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e MAINTAIN MARKET Call Money at 100 Per Cent. The effect of this was to run the rate for money up to 100 per cent, FINANCIER CHEEK and when that figure was quoted an extremely sharp decline in stocks resulted. Notwithstanding the high rate for call money that might have been obtained, the National City BY THE BRON bank, John D. Rockefeller personally and other prominent moneyed interests sent funds to the stock exchange to be lent at the normal rate of 6 per A POOL HEADED BY MORA cent. These sums, however, were POURS $25,000,000 ONTO not sufficient to meet the demand, and for a time there was great conTHE MARKET fusion and a hurried selling of stocks on the exchange. The Morgan pool brought money into the loan corner of the exchange, Call Money Was at 100 and Brokers where it was quickly distributed in such lots as would be most effective Were Selling Stocks Wild-To in rendering support. The effect of Save Situation Morgan and Others the relief measure was instantaneous, and the rate on call money Distributed $25,000,000 on Stock dropped from 100 to 10 per cent. Stocks advanced more rapidly than Exchange-Call Money Drops to they had declined. 10 and Stocks Leap Up-General A Hundred Million for Relief. Situation Clearer. Seldom, if ever, had the veterans of finance seen a great situation saved so quickly and effectively by such a Napoleonic stroke. The close New York, Oct. 25.-As a result of was marked by a memorable scene in yesterdays developments in the finanwhich the brokers gathered around cial world there is every indication the principal trading posts and gave that the crisis in banking and trust three cheers for J. Pierpont Morgan company situation has been safely and the members of the pool which passed. The Trust company of Amehad saved the day. The aggregate rica paid out money to depositors amount of money which had been as rapidly as possible and closed with contributed to weather the storm A all demands having been met. and restore confidence assumes truly favorable feature of the situation colossa) proportions. Roughly estirespecting this company was that it mated, it includes the $25,000,000 was able to make its payments with which Secretary Cortelyou deposited little assistance, and another was in New York banks, $25,000,000 that the company received over its which the Morgan pool brought to counters in the morning hours in the floor, $10,000,000 which John D. ordinary deposits more than $1,000, Rockefeller deposited with the Union 000. At the close of the day's busiTrust company as a means of stemness Mr. Oakleigh Thorne, president ming the tide of the Trust Company of the company, said there was abund of America, and finally another ant cash in the company's vaults to $50,000,000 which it is understood meet the situation and that he had Mr. Rockefeller stood ready to adno apprehension whatever regarding vance to meet any further stress of the institution. It was the general conditions-in all considerably in impression in financial circles that excess of $100,000,000. this company having withstood a two Run On Providence Bank. day run with so little trouble was undoubtedly in good condition to Providence, R. I., Oct. 25.-For continue its business. three hours yesterday a steady stream of depositors passed before the winAtmosphere Clears dow of the paying teller of the As the Trust Company of America Union Trust company of this city has been the center of the recent and withdrew the amounts they had financial storm, it was accepted that deposited in the institution. When the ability it has thus shown to the bank closed its doors for busiweather the storm was a clear indicaness at 3 o'clock there were between tion that the financial sky had clear100 and 150 depositors waiting in ed and that a period of fair weather line. Officials of the trust company was now well in sight. The day seemed to manifest no uneasiness at was marked by three noteworthy the situation, and when the bank episodes. First and earliest in the was closed Vice President and Secreday came the announcement of troutary Michael Dooley told the depositble in three minor state banks in ors that payments would be resumed Harlem-the Harlem bank, the today. Twelfth Ward bank and the Empire Last Night's Events. City Savings bank. These banks transacted only neighborhood busiNew York, Oct. 5.-The developness, and their suspension of payments of last evening, during which, as was the case Wednesday night, ment was absolutely without signifithere were several conferences, incance bearing on the general situation. The Empire City Savings bank cluding an issuance by State Comptroller Martin H. Glynn of a statewas controlled by Tammany Hall ment on the local financial situapoliticians, and its business operations were confined to a small area. tion and the announcement of plans Although these banks were oblifor the rehabilitation of the susgated to close because of a lack of pended Knickerbocker Trust comready cash, State Bank Examiner pany. The tentative plans for the Judson declared yesterday afternoon Knickerbocker, as outlined by one of that all three were solvent and that the officials following a meeting of the board of directors late yesterday, their depositors would lose nothing The second episode was the run provides for the formation among inaugurated against the Lincoln the directorate of a pool of some Trust company. The run against $5,000,000 to guarantee the rethis company was steady throughout demption within two years of interthe day, but the sums withdrawn est-bearing certificates, which will were not large. be offered in settlement of the accounts of the company, which canMorgan Gives Millions. not be liquidated at the present By far the most notable, even dratime. matic, episode of the day was the Pittsburg Situation. emptying of $25,000,000 into the stock exchange through a pool headPittsburg, Pa., Oct. 25.-Late yesed by J. P. Morgan and other finanterday Walter D. Updegraff, secreciers in order to avert a ruthless tary to George Westinghouse, was selling out of stocks held by brokers. appointed receiver for the Nernst A remarkable condition brought Lamp company, the fourth Westingabout this extreme stringency of house concern embarrassed by the money, which had gradually forced money market stringency. The apthe interest rate up to an almost pointment of receivers for the four unprecedented figure. One instituWestinghouse companies places them tion that engaged in this practice on a better footing. was itself a member of the clearing The failure of the Iron City Trust and effects house and was severely criticised
