16310. National City Bank (New York, NY)

Bank Information

Episode Type: Run Only
Bank Type: national
Bank ID: 1461
Charter Number: 1461
Start Date: October 24, 1907
Location: New York, New York (40.714, -74.006)

Metadata

Model: gpt-5-mini
Short Digest: 263a43f9

Response Measures

Accommodated withdrawals, Borrowed from banks or large institutions, Public signal of financial health, Capital injected

Other: National City Bank acted as a source of liquidity (deposits, gold importation, loans) and distributed cash to stem runs; also aided by Morgan/Stillman coordinated loans.

Description

Articles describe National City Bank's role during the Panic of 1907: heavy withdrawals/runs around Oct 23-24, 1907, but the bank met demands (deposits, gold purchases) and business resumed; there was no suspension of the bank reported here. Classified as a run that did not lead to suspension.

Events (2)

1. October 24, 1907 Run

Cause: Macro News
Cause Details: General financial panic of October 1907 (market turmoil, stock exchange closing, very high call money rates) triggered heavy withdrawals from banks including National City Bank.
Measures: Engaged/imported gold; deposited and distributed funds through trust companies and clearing house channels; made large purchases of gold for importation; paid out cash and certified checks to meet demands.
Newspaper Excerpt: Hundreds of depositors were gathered at the vaults ... the National City bank belongs to Rockefeller. ... The National City bank is reported to have deposited $8,000,000 with the North American Trust company
Source: newspapers

2. October 28, 1907 Other

Newspaper Excerpt: Late this afternoon the National City bank announced that it had engaged $1,250,000 in gold for importation in addition to its $6,000,000 already announced ... the few depositors that came to the company's offices on Ann street today were quickly paid off and business resumed its normal routine.
Source: newspapers

Newspaper Articles (16)

1. October 23, 1907 The Spokane Press Spokane, WA

Article from The Spokane Press, October 23, 1907

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BLOCK BIG PANIC Government and Private Interests Finally Stem Wall St. Tide. NEW YORK, Oct. 23.drawing deposits, the Allied Trust The action of Cortelyou Co. has agreed to advance $15,000,000 to the Trust Co. of North in depositing government America. This, with $11,000,000 funds in banks, heavy buyalready on hand, will be ample to ing by Morgan and the closprotect the company from any raid. ing of the Pittsburg exSlight runs on all banks mentionchange is believed to have ed as in trouble have been added averted a tremendous panic. features of New York's wildest fiThe worst is now over. nancial day. The action of the National City NEW YORK, Oct. 23.-Hundreds bank in offering millions in its of depositors were gathered at the vaults to hard pressed investors at 6 per cent when money was at 90 doors of the Knickerbocker Trust per cent on the board had a great Co. this morning hours before the effect in steadying the market. usual time of opening, but they With money easy, relief was felt were doomed to disappointment, as at once and the market closed It was officially announced that the firm but irregular. The National Knickerbocker would not resume City bank belongs to Rockefeller. business, the state banking departPITTSBURG, Oct. 23-The Westment having taken charge. inghouse Electric Co. is seriously Some depositors were demonstra. involved, but it is thought to be tive and police reserves were callsolvent. The following statement ed to keep peace. was issued today by Pres. Hall of Cortelyou is preparing to unload the Pittsburg stock exchange: currency to clearing house banks. "The Security Investment Co. The situation is regarded as very finds it is involved. This necessigrave and a determined effort will tates a temporary suspension or rebe made to choke off runs and restore shattered confidence. ceivership for the Westinghouse Electric Co., the Westinghouse MaPresident Thorne, of the Trust chine Co. and the Nernst Lamp Co., Co. of North America, says the all of which are solvent." bank can meet all demands, having The stock exchange did not open $11,000,000 in all. With thousands this morning on request of the clearing house. No explanation is HELENA MEN given. RENO, Oct. 23.-The State Bank & Trust Co., of Carson City, with ARE STILL OUT branches in Goldfield, Manhattan and Tonapah, temporarily suspendSpokane telegraphers received ed today. Bank officials state there word today over the railroad wires are sufficient undivided profits to that the report of 10 operators gopay dollar for dollar. ing to work at Helena, published NEW YORK, Oct. 23.-Justice this morning, is absolutely false. Holt, of the U. S. district court, The Montana boys are reported to has appointed Ed G. Benedict rebe sticking as tight as those elseceiver for Mayor & Co., who failwhere. ed yesterday. Liabilities $6,000,000. A new president of the union is

2. October 23, 1907 The Seattle Star Seattle, WA

Article from The Seattle Star, October 23, 1907

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Financier Is Working With the Secretary of the Treasury in Effort to Tide Over Present Flurry in Financial Circles. debit balances this morning and (By United Press.) that the clearing house committee had authorized the taking over of NEW YORK. Oct. gathered 23.-Hundreds around these balances if necessary. Call money was quoted this morning at 90. tranches $ depositors of were the the main Knickerbocker office hours and The officials of the Fifth Avenue company this morning. for opening, Trust company held a meeting this afternoon. There were heavy withdrawals from this concern this before Trust just they the were usual it doomed time was officially would to not disap- an- be morning, but there was plenty of nomeed business The state cash on hand to meet all demands. resumed this morning. taken department has Morgan in Control. banking of the bank. Some of the J. Pierpont Morgan is in personal control in the "street," and is wielding his tremendous financial power 1 ed out to state bankto prevent further disasters. The officials of the Rumors are in circulation to the department and conference the attorney this effect that arrests and criminal general Ing wear into a of seeking prosecutions of certain bankers morning on the question will be one result of the panic. a receiver. The National City bank is reportFinanciers at Work. ed to have deposited $8,000,000 I. Pierpont Morgan and other fl. with the North American Trust sanciers were at their offices as company, and that It is assisting big early as seven o'clock this mornbrokerage firms. If taking steps to prevent a panie. It is admitted that a great panic À - of large proportions started on the Stock Exchange has been the office of the Trust Company averted by the action of Secretary # of America when the doors opened of the Treasury Cortelyou, J. P. - morning, followed closely by Morgan and the Standard Oil com- on its branches. pany, all of whom are said to have Secretary of the Treasurer Corcome to the relief of shaky finanblood was at the sub treasury cial concerns. early. ready to unload money to The action of the Pittsburg Exare the clearing house banks. It change In remaining closed today generally admitted that all deis regarded as a great coup here, waits on the clearing house. Coras it undoubtedly averted a panic wyou will remain at the sub-treasand saved the financiers of that n all day. city. To aid in averting a panic President Thorne of the Trust they unloaded securities in Wall (mplay of America says his bank street. di givet all demands for funds or Morgan sent heavy buying orders certificates. There are $11,000,000 into the market, keeping everything the main and branch offices, with on the list from being demoralized. texasits of persons at the winCortelyou strengthened the situain withdrawing their savings. tion by ordering government funds The the stock market opened deposited in banks recommended by immilization at once set In. the clearing house. Burbers Pacific quickly lost four wints and Delaware and Hudson

