16378. New York trust companies (New York, NY)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
state
Start Date
October 28, 1907
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
bc5812d8

Response Measures

Accommodated withdrawals, Public signal of financial health, Capital injected, Books examined

Description

Articles describe the October–November 1907 runs on New York trust companies during the Panic of 1907, subsequent cooperative measures (capitalists, Treasury, injections of cash) and by late December 1907 the premium on currency fell and withdrawals subsided; indication that some trust companies had suspended earlier but operations were being restored. Because the input refers to a group (plural) rather than a single institution, bank_name_unsure is true.

Events (3)
1. October 28, 1907 Run
Cause
Macro News
Cause Details
Contagion from the wider financial crisis (Panic of 1907), hoarding of currency and systemic money-market panic leading to withdrawals from New York trust companies.
Measures
Large injections of cash into vaults by capitalists and banks; cooperation with Treasury; increased reporting/central authority for trust companies; sub-treasury and gold imports to relieve strain.
Newspaper Excerpt
Millions of ready money had to be thrown into the vaults of the trust companies which were sustaining a run
Source
newspapers
2. November 1, 1907* Suspension
Cause
Macro News
Cause Details
As a consequence of the panic and heavy withdrawals, many trust companies invoked notices/temporary restrictions (60-day notices) or otherwise suspended normal withdrawals during the crisis.
Newspaper Excerpt
withdrawals from the New York trust companies during the runs... the sixty days period of notices required at the time of the runs on New York trust companies
Source
newspapers
3. December 27, 1907 Reopening
Newspaper Excerpt
New York banks appear to have gained upwards of $3,000,000 cash during the week... An excellent impression was made by the insignificant withdrawals from savings bank deposits which followed the expiration of the sixty days period of notices required at the time of the runs on the New York trust companies.
Source
newspapers

Newspaper Articles (11)
1. October 28, 1907 Los Angeles Herald Los Angeles, CA
Article from Los Angeles Herald, October 28, 1907

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Deposits Withdrawn The events in New York resulted in drawing down the deposits of banks, thus diminishing the very basis of the volume of credits. The consequence was a vioof credits on values where the a lent task blight constriction confronting financial it which touched. generals proved The in New York was to limit as far as possible the field of operation of these constrictions of credit. The secretary of the treasury came into co-operation with the great capitalists of the country to supply resources for meeting the crisis. The requirement was a heavy one, owing to the contagious nature of the financial fight, and the general movement which followed among banking institutions to fortify themselves even beyond their needs. Millions of ready money had to be thrown into the vaults of the trust companies which were sustaining a run, while demands were made on the banks by other trust companies, which had funds on deposit with the banks. As the great depository center of the country New York banks are subject to similar demands from all over the country during a period of threatening money conditions. The consequence was that credit in certain departments of the money market was practically paralyzed. This was true of operations in the stock market, where a condition of deadlock had developed by Thursday, which was only broken by the offering of $25,000,000 on call when the traders were in greatest need of it. Flurry Not Ended It is not expected that affairs will subside immediately into placidity after after so violent an upheaval. The lopping off offending members of the financial body has made wide progress, and a removal of an offending factor in the banking situation is viewed with gratification by all friends of solidity and safety in banking. Even greater gratification is felt over the opening of the way to reform New York trust company situation. Orderly co-operation and mutual assistance among these powerful institutions are in themselves important achievements and notable additions to the fortifying of the whole financial fabric. These measures have sprung up, full grown out of the week's situation. Provision for systematic information of the actual condition of the trust companies and periodical reports of this to their own central authority, in the manner of clearing house committees among the banks, are safeguards that every banker in the country will regard with satisfaction. The close of the week found confidence maintained in the efficiency of the measures adopted. The Saturday bank statement, while reporting a small dencit below the legal reserve requirements, exhibited no such depletion of available banking resources as would threaten a present paralysis. The inauguration of gold imports from London is regarded as certain to have important effect on relaxation of strain.

