Evening star., 1914-12-29
A run WAS started, and -throngs Of pso-
pie besiesed the company's main omes
flH:oT'

a run WAS started, and throngs OF peo-
pie besieged the company's main once
and branches, clamoring for their
money. The Withdrawals Of money
were on a scale which convinced the
management of the company that IL
would be impossible fer 1t to realise on
It's assets fast enough to meet the de-
mauds of depositors, and its directors
endeavored to expedite the negotiations
which they had. within the few days,
entered into with other local hnaflciai
Institutions, and to inauEurate others,
bank or trust company sufficiently
strong and willing to guarantee and
take over the deposits and: business OF
the United States Trust Company, 30
as to avert the threatened collapse
There was reason to fear that u the
United States Trust Company with its
flve branches, should close Its doors.
runs would be precipitated on other
banks and trust companies IN the DIS
trict. and that succession Of bank
failures or suspensions would be pre-
cipitated.
at that time were nervous and more OF
less strained, and there was serious
Iapprehension that such a disturbance
as threatened in Washington might
spread to other -cities, with disastrous
consequences.
Aid Through National Banks.
THE Treasury Department. upon be-
ing appealed to for assistance. made 1t
known. without favor or discrimina-
ton, to the several institutions with
which the management of the United
States Trust Company was negotiating.
that, in order to help out, the govern
ment as it could not under the law
deposit directly with a trust company,
would be willing to deposit 100000
in the national banks Of Washington,
upon proper security, In order that
these banks might advance TINS sum,
upon satisfactory security, to such
bank or trust company as might be
able and willing to take over the busi-
ness and guarantee the deposits OF the
United States Trust Company, and thus
prevent the failure or failures Whlch
were impending.
about ten days later, December 3,
1913, a New York newspaper hostile to
the administration made an attack
upon the Treasury Department ana lts
ment had taken-and which had been
strictly within the lawn its effort to
avert the disaster which, had 1t not
been prevented. would surely have
more than $4,000 depositors of the
United States Trust Co, as well as to
other local interests, and which would
probably have been far reaching In its
evil results.
Local Bank Is Blamed.
Information which reached the de-
partment indicated that this news
paper attack had been instigated and
promoted by individuals connected
with a local national bank which was
AFFILIATED with a banking interest IN
New York city, also hostile to the
tpresent administration, and which in
| terest. under previous administrations,
| had enjoyed special favors and priv
| ileges from the government, partIcu-
larIy in connection with the treasury
| Department, as existing records
| abundant1y show.
"The 81 900, 900 deposited by the gov
ernment with the national banks In
washington. and by them deposited
with the Munsey Trust Company to
assist in averting the bank failures,
with interest at the rate of per cent
per annum, onsz half being repaid by
February 6, 1914, and the entire bal
ance by April 3, 1914.
Something for Stockholders.
.The Munsey Trust Company. with
1.-THE cooperation of the officers Of the
United States Trust Company, convert
ed into money during the ensuing
months a sufficient amount Of the assets
of the latter company to reimburse the
Munsey Trust Company for all moneys
which 1t advanced to the United States
Trust Company and its depositors: the
remaining assets of the United States
Trust Company were conserved, and,
latter paytng all claims, dollar for dol.