The Richmond Virginian. (Richmond, Va.) 1910-1920, 1911-01-09
MORGAN At HELM;
SITUATION CLEARS
Great Captain of Finance Re-
stores Calm to Financial
-=W World
BANK RUNS IN NEW
YORK HEADED OFF
Unlimited Supply of Cas- h
Furnished Institutions Jeo-
pardized by Carnegie
Trust Failure

NEW YORK, Jan. 81. p. Nor
gan is still the uudisputed master
of New York finance.
This was shown to- day when every
cloud IN the financial horizon was
disspated by the simple announce
naent that he had guaranteed tho
deposits OF number Of local banks
which were under pressure as the
result of the closing Of the Carne
sic Trust Company on Saturday.
There was a slight run or the
Nineteenth and Twelfth Ward
Banks, but only tho foreign eie-
nent withdraw its cash, and there
were sufficient outside deposits to
offset the amount paid out. The
Madison Trust Company, taken
over by Morean's Equitable Trust
Company had only a few with
drawals.
BY Moegan's order all Of the In
stitutions for whose future there
was any concern piled up gold,
silver ard bills in enormous guam
titles on their counters. The re-
suit was that tirnid depositors came
in, took one look, and then lett
satisfied that their money was in
J0oo fI@NQ6. TIC SkcSR fHaFScts zoos
felt the effect OF the Morgan Tex
preston OF confidence" and Satur-
days weakness was replaced by
strong tone.
Morgan 10 going to Europe on
Wednesday for his annual winter
vacation, and this fact was urged
by the bulls as a reason for the be-
lief that the financial furry was at
an end.
The old man would not go away
IL everything was not all right,
was the word paassed along the
line, ard it had it's effect.
All of the officials of tho insti-
tutions affected by last niaht'a long
series OF conferences between Nor
gan and the BIG financiers Of the
street and State superintendent of
Banks Cheney issued statements
this afternoon that no further trou-
bic was to be feared.
NEW YORK. Jan. 9.-IFhat the al
led banking institutions of the coun-
ry are prepared to prevent any dis
urbance of present conditions Was
made plain to-day by the presencs
n the clearing house of a number OF
he leading captains of finance. They
we're on hand to take care of any
-uns that might develop in any New
York city bank, and had available al
most unlimited cash to meet demands.
the night officials of the big
banks were on duty, and when the
business day opened there was an ex-
libition OF immediate resources in es-
Try institution which might have un-
Usual demands made upon, such as
has not been displayed since the
yiOomY DAYS of 1907.
There is nothing the matter with
he business world, and the public
must be made to understand Ii AZ
,nce. is the word that came from r.
P. Morgan and the command of tho
king was literally obeyed.
Morgan Clarified Situation.
Over night Morgan had clarified the
situation. BY his order the Madison
Trust Company. formerly the Van
Trust Company, was taken
over by the Equitable Trust Company.
This is a s35.0o0.000 concern, backed
oy the Equitable Insurance Company.
IF which Morgan is new controlling
owner Morgan also personally as
sumed responsibility for all of the obs
igations.- the Nineteenth ward and
the Twelfsh ward banks and their
branches ana II was by his direction
hat securities held by these two con-
,erns, which wer@ not of sort which
could be sold readily In the open mar.
Set were replaced by actual cash.
Not since 1897, when Morgan, af-4
Ter talking with President Roosevelt
over the telephone and personally
with Secretary of the
Treasury Cortelyou. calmeas the finan-
etai storm, has the Morgan tnftu-
snce been so openly displayed. as II
vas to-day.
All Stand Together.
Morgan & Co, Kuhn. Loeb & So,
the Guggenheims. Standard OH. han-
y Phipps, Halgarten g. Co, and ev-.
Try big bank allied with the New York;
clearing house stand together.
The string of Southern asid- WeSf-
srn banks affected through the clos.
ing on Saturday Of the Carnegie
Company are also TO be taken care Of
so that there will he no financial dis
turb ance in those sections. All OK
their outstanding drafts will be CASH
I'D by coterie of banks hero while
their paper will be discounted to pro-
vide them with such cash as they
may need pending the clearing up az
the Carnegie Trusts affairs
The cash which was sent our from
this city to move the crops in the
West and South has started on its
way back through the needs of tho
spring trade. 1t was agreed that any
.rouble in New York banking circles
would keep this money in the local
which in the nature course
of business would transfer II back
20 this city. This was potent reason
in getting all Of the big bankers here
INTO line for the policy OF support
hat safeguarded the New York banks
to- day.
The Madison Trust Company early
TO- day elected new officers having
named as president and vice. rcsi-
dent respectively. Alvin W. Krech and
Lawrence l.. Gillespie, who are also
president and vice. president OF the
Trust Company. RepresAa@
tative business men were also put int
the active management Of the Nine
.eenth and Twelfth Ward banks No.
though bradley Martin. Jr.. continues
rs president OF the Nineteenth. Inc
men who were directors In these -
rs well as in the CarnoefG
Trust Company all retired from xk63
boards % matter Of policy 10 ~.
assure the public.
Statements BY Morgan ana Cc1
pany President Krach. ~
Sconlinas1 8 5e1sfH - y $780,