2. November 12, 1907 Omaha Daily Bee Omaha, NE
Article from Omaha Daily Bee, November 12, 1907

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Temperature at Omaha yesterday: Hour. Deg. 26 5 a. m BETTER 26 6 a. m GIT THIS 25 READY! 7 a. m 25 8 a. in 25 9 a. m 25 10 a. m 26 11 a. m 26 12 m 26 1 p. m 26 2 p. m 27 3 p. m 26 4 p. m 26 5 p. m 26 6 p. m 26 7 p. m 25 8 p. m 25 9 p. m DOMESTIC. John Collier, who is charged with killing his father-in-law, was acquitted by a Page 1 jury at Pana, Ill. Grover Cleveland has recovered suffPage 1 ciently to go rabbit hunting. The trial of Mrs. Phillips on the charge of shooting her husband has begun at Cleveland. Page 1 Philadelphia Methodist church passes resolutions defending A. J. Detsch, who is accused of killing a man in defense of his home. Page 1 Statements that a package of letters written to Jefferson Davis contain requests made by Generals Grant and Thomas and Admiral Farragut for commissions in the confederate army have raised a storm in Grand Army circles and have met with prompt denial. Page 1 Charges have been filed already against the newly appointed marshal of Oklahoma. Page 1 Madame Anna Gould denies story she Page 1 is engaged to anyone. New York Trust companies are back in their usual channels of business. One Oakland, Cal., bank closes its doors and an application for a receiver is made for a New Jersey copper company. Page 1 The national meeting of the American Federation of Labor is in session at Norfolk, where a fight is being put up against the re-election of President Gompers. Fourth trial of Caleb Powers has been Page 1 called at Georgetown, Ky. Snow has fallen over the United States and unseasonable weather prevails. Page 1 Illinois appellate court decides school fraternities may be regulated by the Board of Education. Page 1 Supreme court of the United States decides that a colored man, being a citizen, must depend on the state courts for protection. Page 1 Iowa state foot ball eleven is beginning to regard itself in the class of Minnesota. Page 1 NEBRASKA. Nebraska Telephone company has asked permission of the Railroad commission to reduce the number of hours when night rates are charged for Nebraska business. Page 3 FOREIGN. Aeroplane makes a successful trip of a kilometer at Paris. Page 1 MOVEMENTS OF OCEAN STEAMSHIPS. Port. Arrived. Salled. NEW YORK Columbia MOVILLE Caledonia SOUTHAMPTON. New York SOUTHAMPTON. Kaiser Wilhelm II

3. November 17, 1907 The Morning Astorian Astoria, OR
Article from The Morning Astorian, November 17, 1907

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NEW YORK, Nov. 16.-"I believe, said Secretary Cortelyou to the Merchants' Association in New York, "That if the money of the country, wherever hoarded, were at once put back to fulfill its functions in the channels of trade, there would be within 24 hours an almost complete resumption of business opera. tions." It is upon this situation that the attion of the financial world has been converged the past week. The seat of difficulty was subject to constant and somewhat differing discussion, but the differences did not check diligent and powerful efforts to remedy the difficulty and the declining tendency of the premium on currency was an index of the growing success of these efforts. It is estimated that the effect of the ruling premium on currency has already drawn out from hoarding a very large proportion of cash which was withdrawn from the New York Trust Companies during the runs and thus is restoring it to channels of banking operations. The monthly statement of the Treasury Department shows that the amount of all kinds of money in circlation November 1 to be $2,876,368,000 which was an increase compared to October 1 of more than $75,000,000.