3. October 29, 1907 The Salt Lake Herald Salt Lake City, UT

Article from The Salt Lake Herald, October 29, 1907

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MARKED IMPROVEMENT IN NEW YORK SITUATION Gold to the Amount of $17,000,000 Engaged in London---American Securities Are Higher Abroad. Millions of Pounds of Copper Sold and the Price AdvancedRun on Banks Has Ceased. stitution, has ended. The few depositors that came to the company's ofNew York, Oct. 28.-Late this fices on Ann street today were quickly afternoon the National City bank paid off and business resumed its norannounced that it had engaged mal routine. $1,250,000 in gold for importation Reports from trust companies all in addition to its $6,000,000 already over the city late today state that norannounced, making a total of mal conditions obtained and that in$7,250,000 for that institution, and cipient runs on several minor coman aggregate of $18,750,000 by the panies had failed to develop. various banking institutions of the city on this movement. Importations of Gold. The importation of $17,000,000 in gold, New York, Oct. 28.-The principal which comes largely from London, is having a moral effect almost as imevents in the financial district today portant as its direct influence. It indicated that the worst of the crisis means that credit can be sustained unwas over and that conditions were setder the 25 per cent reserve law to the tling down to normal. There were no amount of $68,000,000 and that the further bank suspensions, and reports banks will be in position to keep their were favorable for the resumption of cash reserves intact even against conmost of the banks which closed temsiderable demands. The fact that exporarily last week. The engagement change rates return SO quickly in faof $18,750,000 in gold from Europe for vor of this country and that the gold importation to New York was followed was SO readily obtained is accepted as by the sensational announcement of an indication that solvency of Amerisales of American copper abroad which can financial institutions is not queswill further increase the tide of fortioned in Europe. It is believed that eign money to this country to an agmuch more gold will come this way gregate of over $25,000,000. This, with within a short time. The crisis has the rapid rise of good securities on the come at the most favorable moment for stock exchange, in some cases as much the importation of gold, because the as 4 and 5 per cent, and the policy of movement of crops has created heavy the trust companies not to pay out credit balances in favor of the United currency for hoarding purposes, all States which have not been discountcontributed to strengthen the feeling ed this year by the sale of finance bills. in banking circles and among the pubAnother factor which facilitates the lic at large. So well was the situation import of gold is the large orders for in hand that there was no such scurryAmerican securities which reached the ing about of leading financiers and stock exchange today from London and hasty conferences as took place during various points on the continent. Forthe closing days of last week. J. P. eign investors study carefully AmerMorgan was in touch with the situaican properties, and they are evidently tion in his library on Thirty-sixth convinced that sound railway securistreet, but did not find it necessary to ties have touched a level which will come down town. make their purchase probable. Runs Practically Over. Foreign News Encouraging. Runs upon banks especially ceased, Prices were sufficiently fav Table a partly because of recognition that they week or two ago to induce a movement were unnecessary and unjustifiable and of this character, but it has required partly because of the policy adopted the crisis to bring the matter vividly to pay large checks only in certified to the attention of European investors, checks in depository banks. This sysSO that in this respect the trouble has tem of payment worked no apparent had a certain value as a corrective. The hardship, and was the cause of very news that American securities opened little protest. Small checks were paid considerably higher in London than on promptly in currency, and larger Saturday proved an encouragement to amounts where it was demonstrated the stock market in New York, currency was required for purposes The gold stock of the country is alother than hoarding. It is still possiready more than twice that which was ble for a frightened depositor to transavailable in 1893, even according to libfer his account from one institution to eral estimates of the amount in circuanother by depositing a check in the lation. at that time. The gold stock depository for which he now has a then dropped below $600,000,000. It is preference, but he cannot withdraw now in excess of $1,500,000,000. The large amounts in gold certificates to \ easury has free gold, not covered by be locked in a safe deposit vault, as g XI certificates in circulation, to the was the case last week. ai ant of almost exactly $250,000,000, Heavy Sales of Copper. or ve times its resources for protectOne of the sensational features of the ing public credit in 1896. A\ meeting held this afternoon, the day was the remarkable development exec committee of the Mercantile in the copper trade. The United Metassoc of New York, by unanimous als Selling company reported a sharp ted a resolution of thanks to vote, advance in the price. Copper which Secreta of the Treasury Cortelyou, they would have gladly sold ten days to and Pierpont Morgan for the imago at 12½ cents a pound commanded portant parts they played in saving 13½ cents to 13% cents a pound today. the financial situation. During the month of October the sales of this company had been between 80.-

