The semi-weekly messenger., 1907-10-25

IAO OuL DosOuo,Ooo ]" IdSA LII
Three Hours
New York, October 23.-Secretary
of the Treasury George B. Cortelyou
made the following statement shortly
before l o'clock this morning:
Il repeat what l stated before leav-
ing Washington this afternoon If nc
other reason than to emphasize 1t.
The treasury department will use its
facilities to assist in every proper way
legitimate business interests, and its
action will be prompt and thorough
''The national banks of New York
city are in an exceptionally strong
condition. The general situation here
seems to be we'll in hand, and is being
looked after by many strong and inf1u-
entail men, such as those whose re-
cent action in the clearing house re-
ceived emphatic public approval. The
movement for similar concert of Ic-
ton among the trust companies should
have helpful and far reaching effect
I shall spend the day tomorrow at the
Sub-treaSury.
This statement was made following
a conference on the local banking Sill
uation held at the Hotel Manhattan
between Secretary COrtelyou, j. ?.
Morgan, George f. Baker, Frank A.
Vanderlip, James Stillman and J. c.
Cannon. Subsequently it was learned
that the position of the knickerbocker
Trust Company was regarded by those
at the conference as hopelessly IN
solvent and that no aid was to be ex-
tended to that institution. 1t was also
learned that the Trust Company Of
America had applied for and had
been granted liberal assistance. The
bankers further decided to extend ad-
ditional aid to the Trust Company OF
America should this be required
1t was the opinion Of the bankers
at the conference that the general
banking situation not only so far rs
it concerned the banks, but the trust
companies, as we'll, has been very
much strengthened and no further
trouble is apprehended.
New York, October 22.-Credit un-
der-the-surface, the foundation of all
business, trembled for a time today,
and before confidence could be re-
stored the KnickerbOcker Trust COM
panY, New York's second largest
financial institution had emptied it's
cash vaults under pressure of the big
geSt run experienced here in a gem
GRAFTON; a stock exchange firm had
failed for $6,0OO,OOO; Wall streets
principal securities had settled from
$5 to $S share, money had risen to
20 per cent, and local bankers,
unable to stem the tide OF distrust,.
had been forced to appeal for relief
to the secretary of the treasury at
Washington.
All this was in the face of reassur-
ing statements by the acting state su-
perintendent Of banks that the sus-
pected bank was solvent; declarations
by prominent bankers that there was
no true basis for alarm, and assur-
:anceS from Washington that Secretary
CortefyOu would not hesitate to act
promptly in any situation where legi-
innate business was threatened. Now
that the first scare is over and the
worst of the future discounted, it is
believed that local banking affairs will
soon readjust themselves
Secretary of the Treasury George
3. CortelyOu reached New York from
Washington. at $50 o'clock tonight.
He was met at Jersey City by Hamil-
ton FISH, assistant Inlleu STATES TREAS
urer, and the two were in earnest con-
versatiOn during the ferry trip to New
York.
Upon reaching this city they went
at once to the hotel Manhattan where
several bankers later presented to the
secretary the various phases of local
financial conditions.
Secretary COrtelyOu is here to thor
oughly look into the financial situa-
ton. which he has had under obser-
walton fer several weeks. He has
come with no preconceiNed ideas or
how much money will be required TO
relieve the situation and the matter
of treasury relief measures will be de-
ternined by what he learns tonight.
He wiIl DO all he can to relieve the
present stress. 1t is expected that
statement will be given out by the sec
retary about midnight.
Before leaving Washington late to-
night, Secretary Correlyou decided
that $6.000.000 be deposited with New
York banks as soon as the necessary
collateral had been furnished, and at
the same time, he, issued this state
ment: .., -
The secretary of the treasury is
keeping in close touch with the busi-
ness conditions throughout the coun-
try. In the matter of public deposits
he will at all times consul the
needs OF legitimate business interests,
and will not hesitate to deal prompt
ly and adequately with any situation
that may arise.
Mr. Cortelyou's statement when re-
ceived here did much to put better
face on things, and it was predicted
that the secretarys visit would result
in further deposits here of $15,OOO,-
900.
The Knickerbocker Trust company,
the storm centre today, paid out cash
to depositors at the rate of $44.444
for three hours TO-DAY ana
then closed its doors. The dlrectors