4. November 17, 1907 Arizona Republican Phoenix, AZ
Article from Arizona Republican, November 17, 1907

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# THE MONEY # HIDING OUT Secretary Cortelyou Says is Cause of the Trouble Measures On Foot to Coax It Back Into Channels of Trade. New York, Nov. 16.-"I believe," said Secretary Cortelyou to the Merchants' Association of New York, "that if the money of this country, which we have hoarded, were at once put back to fulfill its functions in the channels of trade there would be within twenty-four hours, an almost complete resumption of business operations." It is upon the situation adverted to, that attention was converged in the financial world during all the past week. It was a subject of some discussion but the differences did not check deligent and powerful efforts to remedy the difficulty and the declining tendency of the premium on currency was an index of the growing success of those efforts. The premium on currency is increasingly understood to be in reality a discount on bank checks, caused by the dislocation of exchange operations. It is acutely observed that payment for currency at premiums in these transactions have been in certified checks on banks and that the proceeds of the transactions have found their way into bank deposits, notwithstanding the holding of currency is supposed to have involved a distrust of banks. From this it is inferred that conditions were precipitated in no small part by the deliberate hoarding of money on large scales by speculators who sought profit in operations. It is estimated however, that the effect of the ruling premium on currency has already been to draw out from hoarding a very large proportion of the cash which was withdrawn from the New York trust companies during the runs, and thus to restore it to the channels of banking operations. Another factor in the depletion of the currency has been the movement of money into interior banks where it apparently disappeared in a large part completely from channels of circulation.

5. December 27, 1907 Los Angeles Herald Los Angeles, CA
Article from Los Angeles Herald, December 27, 1907

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NEW YORK STOCK AND BOND MARKET By Associate3 Press. NEW YORK, Dec. 26.-The money situation continued to manifest its influence today by keeping down the volume of transactions in stocks. rather than The by notable depression in prices. any market was so near the point of stag. for nation that there was little demand loans on call. and the quoted rate was unaffected in a degree to correspond The renewal rate was well maintained. however. The extension of the holiday the the London market throughout dealin took off a portion of the usual of the day and aggravated the dullness ings market. Aside from the immediate is a of the money market there the persistence course of some anxiety over situation working out of the commercial over the end of the year. favorable development in this partic- the A is some revival. as reported in banks ular demand of smaller interior throughout the country, for mercantile in Provision for large maturities in the paper. field which fall due early the this year is of great importance to break new working out of conditions, which down at some point. Mills and wholesalers in various som- lines trade are carrying large lines with of the of mercial paper for customers for that any undue pressure failures. settlement certainty might precipitate comReports of the New York trust 19 in of conditions on December bankpanies to the call of the state of the response department. by comparison various ing items with those of the preceding general of August 22, reveal how incall severe was the pressure on these the and stitutions during the period of crisis. heavy shrinkage in deposits and few The loans is not at all confined to the subin companies that were immediately instituto spectscular runs. The ject tions having .rept most of their clearing reserve on deposit with the the reresources banks, the extent to which house have been impaired maintains drain in- a sources exhibit of the severe to the striking upon the banks in addition interior volved withdrawals of deposits of banks. The incidents of the day were few. by of easier money were kept treasury up Hopes of the intention of the witha department story to make the pending from drawals of government deposits all in western banks, rather than from of proportion, owing to the indications banks in of cash by interior office. hoarding returns to the controller's this There the was no official sanction for report. There was a strong rebound in the the exchange market, made by reforeign for cable transfers, especially remitrate the belated demand for necessitance garding in time for the year end ties. declaration of the dividend on The Pacific to be paid in stock con- by Missouri the expectation foreshadowed itfirmed previous movement of the stock of the Pennsylvania was the subject comunfavorable self. rumors regarding continued the earning report. Pressure American ing New York Centra! and on Railroad earnings in general Sugar. under discussion and the prospect in the were their decline was a main factor of tone of the whole list. Delaware decision heavy Hudson was helped by the com to & maintain the dividends for the ing year at last year's rate. The weekly statement of the Bank of showed but slight changes of in France various items and the statement the the Bank of England was postponed, owing to the London holiday. The stock market was practically in the a of suspended animation during state latter part of the day, but prices yielded up to the closing. Bonds were irregular. Total sales, par value, United $87,000. States 2s advanced 1/2 per cent on call.