4. October 29, 1907 The Salt Lake Herald Salt Lake City, UT

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MARKED IMPROVEMENT IN NEW YORK SITUATION Gold to the Amount of $17,000,000 Engaged in London---American Securities Are Higher Abroad. Millions of Pounds of Copper Sold and the Price Advanced— Run on Banks Has Ceased. stitution, has ended. The few deposiNew York, Oct. 28.-Late this tors that came to the company's ofafternoon the National City bank fices on Ann street today were quickly announced that it had engaged paid off and business resumed its normal routine. $1,250,000 in gold for importation in addition to its $6,000,000 already Reports from trust companies all announced, making a total of over the city late today state that nor$7,250,000 for that institution, and mal conditions obtained and that inan aggregate of $18,750,000 by the cipient runs on several minor comvarious banking institutions of the panies had failed to develop. city on this movement. Importations of Gold. The importation of $17,000,000 in gold, New York, Oct. 28.-The principal which comes largely from London, is events in the financial district today having a moral effect almost as imindicated that the worst of the crisis portant as its direct influence. It means that credit can be sustained unwas over and that conditions were setder the 25 per cent reserve law to the tling down to normal. There were no amount of $68,000,000 and that the further bank suspensions, and reports banks will be in position to keep their were favorable for the resumption of cash reserves intact even against conmost of the banks which closed temsiderable demands. The fact that exporarily last week. The engagement change rates return SO quickly in faof $18,750,000 in gold from Europe for vor of this country and that the gold importation to New York was followed was SO readily obtained is accepted as by the sensational announcement of an indication that solvency of Amerisales of American copper abroad which can financial institutions is not queswill further increase the tide of fortioned in Europe. It is believed that eign money to this country to an agmuch more gold will come this way gregate of over $25,000,000. This, with within a short time. The crisis has the rapid rise of good securities on the come at the most favorable moment for stock exchange, in some cases as much the importation of gold, because the as 4 and 5 per cent, and the policy of movement of crops has created heavy the trust companies not to pay out credit balances in favor of the United currency for hoarding purposes, all States which have not been discountcontributed to strengthen the feeling ed this year by the sale of finance bills. in banking circles and among the pubAnother factor which facilitates the lic at large. So well was the situation import of gold is the large orders for in hand that there was no such scurryAmerican securities which reached the ing about of leading financiers and stock exchange today from London and hasty conferences as took place during various points on the continent. Forthe closing days of last week. J. P. eign investors study carefully AmerMorgan was in touch with the situaican properties, and they are evidently tion in his library on Thirty-sixth convinced that sound railway securistreet, but did not find it necessary to ties have touched a level which will come down town. make their purchase probable. Runs Practically Over. Foreign News Encouraging. Runs upon banks especially ceased, Prices were sufficiently fav Trable a partly because of recognition that they week or two ago to induce a movement were unnecessary and unjustifiable and partly because of the policy adopted of this character, but it has required to pay large checks only in certified the crisis to bring the matter vividly to the attention of European investors, checks in depository banks. This system of payment worked no apparent SO that in this respect the trouble has had a certain value as a corrective. The hardship, and was the cause of very little protest. Small checks were paid news that American securities opened considerably higher in London than on promptly in currency, and larger amounts where it was demonstrated Saturday proved an encouragement to the stock market in New York. currency was required for purposes other than hoarding. It is still possiThe gold stock of the country is alble for a frightened depositor to transready more than twice that which was fer his account from one institution to available in 1893, even according to liberal estimates of the amount in circuanother by depositing a check in the depository for which he now has a lation at that time. The gold stock preference, but he cannot withdraw then dropped below $600,000,000. It is large amounts in gold certificates to now in excess of $1,500,000,000. The be locked in a safe deposit vault, as treasury has free gold, not covered by was the case last week. gold certificates in circulation, to the amount of almost exactly $250,000,000, Heavy Sales of Copper. or five times its resources for protectOne of the sensational features of the ing the public credit in 1896. day was the remarkable development At a meeting held this afternoon, the in the copper trade. The United Metexecutive committee of the Mercantile als Selling company reported a sharp association of New York, by unanimous advance in the price. Copper which vote, adopted a resolution of thanks to they would have gladly sold ten days Secretary of the Treasury Cortelyou, ago at 12½ cents a pound commanded and to J. Pierpont Morgan for the im13½ cents to 13% cents a pound today. portant parts they played in saving During the month of October the sales the financial situation. of this company had been between 80

5. March 11, 1908 Decorah Public Opinion Decorah, IA

Article from Decorah Public Opinion, March 11, 1908

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who an has the is called Indian with Senator He oratory goods be reckoned them. His in trade argument by a and merely delivers incidental and his stock backed consists mind of that facts works like lightning. the intimated I have previously emergency currency legislation is filled prospects As do for not appear with to be clouds. very bright. The sky or more groups There are half a each dozen with a is: favorite Can of statesmen. the question any and unite on the measure divergent elements There seems to proposition? at the Aldrich single a disposition to shy said to have rebill be although it K. is of the President. suggested ceived the the criticisms "O. to it, the proposed One of Owen is that available. in the National Aldrich by Senator bill, will only be banks, The first place, to few of these. relatively Iowa would and only of banks in Mr. great Owen not come mass contended in under for its banks a provisions. law that to join would in enable the country bring relief to the future the scheme when to a emergency Senator I understand having his speech who should country Owen is arise. form. and I suggest printed that the in pamphlet are interested in It is a proposition. question, persons complete write statement him for of a copy the whole When 1 came to conviction Washington that Dec. the 1st, I had a strong panic was a planned manupurpose and the country a factured affair. executed for the express lesson" and the final to President east administering of blow giving in Roosevelt. the knock-out Of in course this quarters. is denied but statesmen there are many who certain including say the people. my view. They and share in to discredit Roosevelt but that, scheme was country a 'jolt'' spread so like give a the prairie that it fire, got the away panic from the "jolt" them and rapidly the men who planned looking for, what they were not trying to got then have been and since fire out. How swiftly money condiput the change in the financial or taken a tions action voluntarily which market, or two ago by the bank of well James day Stillman is president ago this Three months itself illustrates. made haste to avail interSO national. institution resources, especially large imThe cable of all its as to secure a comportation of have gold. received a substan- the panies must that day from this Mr. tial tolls return paid London. for upon messages The cry sent everywhere from bank to money, actual currency. that dewas for hastened to meet government Cortelyou by deposits of deposited with mand which, unless have remoney, banks, would Treasury. the national in the Federal ap. mained idle the City Bank He placed with $3,500,000. and that for proximately served well the purpose money the deposit was made. which there has been a great bank, change. inNow. three months this Cortelyou Within tead of waiting for Mr. has actually to the returned to withdraw the deposits, Treasury Department the $3,500,000. money of course, means plentiful that that That, plentiful, so to hold is very cannot afford longer no this even be government bank funds, though funds. The in- It terest be paid upon protitably these used. money cannot that the return National of this money City may be by the in voluntarily which is usually the leader persuaded Bank, financial moveme. ts. the time great Cortelyou that conveniently Secretary when he may the banks has come Treasury and for considerable for the return of a the call for the the money placed with the banks part of in 1907. and especially in days of the panic. reported on good authority asIt Wall is Street and the interests now that with that street, are as the sociated to accept Secretary that Taft Taft is ready nominee: not but to republican choice of these interests' not rethe that Roosevelt is Roosemake sure Anybody but is the nominated is the cry. Roosevelt interests of velt' of the big financial to suphorror They are prepared certain the east. anybody if it can be made posport action will remove the Roosethat such of another term ander situarealize that if a Chicago becomes velt. sibility at They acute the likely and to deadlock tion develops. there is It is stampede to Roosevelt. therefore be a quite probable now that The a deadlock will not cccur. insuch I anderstand the program the volve first ballot, unless it is certain plans as the nomination of Taft on that

