New-York tribune., 1908-01-02

operations of individuals identifed with certain
INSTITUTIONS induced withdrawals from others.
The third week in October notably time of
with the result that the resources of financial in
Sututions Were strained-in some cases to the
During the fourth week in October the following
hanks and trust companies. under the supervision
OF TINS department, closed their doors:
Knickerbocker Trust Company.
Hamilton Bank of New york CITY. oeto6eT oeoSeT =
Twelfth Ward Bank of The CITY Of
United States 4 -hange E4 K. New 0''''e'
ne59ash 9Sgs fsat ara,.a osoSsF ostSSsF 81
The BrGoklyn Bank the clty OF
International trust company New o''''e'
Jenkins Trust company Brooklyn. 0etober 5S )
Williamsburg Trust Company. Brook
Terminal Bank. Brooklyn. ....... october IS -
These institutions including their branches had
amounted to 100000 and their book surplus to
al, about o 100000 Their deposits aggregated ss2
SUSPENDED INSTITUTIONS SOLVENT
Most of these banks and trust companies were
undoubtedly solvent under the test of ordinary de-
soclatlons or by transactions of questionable char
ditions prevalent the time. and one. least, Of
was voluntary. the department taking possession
promptly on request of the officers in charge, and
@ m the fact to the Attorney General as
Realizing the possibilities of the situation the
ernor authority to appoint tw'enty emergency ex
quest was communicated to the Civil Service Com
MISSION and favorable answer returned But
necessary employ not only these examiners but
additional helpers The Superintendent found it
necessary to take action for which there no
precedent in the department nor definite provision
On October 25 the presidents of savings banks de-
teTnined 10 require from their depositors notice OF
Demands of unprecedented persistence were ex-
perienced by other institutions which, because of
TaE md of sid Sfa
able to meet these demands and survive the strain.
largest EXTENT for the reIief Of the sittion C If
became necessary TO deal firmly with certain condi-
the conduct of the business of the institutions
porarily embarrassed and of the efforts made for
ency seemed be shown by the department it
The crisis demonstrated the value and necessity
Of cooperation among financial institutions. Its
at large which bore with commendabe patience
caused by the restriction in cash payments
VALUE OF CONCERTED ACTION.
The concerted action Of the associated banks. the
combined with praseworthy assistance from the
press. unquestonaby obyiated in a number of cases
waste of assets which forced liquidation would
Through the judicious use Of vast resources.
spirit, the excitement was finally alayed.
moderately affected by the crisis in the metropolis
EGn the oed to ee and m R p%R with
eqUanimity. and while there were manifestations
limits The pressure for cash rendered it neces-
sary to utilize. cashiers checks and other make
tended sale. ~ ''-'' '"' '' 0'i Oh eA
The suspensions referred TO heretofore were be-
Iieved in most cases to be simply temporary ex-
pedient, and the expectation of early assumptions
sstent with the obligations of official duty
forded those interested TO arrange for the rehab,
the KnickerbOcker Trust Company. no proceedings
taken until three weeks after its suspension.
unless its officers and directors, after due not-
f Gs o the eSs haf
h sR apDone 20 p ceran
Dete Of
Institution Of recevers
KnicSerfocier Comnany York. October 81
Hamilton Bank Of New York city. November 20
TIE BrookiSn Bank in the city Of New York Novenr 30
anFns % ron5 ropsn9 ofT 20
Williamsburg Trust Company Brook" " November 20
RESUMPTIONS.
Certain banks having shown a condition seeming
10 this department warrant continuance of
business were authorized. with the approval OF the
Attorney General. to resume. TO wit:
Twelfth the City of New York November 90 1907 1907
United States Exchange New November . 1897
In determining whether the resumption of bust
ness would be warranted the character Of marage-
given due consideration.
The money stringency reflected in premium,
ope~ating 10 restore boarded currency to use.
largely contributed TO the difficulty of the resump,
tion by certain of the suspended institutions. and
may have prevented resumption by others.
of trust. carrying with them they did the fatal
cost of loss Of public confidence. rendered resump-
ton impossible.
STRENGTH OF STATE BANKS.
The impression has found current expression in
some quarters that the recent disturbance was due
inherent weakness In the moneyed c9Ipofations
of the a review of the history of its imam
cial Institutions however, compels the conclusion
that this weakness does not exist.
During the two decades preceding last october
hanks two failures of trust companies. and only
one of savings banks This record compares most
The result of the impression referred to has been
apparent in suggested legislation for the correction
of evils which do not exist legislation which may
be appropriately termed panic legislation 1T is not
nn m financial institution in this country could have
withstood the persistent demands of panic strck-
en- body of depositors such as were made upon
certain Of the institutions during the recent
trouble. At the same time it must be frankly ad-
iustidcation in the corditon of of the failed
these conditions were due directly TO corporate
abuse and the absence Of sufficient authority the
part of the Superintendent of Banks TO correct
II is true that ne may address his communea-
his method of correction the practical limit TO
which he may until conditions have reached
such point as to REQUIRE his taking possession OF
tir oa rtiruiar causes Contributing largely to the
failure of our state institutions were: lack of
proper supervisory power. too great interdepen-
dence between corporations lack of association
for mutual assistance. and corporate abuse
The forms Of corporate abuse principally con-
tributing to these failures were a general disre-
inattention to and disregard of duties OF directors
and improper use of corporate credit for personal
advantage.
SUPERINTENDENT AUTHORITY.
Among the causes contributing to the suspension
of the closed institutions was aGk o. supervisory
eases the department has called attention 10 prae-
ees which w1re da IL 10 the s
OF Banks had had the authority to enforce dis