6. December 28, 1907 Daily Arizona Silver Belt Globe, Miami, AZ
Article from Daily Arizona Silver Belt, December 28, 1907

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STRONG RALLY ON NEW YORK CHANGE Premium on Currency Drops and Banks Increase Cash $3,000,000 in Week. NEW YORK, December 27.-Prices of stocks had a comprehensive and substantial rally today. The volume of the market expanded considerably, but the increased business was poorly distributed, being concentrated in favorite stocks of the speculative element. The demand was generally ascribed to covering operations by bears. Some of the day's incidents were offered as positive factors toward a betterment of sentiment. One was the falling off of the premium on currency and the inference of a subsidence of a demand in that field. New York banks gained unwards of three millions in cash during the week. An excellent impression was made by the insignificant withdrawals from savings banks deposits which followed the expiration of the sixty days period in notices required at the time of the runs on New York trust companies. A sharp reaction in foreign exchange rates marked a cessation of demand against gold engagements abroad. Gains in the prices of stocks was nearly all maintained in spite of a late rise in money rates. Bonds were steady.

7. December 28, 1907 Arizona Republican Phoenix, AZ
Article from Arizona Republican, December 28, 1907

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MARKET REBOUNDED WERE MANY FACTORS The Light Withdrawals From the Savings Banks an Encouraging Sign. New York, Dec. 27.-Prices of stocks had a comprehensive and substantial rally today. The volume of the market expanded and considerably increased business though it was poorly distributed and concentrated on favorite stocks of the speculative element. The demand was generally ascribed to covering operations by the bears. Some of the day's incidents offered positive factors toward a betterment of sentiment. One was the falling off of the premium on currency. There is an inference of a subsidence of the demand in that field. Banks gained upward of $3,000,000 in cash during the week. An excellent impression was made by the insignificant withdrawals from the savings bank deposits which followed the expiration of the sixty day's notices required at the time of the runs on the New York trust companies. A sharp reaction in foreign exchange rates marked a cessation of the demand against gold engagements abroad. The gains in the prices of stocks were nearly all maintained in

8. December 28, 1907 Albuquerque Morning Journal Albuquerque, NM
Article from Albuquerque Morning Journal, December 28, 1907