6. December 16, 1909 The Daily Gate City Keokuk, IA

Article from The Daily Gate City, December 16, 1909

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CENTRAL THE NO SHAM Leading business men ail country are discussing an address livered at Indianapolis the by former Secretary of the Leslie M. Shaw in opposition establishment of a central Mr. Shaw objected to such an tution on the ground that it necessari'y be privately owned, such event it would clothe the ard Oil Trust or the Steel both with the power to expand to tract the currency, thus enabling make or break railroads, companies and other corporatic will. He said that only two money interests of the countr capable of financing such a he declared he believed the bank is a scheme to centraliz financial interests of the countr place them in control of Rockefeller and the rest of said: money group. In this connecti "There are two diseases in this country, either of liable to prove fatal. One is street-mania, and the other street-phobia. I do not think have been sadly inoculated with er, but I am frank to say seems to me quite unameric place with any group of power to contract or expand rency at will and to grant or credit to any bank, to any me and to any corporation at It was charged, and as vigorous nied, that the affiliated banks York during the panic of 1907 withdrew credit from Tennesse and Iron, called their loans, au ally adjusted the matter by over the property at a fraction admitted value, upwards of 000, and paid for it in United no Steel securities, without the of a dollar in money. Assumi I charge to be libelous, it still 2 trates what could be done D group of men possessing quisite disposition to be in the central bank. Of a set Year resolutions given out a ago by Josh Billings, I rememb one: 'Resolved, That if a me a mule won't kick, I'll believ a but I won't go near the mule.' p "But, lest it be charged that a appealing to popular prejudice willing to go on record that if to have a Central bank I A e come control by the Standar company or by the United State I corporation, though preferab -9 both combined. This is not personal friendship, though measure of personal friend : hope, exists, but it is based "1 on task. the question of fitness U "At the risk of being criticise o going to inject a few statemer e commendation of the Standa E people. They rendered, by u the greatest service of any S tion or any group of people panic of 1907. From October S year until Jan. 15 following, tional City bank of New anced exports of cotton, in als, and other commodities to tent of $250,000,000. If any B stitution in the United States B a million in exports during tha e I shall be glad to know its 1 Mr Shaw declared that it u ficult to over-estimate the P this service. These exports P ed our foreign bills and paid p the gold we imported. In all this without calling a 1 same bank granted assistance " dividuals, firms and corporatio the extent of $40,000,000. said, is a wonderful record, I must be taken into the account 7 sidering this great subject. p to do these gigantic things render these herculean service -( ment essential consideration in el

7. June 12, 1912 Albuquerque Evening Herald Albuquerque, NM

Article from Albuquerque Evening Herald, June 12, 1912

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Witness in Money Trust In. vestigation Tells How King of Bankers Turned Loose Twenty-Five Millions. HERETOFORE UNWRITTEN HISTORY OF 1907 CRASH Testimony Reveals All Powerful Sway of Single Man Over Financial Destinies of American Continent. (By Evening Herald A. P. Leased Wire) New York, June 12.-Some heretofore unwritten history of how J. P. Morgan helped stem the panic of 1907, by supplying $25,000,000 at is crucial time, was dramatically told on the witness stand today by H. R. Thomas, president of the stock exchange at that time, testifying before the Pujo committee investigation the so-called money trust. Mr. Thomas said that on October 24, 1907, 60 per cent was being offered for call money and none was available. He went to James Stillman, then president of the National City bank, and asked him for relief, if possible. He told the banker that $26,000,000 was needed, he said. Stillman sent him to Morgan, saying that he would tell Morgan he was coming. When I got to Mr. Morgan's office there was great excitement," said the witness, speaking in dramatic tones and with many gestures. Mr. Morgan was in a conference and people were going in and out. The excitement was intense. I waited for some twenty minutes. He came out of his private office and said to me: "We are going to lend you. $25.000,000. Go over to the stock exchange and announce it.' 'Allow me to make a suggestion, Mr. Morgan, he sald yes, yes: what is It? "I think, I said, 'that this money should be divided up into lots and distributed among the banks. It will have a better effect. " 'Very good suggestion," said Mr. Morgan. "Perkins," he said, and snapping his fingers, Perkins divide that $25,000,000 up into small lots.' George W. Perkins, former partner of J. P. Morgan, was the "Perkins" referred to. Mr. Thomas testified that the loan had a very decided effect in relleving panie conditions. "Then it rested with one man to say whether the panic would go on? Don't you think that is a dangerous condition?" pointedly asked Samuel Untermyer, counsel for the coinmittee. "I couldn't answer that," replied the witness.

8. June 12, 1912 The Topeka State Journal Topeka, KS

Article from The Topeka State Journal, June 12, 1912

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STOPPED A PANIC Witness in the Investigation of the Money Trust Tells How J. Pierpont Morgan Saved the Country. New York, June 12.-Some heretofore unwritten history of how J. P. Morgan helped stem the panic of 1907 by supplying $25,000,000 at a crucial time, was dramatically told on the witness stand today by R. H. Thomas, president of the stock exchange at that time, testifying before the Pujo committee investigating the socalled money trust Mr. Thomas said that Oct. 24, 1907, sixty per cent was being offered for call money and none was available. He went to James Stillman then president of the National City and asked him for relief if possible. He told the banker that $25,000,000 was needed he said. Stillman sent him to Morgan, saying that he would tell Morgan he was coming. "When I got to Mr. Morgan's office there was great excitement," said the witness speaking in dramatic tones and with many gestures. "Mr. Morgan was in a conference and people were going in and out. The excitement was intense. I waited for him 20 minutes. He came out of his private office and said to me: " 'We are going to lend you $25,000.000. Go over to the stock exchange and announce it.' "Allow me to make a suggestion, Mr. Morgan. He said, 'Yes, what is it?' I think, I said, that this money should be divided up into lots and distributed among banks. It will have a better effect. 'Very good suggestion, said Morgan. 'Perkins,' he said, and snapped his fingers; 'Perkins, divide that $25,000,000 up into small lots.' George W. Perkins, former partner of J. P. Morgan was the "Perkins" referred to. Mr. Thomas testified that the loan had a very decided effect in relieving the panic. "Then it rested with one man to say whether the panic would go on. Don't you think that a dangerous condition?" pointedly asked Samuel Untermyer. "Couldn't answer that," replied the witness.

