this.
one of most unnecessary excitement as II has
been is the best evidence of strength and sup
port on the part of those who have undertaken
the difficult task OF re-establish1ng public con-
fidence Wherever there is weakness. and u
has been in only few instances. strong and
able men are rendering AID; ana IN oenan OF
the Treasury Department, l may say that 1
believe it my duty to do. and shall do, in the
largest Way possible, whatever may be neCes-
sary to afford relief If the press Of the city
on its part. will reflect upon the real strength
of our banking institutions. there will be
condition warrants As evidence of the Treas
rrys position. ] have directed deposits IN this
city to the extent of $25,OOO,OOO
Secretary Cortelyou. following the issuance
of the foregoing statement. said that only the
best collateral would be accepted for the money
deposited. 1t is the secretary's intention to
remain here for several days. and he will
transact the business of the Treasury Depart
rnent at the Sub-Treasury. Mr.. CortelyOu said
that the national banks were in a very strong
position and that this morning wednesday,
many of them had on hand double the amount
of their legal reserves
Speaking of the Treasury funds which. at his
direction, were placed in the banks OF Pittsburg
yesterday, the Secretary said that he had helped
the situation in that city He took this action.
he said. in order TO meet the further demands
which would be made upon the Pittsburg banks
on Saturday when the army of wOrSmen en-
ployed in and about that city would be paid OFT.
Late in the evening it became known that John
d. Rockefeller taking an active interest in
the present financial situation and had arranged
to loan very large sums to a number of New
York financial institutions. In an interview. Mr..
Rockefeller said:
Il think that the existing alarm among in
vestors is not warranted. and hope the good
common sense of our American people viii con-
troll the situation.
Personally. 1 have absolute faith in the
future Of the values of our securities and th-