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tive support in the market and the de- sire to help market value of securitier for the showing in yearly balance sheets as of December 31 was believed to furnish the motive for some of this support. Some of the day's incidents offered positive factors towards a bet- terment of sentiment. One was the falling off in the premium on currency and the inference of a subsidence of the demand in that field. The figures of the week's currency movement of- fered corroboration for this inference. The shipments of currency to the in- terior by the banks were less than last week and the transfers to other points through the sub-treasury were decidedly the smallest for for any week since the financial disturbance set in. In consequence with these condi- tions the Bank of England sold all of the gold in the open market in Lon- don at a recession from the preceding market price. This had an encourag- ing effect on London sentiment to- wards American affairs, London was couraged also by a subsidence of the demand for gold on German account and a recession in the private dis- count rate in Berlin further quieted apprebension regarding the position at that point. The Imperial Bank of Germany made some accession to its gold holdings for the week, but showed a heavy expansion of note is- sues and of credits. The Bank of England's return was decidedly weak. Its decline in percentage of reserve to liabilities from 45.90 to 40 per cent compares, however, with, a decline from 38.50 to 87.12 per cent in this weck last year. By reason of the con- tinued inflow of gold this week and of large payments at the sub-treasury. together with the diminished move- ments to the interior, the New York banks appear to have gained upwarda of $3,000,000 cash during the week. A further substantial reduction in the deficit is promised therefore. The sub-treasury payments reflect in part the currency deficit in the government revenues, the excess of government expenditures over receipts for Decem- ber thus far having reached $6.479,- 157, compared with an excess of re- ceipts over expenditures in the corre- sponding period last year of $7,297,- 783. It is this course of the government revenues operations which keeps alive the question of an carly necessary draft by the treasury on the deposits with the national banks. An excellent impression was made by the insignifi- cant withdrawals of savings banks de- posits which have followed the expir- ation of the sixty-day period of notices required at the time of the runs ors New York trust companies. Withdrawals now would forfeit the six months' interest due at the end of the year and the short perior yet to expire of that period is believed to have helped towards keeping down the withdrawals of deposits. A sharp réaction in foreign ex- change rates marked the cessation of demand against gold engagements abroad. The week's exports of wheat and corn also fose to the largest fig- ures for the present season. The gains in prices of stocks were nearly all maintained in spite of a late rise in money rates. Closing stocks: Amalgamated Copper 17 American Smelting and Refining 79 do preferred 91 Anaconda Mining Company 29 Atchison 76½ do preferred 85 Baltimore and Ohio 81½ do preferred 76 Central of New Jersey 163@170 Chicago Great Western 7½ Chicago and Northwestern 154½ Chicago, Milwaukee and St. Pani 104½ C. C. C. and St Louis 54½ Colorado Puel and Iron 19 Colorado and Southern 20½ do first preferred 10½ do second preferred 40 Delaware and Hudson 145½ Del Lackawanna and Western 415@425 Denver and Rio Grande 79 do preferred 54½ Bilinois Central 121½ Minna Paul and Sault Ste. M 79 do preferred 116@120 Missouri Pacifie 46½ Missouri Kansas and Texas 25½ do preferred 72½ New York Central 91 Pennsylvania 110½ Rock Island Company 15½ St. Louis and San Fran 2d pfd 29 do preferred 108 outhern Pacific 72½ de preferred 108½ Texas and Pacific 19½ Toledo St. Louis and Western 12@ 15 do preferred 25 Enion Pacific 118½ do preferred 79 nited States Steel 56½ preferred 87½ Western Union 55 Worthern Pacific 118½ faf Northern 116

9. December 28, 1907 The Birmingham Age-Herald Birmingham, AL
Article from The Birmingham Age-Herald, December 28, 1907

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pares, however, with a decline from 38.50 to 37.12 per cent in this week last year. By reason of the continued inflow of gold this week, and of large payments at the sub-treasury, together with the diminished movement to the interior, the New York banks appear to have gained $5,000,000 cash during the week. A further substantial reduction in the deficit is promised, therefore. The sub-treasury payments reflect in part the current deficit in the government reveneus, the excess of government expenditures over receipts for December, thus far having reached $6,479,157, compared with an excess of receipts over expenditures in the corresponding period last year of $7,297,783. It is this course of the government revenue operations which keeps alive the question of an early necessary draft by the treasury on the deposits with the national banks. An excellent impression was made by the insignificant withdrawals of savings banks deposits which have followed the expiration of the 60-day period of notices required at the time of the runs on New York trust companies. Withdrawals now would forfeit the sixmonths' interest due at the end of the year, and the short period yet to expire of that per cent is believed to have relapsed toward keeping down the withdrawals of deposits. A sharp reaction in foreign exchange rates marked the demand against gold engagements abroad. The week's exports of wheat and corn also rose to the largest figures for the present session. The day's gains in prices of stocks were nearly all maintained in spite of a late rise in money rates. Bonds were steady. Total sales, par value, $1,914,000. United States bonds were unchanged on call.