9. June 13, 1912 The Birmingham Age-Herald Birmingham, AL

Article from The Birmingham Age-Herald, June 13, 1912

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Wall Street Unearthed by Committee LOANED TWENTY-FIVE MILLIONS AT CRISIS Adequate Punishment Not Meted Out to Men Who Manipulate Stocks Falsely-Mabon Testifies New York, June -Some heretofore unwritten history of how J. P. Morgan helped stem the panic of 1907 by supplying $25,000,000 at a crucial time was dramatically told on the witness stand today by R. H. Thomas, president of the stock exchange at that time, testlfying before the Pujo committee investigating the so-called money trust. Mr. Thomas said on October 24, 1907, 60 per cent was being offered for money on call and none was available. He went to James Stillman, then president of the Nationaly City bank, and told him $25.000,000 was needed. Stillman sent him to Morgan saying he would tell Morgan he was coming. "When I got to Mr. Morgan's office there was great excitement," said the witness. "Mr. Morgan was in a conference and people were going in and out I steadily. The excitement was intense. waited for him 20 minutes. He came out of his office and said to me: 'We are going to lend you $25,000,000 and, 'Go over to the exchange and announce it. I said: 'Allow me to make a suggestion. Mr. Morgan. He said: 'Yes, yes, what is it?' 'I think, I said, 'that this money should be divided up into lots and distributed among the banks. It would have better effect.' 'Very good suggestion, said he. 'Perkins,' he said, 'divide that $25,000,000 into small parcele.' He snapped his fingers. Perkins was the Perkins referred to in other transactions." Relieved Panic Mr. Thomas said the loan had a decided effect in relieving the panic. 'Then It rested with one man to say whether the panic would noton and do you think that a dangerous condition ?" Samuel Untermeyer asked as counsel for the committee. "I could not answer that," replied the witness sotto voce. Mr. Thomas says that when he went back to the exchange and announced the Morgan loan the effect was almost instantaneous. "It popped up in a number of places instantly. The banks began to loan money and the rate on call money s dropped back to 6 per cent and then to per cent." James B. Mabon, president of the stock exchange, was questioned at length by Mr. Untermeyer in an effort to get him to admit that the New York exchange was used as an instrument to concentrate the control of securities of corporations in New York city for the benefit of the great banks. The witness conceded that the majority of the collateral ac. cepted by the banks on call loans was composed of securities listed only on the stock exchange and said, in turn, it was of great advantage to a corporation to have its stock listed there. Reason for Exchange He was reluctant to admit, however, that the chief reason why corporations listed their securities on the exchange was to give them a loanable value. Mabon mentioned Standard Oil stock as one example of an unlisted security available for bank loans and said he was sure there were others. The attorney then raised the question with the witness as to whether "manipulation on the stock exchange was not going on now as wild as ever?' "Oh, I don't think so,' Mabon replied. The stock exchange is trying to get the public's confidence. We have fined and punished members for manipulation Cne of them is S. B. Chapin, I don't remember the others. "Mr. Chapin is the man that created a fictitious market value for Rock Island?" "Yes." "You punished him terribly. I suppose." "Yes, he was punished. "By 30 days suspension?" said Mr. Untermeyer. "You call that a punishment for such a glaring piece of work as that Rock Island deal?' The witness was silent. Have Autocratic Powers In an effort to show that the various committees of the stock exchange were endowed with autocratic power in the operation of the Institution, Mr. Untermeyer read into the record a number of rules and regulations, emphasizing particularly one fixing commissions and forbidding members to split commissions with outside brokers, or with customers. Mabon was asked if he did not think the latter rule was an agreement in restraint of trade. 'Why, any group of men can get together and start another stock exchange, Mabon said. "Why make such a statement?'' snapped the lawyer. "You know that you would kill it off like you have choked the consolidated stock exchange for 20 years. "I don't think we are trying to kill off the consolidated or anything else," replied the witness with some heat. 'What do you call it then? Don't you know that it is absolutely impossible for another exchange to start under the present rules?' commented Mr. Untermeyer The hearing will be continued tomorrow

