The Chanute times. [volume] (Chanute, Kan.) 1897-1913, 1907-11-01
the FURRY OVER
There Is Every Indication That
Crisis in the Banking Stu
alton Has Passed.
The United States Treaeury Rocke'
Teller and Morgan Furnished
$6o,0o0,Oo0 to Check the Down
ward Stock Market.

New York, Oct 2j.-As a result OF
Thursdays developments in the imam
cial world there is every indication
that the crisis in the banking and
trust company situation has been safe
" passed. The Trust Corlpany OF
America all through the days banking
hours paid out money to depositors as
rapidly as possible and closed Thurs
day with all demands having been
met.
A very favorable feature Of the stu
alton respecting this company was
that it was able to make its payments
with very little assistance and another
was that the company received over
its counters in the morning hours in
ordinary deposits more than $l,000u00'
The day was marked BY these 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
bank. These banks transacted only
a neighborhood businecs and their
suspension Of payment was absolutely
without significance rs bearing on the
general situation. State Bank Exam
iner Judson declared Thursday after
noon that all three were solvent and
that their Gepositors would lose moth
ing.
The second episode was run
q, I
company.
At the close Of the day the com
panyls officials announce! that they
were fully able to meet nj. obligations.
BY far the most noteahle, even dr@-
matte episode of the day was the
emptying of money into the stock OK
change through a pool headed by j. 20
Morgan and other financiers, in order
to avert a ruthless selling out of
stocks held by brokers which was
threatened because Of their inability
to obtain renewals of leans on which
these stocks had been carried.
A remarkable condition brought
about this extreme stringcncy. Ger
tain large interests Of great financial
| resources had been charging recently
what was in effect if not legally,
usurious rates of interest on call
loans One institution that had been
| engaged in this practice was itself
member of the clearing house and was
severely criticized by other bankers
| for its action ON the ground that THIS
added an unnecessary complication
| and strain ON the money situation
| AS = result of the criticism this insti-
| tuition withdrew its support and de-
| clined to offer money on call on the
| stock exchange. The effect of this
was to ran the rate for money up te
100 per cent and when that hyuTe
was quoted an extremely sharp de
cline resulted in the stock market
Union Pacific, a ten per cent stock
sold down to par.
| At the time that excitement was u
its height the announcement wa'
made that a pool had been formed
with J. p. Morgan at its head to CONF
tn the rescue OF the brokers for i
was necessary to provide funds a
once in order that they might carr.
stocks they were holding fer thei
| customers.
The effect of the relief measure wa
instaneous and the rate Of call none
dropped from 100 per cent to 10 pc
cent. When the stock eXchang
closed every one was getting all tn
money he wanted. The close wa
mareed by memorable scene /
] which the brokers gathered aroun
the. principal trading posts and CAV
three cheers for ]. Pierpont Morsa
and the members OF the pool whic
had saved the day.