10. December 28, 1907 Los Angeles Herald Los Angeles, CA
Article from Los Angeles Herald, December 28, 1907

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NEW YORK STOCK AND BOND MARKET By Associated Press. NEW YORK, Dec. 27.-Prices of stocks had a comprehensive and substantial rally today, and the volume of the market expanded conElderably. The increased business was poorly distributed and was concentrated in the favorite stocks of the speculative element, indicating the professional source of much of the buying. The demand was generally ascribed to covering operations by the bears, who sold the market freely during the high money period of the last few days. One of the houses making large purchases of stocks today advised its customers against short sales at present, on the ground that the intended liquidation would be withheld from the market wherever possible until money be. came easier, after the first of the year. There was some active support in the market, and the desire to help market values of securities for the showing in yearly balance sheets as of December 31 was believed to furnish the motive for some of this support. Some of the day's incidents offered positive factors toward a betterment of sentiment. One was the falling off in the premium on currency and the inference of a subsidence of the denand in that field. The figures for the week's currency movement offered correboration for this inference. The shipments of currency to the interior by the banks were less than last week, and the transfers to other points through the sub-treasury were decidedly the smallest for any week since the financia: disturbance set in. In consonance with these conditions the Bank of England secured all of the gold in the open market in London at a recession from the preceding market price. This had an encouraging effect on London sentiment towards American affairs. London was encouraged also by a subsidence of the demand for gold on German account, and a recession in the private discount rate in Berlin further quieted apprehension regarding the position at that point. The Imperial Bank of Germany made some accession to the gold holdings for the week, but showed a heavy expansion of note issues and of credits. The Bank of England's return was decidedly weak. Its decline in percentage of reserve to liabilities from 45.90 to 40 per cent compared, however, with a decline from 38.50 to 37.12 per cent in this week last year. By reason of the continued inflow of gold this week and of large payments at the subtreasury, together with the diminished movement to the interior, the New York banks appear to have gained upwards of $3,000,000 cash during the week. A further substantial reduction in the deficit is promised, therefore. The sub-treasury payments reflect in part the current deficit in the government revenues, the excess of government expenditures over receipts for December thus far having reached $6,379,157, compared with an excess of receipts over expenditures in the corresponding period last year of $7,297,783. It is this course of the government revenue operations which keeps alive the question of an early necessary draft by the treasury on the with the national banks. An exwas made by cellent deposits impression banks' the insignifi- deposits (ant withdrawals from savings which have followed the expiration of the 60days period of notices required at the time of the runs on New York trust companies. Witherawals now would forfeit the six months interest due at the end of the year, and the short period yet to expire of that period is belleved to have helped towards keeping down the withdrawali of deposits. A sharp reaction in foreign exchange rates marked the cessation of demand against gold ngagements abroad. The week's exports of wheat and corn also rose to the largest figures for the present season. The gain in prices of stocks were nearly all maintained in spite of a late rise in money rates. Bonds were steady. Total sales, par value, $1,913,000. United States bonds were unchanged on call.

11. January 23, 1908 The Fulton County News McConnellsburg, PA
Article from The Fulton County News, January 23, 1908

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FINANCIAL Jones & Laughlin once more deny that United States Steel is going to buy them out. A Midvale Steel Company director says the 1907 output exceeded that of 1906, but definite figures are not issued. Brokers are almost unanimous in their belief that short covering has caused most of the recent rally in stock prices. William M. Bayard, a floor broker on the Philadelphia Stock Exchange, has been suspended for six months "for actions detrimental to the interests of the exchange." Pennsylvania and New York Central were the market leaders. Central rose over 4 per cent. and got above par, for the first time in, a long while, and Pennsylvania was up nearly 2 per cent. to 116½. The Pennsylvania has reduced all track labor on the whole system to forty hours per week. All shop hands have also been cut to forty hours per week. The track hands and the shop hands have been working recently about an average of nine hours per day. It was said that the strength in New York Central was due to calling of stock which had been lent for a long time past. This forced covering of shorts in a narrow market. The squeeze is likely to be followed by the delivery of that stock as it was sold long ago, New York trust company deposits prior to the panic were nearly four times as large as trust company deposits in Philadelphia, but New York companies lost $253,000,000 of deposits at that time, while Philadelphia trust companies only lost $25,000,000 between May and December. A despatch from Pittsburg says that iron bar prices are lower than they have been in several years, and sales have been made as low as $1.35 per hundred pounds. Many of the large producers have been endeavoring to maintain prices at $1.40, but there has been considerable underselling.