10. June 13, 1912 The Richmond Virginian Richmond, VA

Article from The Richmond Virginian, June 13, 1912

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Former Wall Street Head Describes Flooding of $25,000,600 on Floor MONEY TRUST HAD CURRENCY CORNERED Dramatic Story Is Related of Scenes Just Preceding Great Panic of Five Years Ago NEW YORK, June 12-In two minutes, J. Pierpont Morgan shoveled out twenty five million dollars, to still one the most violent storms that ever shook the New York Exchange building from turret to foundation. This was at the beginning of the panic of 1907. Until the king of millions lifted his mighty finger, the stock exchange was growing more frenzied every second. Sharp twiste had been given to the screws of contraction. and the money -the actual coin of the realm-had been drawn into the vaults of the money trust Nearly every financial institution in New York was feeling the squeeze. Brokers by the hundred, were hysterically plealing for loans to save themselves, and thousands of customers from ruin. The rate on call money had jumped to 100 per cent: but even at that offer no money was fortheoming. The best securities in America were being offered for loans. These did not tempt a frightened, timid, dollar from its safe retreat in the vaults of the money trust. But the money gushed out when Morgan waved his wand. A dramatic story of this remarkable incident was told to the Pujo committee today, by R. H. Thomas, who was president of the Stock Exchange at the time Morgan alone saved the day, by ordering George W Perkins, then one of his partners, to release $25,000,000 to the hysterical brokers. Mr. Thomas in appearance and manner, is the incarnation of the *spirit of the stock exchange. High strung. nervous. jerky in speech, and movement, he related his narrative under the examination of Samuel Untermyer, counsel to the congressional committee, investigating the money trust, almost in monosyllables and between breaths. Mr. Thomas was called to the witness stand today in place of George W. Ely. secretary of the Stock Exchange, who had proved such an obstrepous witness the day before. The committe will probably tackle the recalcitrant secretary again tomorrow Recalls It All Right. "You recall very distinctly. 1 suppose," began Mr. Untermyer. when Mr. Thomas had taken the witness chair facing him. "the stirring days of the panic of 1907. don't you?" "Yes, I do." snapped the eager Mr. Thomas "Do you remember the days that call money was exceptionally high ?" "Yes, I remember It was high. I don't know for R fact. for 1 was not on the floor, but I was told it was 100 per cent Otcober 24. 1907." Then, under only slight prompting. by Mr. Untermyer, the former president of the Stock Exchange, told excitedly of the strenuous, nerve-racking events upon the floor of the exchange and in the offices of the National City bank, and those of J. Pierpont Morgan. a half hour before the terrific strain was relieved. Call money. he sald, was posted at 6 per cent. but there was no money. In the consternation that had appalled every unit of the scrambilng. screeching mass of brokers that swirled and eddied around to Joan post, he dashed up to the City National bank in a desperate effort to get some money released from the vaults "There I saw James Stillman," Mr. Thomas said. "When 1 told him that we had to have at least twenty-five million dollars at the stock exchange immediately. or everything would go to smash. he told me to go see Mr. Morgan at once. Mr. Stillman added that before I could arrive at Mr. Morgan's office he would communicate with Mr. Morgan by telephone, and let him knew our desperate situation. When I got to the Morgan banking house, the outer room and passageways were filled with men of millions, all as badly frightened as the crowd on the floor of the exchange I had just left. Mr. Morgan was holding a conference in his private office with several financiers. Their names 1 did not get. I saw them when they emerged twenty minutes later with him, but I was too Intent on my mission to make mental note of their names,and so I cannot now recall a single one of them except Mr. Morgan. Him I was looking for, and him alone. I stepped up to him immediately. and told him that we must five million dollars at

11. June 13, 1912 Omaha Daily Bee Omaha, NE

Article from Omaha Daily Bee, June 13, 1912

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CALL MONEY AT 60 PER CENT Appeal Made by Banks to James Stillman for Aid. REFERRED TO J. P. MORGAN Conference Held in Private Office of Financier. MONEY DIVIDED UPON WORD Magnate Gives Order to G. W. Perkins to Have Cash Given to Various Banks October 24, 1907. NEW YORK, June 12.-Some heretofore unwritten history of how J. P. Morgan helped stem the panic of 1907 by supplying $25,000,000 at a crucial time was dramatically told on the witness stand today by R. H. Thomas, presidént of the Stock exchange at that time, testifying before the Pujo committee investigating the so-called money trust. Mr. Thomas said that on the morning of October 24, 1907, 60 per cent was being offered for call money and was not available. He went to James Stillman, president of the National City bank and asked him for relief, if possible. He told the banker that $25,000,000 was needed. Stillman sent him to Morgan, saying that he would tell Morgan he was coming. "When I got to Mr. Morgan's office there was great excitement," said the witness, speaking in dramatic tones and with many gestures. "Mr. Morgan was in a conference and people were going in and out. The excitement was intense. I waited for him twenty minutes. He came out of his private office and said to me: "We are going to lend you $25,000,000. Go over to the Stock exchange and announce it.' 'Allow me to make a suggestion, Mr. Morgan.' "He said, 'Yes, yes, what is it?' " I think,' I said, 'that this money should be divided up into lots and distributed among the banks. It will have a better effect.' ''Very good suggestion," said Mr. Morgan. "Perkins," he said, and snapped his fingers, 'Perkins, divide that $25,000,000 up into small lots.' George W. Perkins, former partner of J. P. Morgan, was the "Perkins" referred to. Mr. Thomas testified that the loan had a very decided effect in relieving panic conditions. "Then it rested with one man to say whether the panic would go on? Don't you think that's a dangerous condition?" pointedly asked Samuel Untermeyer, counsel for the committee. "I couldn't answer that," replied the witness.

12. June 14, 1912 Atlanta Semi-Weekly Journal Atlanta, GA

Article from Atlanta Semi-Weekly Journal, June 14, 1912

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MORGAN HELD PANIC IN HOLLOW OF HIS HAND He Stemmed It by Throwing $25,000,000 Into Crisis at Crucial Moment (By Associated Press.) NEW YORK, June 13.-Some heretofore unwritten history of how J. P. Morgan helped stem the panic of 1907 by supplying $25,000,000 at a crucial time, was dramatically told on the witness stand today by R. H. Thomas, president of the stock exchange, at time testifying before the Pujo committee investigating the so-called money trust. Mr. Thomas said that on the morning of October 24, 1907, 60 per cent was being offered for call money and none was available. He went to James Stillman, then president of the National City bank, and told him $25,000,000 was needed. Stillman sent him to Morgan, saying he would tell Morgan he was coming. "When I got to Mr. Morgan's office there was great excitement," said the witness. "Mr. Morgan was in a conference and people were going in and out. The excitement was intense. I waited for him 20 minutes. He came out of his office and said to me: A GIGANTIC LOAN. "We are going to lend you $25,000,000. Go over to the stock exchange and announce it.' I said: 'Allow me to make a suggestion, Mr. Morgan." "He said: 'Yes, yes, what is it?' "I think,' I said, 'that this money should be divided up into lots and dist tributed among the banks. It would have a better effect.' "Very good suggestion,' said Mr. Morgan. 'Perkins,' he said, and snapped his finger, Perkins, divide that $25,000,000 up into small lots." George W. Perkins was the "Perkins" referred to. Mr. Thomas testified that the loan had a very decided effect in relieving panic conditions. "Then it rested with one man to say whether the panic would go on? Don't you think that's a dangerous condrtion?" asked Samuel Untermyer, coun. sel for the committee. "I couldn't answer that," replied the witness.

