The Richmond Virginian. (Richmond, Va.) 1910-1920, 1912-06-14
MEASUREMENT
s. MONEY SAVED THE
STOCK EXCHANGE
Morgan's Millions Dumped
Into Wall Street Came
From Treasury
FACTS BROUGHT OUT
IN INVESTIGATION
Hard-Earned Money of Amer
lean People Held Wall
Street Together in
/. Panic of 1907

NEW YORK, June ia startling
Light was thrown today on the reia-
lions that existed during the panic OF
1907 between the money trust and
the United States treasury.
1t was shown that more than forty
millions OF the public funds were
dumped by the secretary of the treas
ury into favored banks of New York
In an effort to stop the panic, and
that more than thirty seven millions
of this enormous sum was turned over
TO banks affiliated with Morgan In
terests and with Standard Oil inter
ests to save the stock exchange from
ruin.
The committee on banking and cur
rency of the house OF congress had
developed the day before at its In
yeS<igatton of the money trust mat
on October -, 1907, the day when
the stock exchange was in mad fren-
~ because 1t could get no money with
" tsss h -tty meet pressing obifsasi5
although as much as 125 was offered
for call money at one period in those
hours OF fierce excitement. X. IL.
change, had obtained promise from
J. P. Morgan of immediate relief 10
the extent of twenty-five millions.
From the tenor OF the testimony
brought out Wednesday ON This phase
az the snaject 1t had been maae TO
appear that MIR. Morgan had opened
his own vaults and released the goi-
den stream which brought surcease 10
the haif-crazed hordes OF the stock
exchange.
Morgan Held Keys.
Today's developments with anaz-
ing suddenness gave a widely DIFF
terenr aspect to the real situation.
They revealed that Mr.. Morgan Was
the only nnancier IN the United
States. except George b. Corteiyou.
then President Roosevelts secretary
OF the treasury and now president of
the Consolidated Gas company,
Standard Oil Morganized corporation.
who knew the combination of the
vaults OF the United States treasury.
Il Was he who distributed the vast
millions to stock exchange banks ar
ter Secretary Cortelyou had an
nounced tha; the government would
come to the relief of the situation ny
depositing with the banks named by
Mr.. Morgan SIS. 1000, 0oe, Mr.. Thomas
had testified the day before thar he
latter sum was the amount he had
represented to Mr.. Morgan as the
least with which the terrific strain on
the stock exchange could be relieved.
thereby saving hundreds of stock eS-
change firms from ruin, along with
thousands of their customers on oc-
soher Gath In the height OF the panic.
He told dramatically how. after two
minutes talk with Mr. Morgan. the
latter had instructed him TO return
Immediately to the stock exchange
that the required money would oe
forthcoming at once. This he did. and
the storm was stilled for the day,
Hear Real Truth.
But from the lips of Mr.. Cortelyou
and from the lips OF Carries Steele, one
-MeYgnf,,-- partners. the oon-
gressional committee today heard the
real truth about the source and
amount of money that saved the stock
exchange. That la, as much OF the
real. xxufh ahuair ,rfG 'fatEfs fsnAncsr-
ing OF that partous period as has
yet come out was revealed. Members
OF the committee said tonight after
adjournment that they had only barely
scratched the surface, and that when
they resumed their hearings in the
fall they expected TO make even yet
more amazing revelations
SO II appears from today's develop
ments that j. Pierpont Morgan was
not the saviour of the stock exchange
and of the whole OF Wall Street at
the most critical stage of the Reese
Welt panic OF 1907. II appears that
salvation was bought with more than
forty million dollars from the national
treasury--money that had been COL
lected from the American people in
tariff taxes, internal revenue duties
and other forms OF taxation supposed
upon them for the support of their
government at Washington 1t was
brought out by figures furnished by
the ub-treasurer In New York that
on October gath the sum OF fourteen
million dollars was transferred from
the vaults Of the sub-treasury. which
Is eaxctly opposite the Morgan bank
In Wall Street. to the small group of
banks designated by Mr.. Morgan,
II will be recalled in this connec-
ton that in his testimony r. II.
Thomas, after securing the pledge of
help from Mr.. Morgan. suggested that
the s25.000.000 be divided into lots"
and that according to MIR. Thomas Mr..
Morgan turned to George w. Perk-
ms. at that time one Of his partners
and said: Divide that money into
lots, Perkins"