13. August 12, 1914 The Birmingham Age-Herald Birmingham, AL

Article from The Birmingham Age-Herald, August 12, 1914

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umphs of recent years. Mr. Kent handles in the course of a year a great deal of foreign exchange and is one of the three who are no wspoken of as the great American leaders in this department of international finance. John A. Gardine, vice president of the National City bank, prepared the resolutions which were adopted at the conference of those who are leaders in the foreign exchange market of this city. Mr. Gardine is probably even better known by name in London and upon the continent of Europe than in the United States. Yet in banking circles the celerity and accuracy with which his great service at the time of the panic of 1907 was performed have become a tradition. Cotton brokers, the day that panic began, were in respair. Unless they were able to meet their obligations many of them would be compelled to suspend. The immediate results of suspension of that Find would be felt in many parts of the south. These brokers had cotton bills in abundance. Behind them stood cotton, one of the best of securities, and yet there was fear lest by reason of the panic they would not be able to discount or sell these cotton bills, so that, although solvent, they were in danger of becoming bankrupt. Mr. Gardine made it known that the cotton brokers would be taken care of. They brought their bills to him, many million dollars in the aggregate, in a single day. These bills were scrutinized so that t smight be known that they were all right, and then the brokers received banking accommodations. This went on from day to day until apprehension in the cotton trade was ended. But this was not the only service. With these bills as a basis, Mr. Gardine was abel to telegraph to London and secure instant remittance of gold, the aggregate in panic days amounting, according to common understanding, to over $20,000,000. So much of this was represented in the $100,000,000 in gold which London sent to the United States in her panic days. That gold did much to end the panic. The Great Leader Since 1907. an American banking institution operating under state charter, the Guaranty trust, has become one of the great banks if the world. A year ago bankers all over the United States were amazed to read the official report of the amount of foreign exchange handled by this institution in a single year. The aggregate was in excess of $2,000,000,000, a figure which will compare favorably with our total exports of that year. From 75 to 90 per cent of the cotton bills representing the planters of the south passed through this institution last year. The chief of the foreign exchange department is Max May, and both in Londn and the United States he is now regarded as one of the greatest masters of foreign exchange international finance has known since the day when the bankers of Amsterdam invented foreign exchange. Mr. May is not only a master of the practical technique of this science--for it is a science-but also of its philosophy and of its history. Mr. May and Mr. Gardine in co-operation with other masters of foreign exchange, have attempted to protect the exchange market and to create what will serve as a new precedentramely, a method by which in times of gravest crises a nation like the United States can without suspending specie payments prevent exports of gold and control erratic tendencies in foreign exchange.

14. November 3, 1920 The Manning Times Manning, SC

Article from The Manning Times, November 3, 1920

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t of the amount of money in circulation. Under the Sherman act in 1873, they brought a panic by the retirement of currency; in 1893, it was silver. We were to go from the bimetallic to the single gold basis. Everybody was told that we must maintain the gold reserve, and the first thing a man did in the morning was to look at the paper and see whether the gold reserve was up or down. Wall street would gather up currency and send it down and get gold. The treasury would issue more currency and Wall street would repeat the performance. Iti is a fool thing to look at now, but it put cotton to five cents a pound, wheat 25 cents a bushel, and Kansas farmers burned corn instead of coal. I remember in 1893, that I traveled from Bennettsville to Washington and never saw the smoke coming out of a single factory chimney. Cleveland went out of office hated by Democrats and his only defenders in congress, Republicans representing the monied interest. McKinley was elected and he brought about the first real prosperity this country had had since 1873. He did it by issuing currency and expanding the volume of credits. He followed the same policy that Bryan was defeated for advocating and coined more silver than Bryan could have coined, because Wall street was supporting McKinley and fighting Bryan. Yet strange to say, McKinley died at the hands of an assassion. He was one of the kindliest, sanest, and most lovable characters I have ever known, breathing with his dying lips forgiveness to the miserable wretch who fired the fatal shot. Roosevelt came into power, strenuous and energetic. He undertook to curb the trusts. The people backed him up, and "certain malefactors of great wealth" engineered an artificial panic to curb Roosevelt, and they did it, by contracting credits. There was the same tremendous drop in prices as in 1873, but very few failures, because it was not a real panic. Banks suspended payment; even the National City Bank of New York issued scrip. Some states passed stay laws, and we all used clearing house certificates instead of money. Now I call attention to one strange thing. In 1873 and 1893, it was a farmer panic, and no scrip was issued. We tried clearing house paper in 1893, and to his ever-lasting shame John G. Carlisle, then secretary of the treasury, placed a 10 per cent tax on it. In 1907, it was a bankers panic, and they issued all the scrip they wanted, and farmers had to take it. This is a farmers panic and I do not hear anything about stay laws or clearing house certificates. Now coming down to present conditions; Senator Aldrich of Rhode Island, a representative of Wall street, proposed the present Federal Reserve act, but before it could be passed the Republicans passed out of power and Woodrow Wilson became president. The Democrats immediately took possession of the Aldrich-Vreeland act and converted it to their own uses. They inserted section 13, which provides for the discount of agricultural paper based either on live stock or field crops, not only when in actual existence, but also for money to grow the crops. It does not say that such paper may be discounted, but that it shall be discounted. It was the intention of this act to provide an elastic currency which should contaret and expand as the business needs of the country expands and contracts. Last spring federal reserve banks were freely discounting paper on cotton as high as 35 cents a pound. This of course encouraged a large acreage and extravagance. The time to contract credits would have been then if regard was to be had to the true spirit of the law, ubt no, Wall street was gunning for the South. There was a "joker" in the Federal Reserve act just as there was in 1873. Some Republican senator stuck in a clause amending the house bill so as to compel a 40 per cent gold reserve to be maintained for the redemption of the treasury notes. Nobody seems to have attached any importance to it, but either by that or some other means, Wall street dominates the federal reserve board, as completely as it ever did the national banking act. One has only to read the statement made by John Skelton Williams, comptroller of the currency for confirmation on. I believe this is the real reason why Mr. McAdoo resigned and also why he did not desire to be a candidate for president. I wish he was in there now, for I am sure he would answer Wall street in the only way it can be answered, flood this country with credits and put prices up, so that the debts can be repaid in the same kind of money in which they were contracted.

15. November 4, 1920 The Dillon Herald Dillon, SC

Article from The Dillon Herald, November 4, 1920

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The income tax points the way to the confiscation, and used ruthlessly as it will be, it is an engine of oppression more unjust and hardly less cruel than the methods of Lenine and Trotsky. I have been through three panics in my life. The great panic of 1873, following the Civil war, was brought about by an amendment to a currency bill introduced by John Sherman. This seemingly harmless amendment was construed to mean that currency should be retired and silver coinage limited, and that all money, including silver, should be redeemed in gold. It was known as "Black Friday." The panic that followed did not hurt the South much because we had nothing left to lose. It made over night the monied class twice as rich and doubled the debts of the country. These conditions kept up more or less until 1893, when Cleveland undertook to repeal the entire purchasing clause in the Sherman act. It is a well known fact that prices of products are absolutely regulated by the increase or decrease of the amount of money in circulation. Under the Sherman act in 1873, they brought a panic by the retirement of currency; in 1893, it was silver. We were to go from the bimetallic to the single gold basis. Everybody was told that we must maintain the gold reserve, and the first thing a man did in the morning was to look at the paper and see whether the gold reserve was up or down. Wall street would gather up currency and send it down and get gold. The treasury would issue more currency and Wall street would repeat the performance. It is a fool thing to look at now, but it put cotton to five cents a pound, wheat .25 cents a bushel, and Kansas farmers burned corn instead of coal. I remember in 1893, that I traveled from Bennettsville to Washington and never saw the smoke coming out of a single factory chimney. Cleveland went out of the office hated by Democrats and his only defenders in congress, Republicans represent the monied interest. McKinley was elected and he brought about the first real prosperity this country had had since 1873. He did it by issuing currency and expanding the volume of credits. He followed the same policy that Bryan was defeated for advocating and coined more silver than Bryan could have coined, because Wall street was supporting McKinley and fighting Bryan. Yet strange to say, McKinley died at the hands of an assassin. He was one of the kindliest, sanest, and most lovable characters I have ever known, breathing with his dying lips forgiveness to the miserable wretch who fired the fatal shot. Roosevelt came into power, strenuous and energetic. He undertook to curb the trusts. The people backed him up, and "certain malefactors of great wealth" engineered an artificial panic to curb Roosevelt, and they did it, by contracting credits. There was the same tremendous drop in prices a sin 1873, but very few failures, because it was not a real panic. Banks suspended payment; even the National City bank of New York issued scrip. Some states passed stay laws, and we all used clearing house certificates instead of money. Now I call attention to one strange thing. In 1873 and 1893, it was a farmers panic, and no scrip was issued. We tried clearing house paper in 1893, and to his ever-lasting shame John G. Carlisle, then secretary of the treasury, placed a 10 per cent tax on it. In 1907, it was a bankers panic, and they issued all the scrip they wanted, and farmers had to take it. This is a farmers panic and I do not hear anything about stay laws or clearing house certificates. Now coming down to present conditions: Senator Aldrich of Rhode Island, a representative of Wall street, proposed the present Federal Reserve act, but before it could be passed the Republicans passed out of power and Woodrow Wilson became president. The Democrats immediately took possession of the Aldrich-Vareeland act and converted it to their own uses. They inserted section 13, which provides for the discount of agricultural paper based either on live stock or field acrops, not only when in actual existence, but also for money to grow the crops. It does not say that such paper may be discounted, but that it shall be discounted. It was the intention of this act to provide an elastic currency which should contract and expand as the business needs of the country expands and contracts. Last spring federal reserve banks were freely discounting paper on cotton as high as 35 cents a pound. This of course encouraged a large acreage and extravagance. The time to contract

16. December 3, 1920 The Herald and News Newberry, SC

Article from The Herald and News, December 3, 1920

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metallic to the single gold basis. Everybody was told that we must maintain the gold reserve, and the first thing a man did in the morning was to look at the paper and see whether the gold reserve was up or down. Wall street would gather up currency and send it down and get gold. The treasury would issue more currency and Wall street would repeat the performance. It is a fool thing to look at now, but it put cotton to five cents a pound, wheat 25 cents a bushel, and Kansas farmers burned corn instead of coal. I remember in 1893, that I traveled from Bennettsville to Washington and never saw the smoke coming out of a single factory chimney. Cleveland went out of office hated by Democrats and his only defenders in congress, Republicans representing the monied interests. McKinley was elected and he brought about the first real prosperity this country had had since 1873. He did it by issuing currency and expanding the volume of credits. He followed the same policy that Bryan was defeated for advocating and coined more silver than Bryan could have coined, because Will street was supporting McKinley and fighting Bryan. Yet strange to say, McKinley died at the hands of an assassin. He was one of the kindliest, sanest, and most lovable characters I have ever known, breathing with his dying lips forgiveness to the miserable wretch who fired the fatal shot. Roosevelt came into power, strenuous and energetic. He undertook to curb the trusts. The people backed him up and "certain malefactors of great wealth" engineered an artificial panic to curb Roosevelt, and they did it, by contracting credits. There was the same tremendous drop in prices as in 1873, but very few failures, because it was not a real panic. Banks suspended payment; even the National City Bank of New York issued scrip. Some states passed stay laws and we all used clearing house certificates instead of money. Now I call attention to one strange thing. In 1873 and 1893, it was a farmers' panic, and no scrip was issued. We tried clearing house paper in 1893, and to his everlasting shame John G. Carlisle, then secretary of the treasury, placed a 10 per cent. tax on it. In 1907 it was a bankers panic and they issued all the scrip they wanted, and farmers had to take it. This is a farmers' panic and I do not hear anything about stay laws or clearing house certificates. Now coming down to present conditions; Senator Aldrich of Rhode Island, a representative of Wall street, proposed the present federal reserve act just before it could be passed the Republicans passed out of power and Woodrow Wilson became president. The Democrats immediately took possession of the Aldrich-Vreeland act and converted it to their own uses. They inserted section 13, which provides for the discount of agricultural paper based either on live stock or field crops, not only when in actual existence, but also for money to grow the crops. It does not say that such paper may be discounted, but that it shall be discounted. It was the intention of this act to