16790. trust companies (New York) (New York, NY)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
state
Start Date
October 29, 1907
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
7a5b90fd

Response Measures

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

Other: Trust company presidents' committee took custody of stock (supervision) to restore confidence.

Description

Multiple articles describe the runs on New York trust companies during the Panic of 1907, temporary cessation of cash payments and an industry committee/supervision that restored confidence after gold arrivals. No article reports receivership or permanent closure; measures (clearing house certificates, trust company committee supervision, deposit/transfer of stock) indicate temporary suspension of cash payments followed by resumption.

Events (4)
1. October 29, 1907 Run
Cause
Macro News
Cause Details
City-wide financial panic / Wall Street crisis (Panic of 1907) causing heavy withdrawals from trust companies
Measures
Trust company committee supervision; Clearing House loan certificates; banks took over loans called by trust companies; trust companies made payments by certified checks payable through the Clearing House; deposit of stock with committee in at least one case
Newspaper Excerpt
New York in a foment of financial excitement, its greatest banks trembling, prosperous citizens standing all day in the cold waiting to draw their deposits from its trust companies
Source
newspapers
2. November 1, 1907 Suspension
Cause
Macro News
Cause Details
Widespread panic and heavy withdrawals led trust companies to virtually cease cash payments and savings banks to require notice (30 days); industry took temporary restrictive measures
Newspaper Excerpt
the trust companies have for the present virtually ceased to make any cash payments, while the savings banks are, by requiring a notice of at least thirty days to be given by depositors desiring to draw out funds, also now not paying out any cash
Source
newspapers
3. November 6, 1907 Other
Newspaper Excerpt
Measures for strengthening the trust companies, upon which runs have been going on were under further consideration... The directors of the Trust Company of America were in session... the taking over of the stock of the Tennessee Company held as by the Trust Company of America and the Lincoln Trust Company is only a temporary device to reestablish confidence. the trust companies committee and the clearing house committee will insist that these companies pursue in the future a policy of the strictest conservatism and that they shall not embark in any underwriting which is not capable of being converted readily into cash.
Source
newspapers
4. November 7, 1907 Other
Newspaper Excerpt
The arrangement by which the committee of trust company presidents takes control of the majority of stock of the Trust Company of America and the Lincoln Trust Company... finally cleared the air in regard to the trust company situation.
Source
newspapers

Newspaper Articles (9)
1. October 29, 1907 The Farmer and Mechanic Raleigh, NC
Article from The Farmer and Mechanic, October 29, 1907

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WALL STREET HAS PANIC TO ITSELF The Country Banks Don't Know Anything About It THE CENTER SHIFTING Millions of Dollars Poured Into South and West for Crops Piling up a Capita' That is IndependentBankers Paying 100 Per Cent for Money on Call and Southern Farmers 6 Per Cent on Time. With New York in a foment of financial excitement, its greatest banks trembling, prosperous citizens standing all day in the cold waiting to draw their deposits from its trust companies; with the great Captains of Industry holding daily meetings to try to avert more terrible disasters impending than those which were of daily occurrence; with the government of the United States drawing upon its treas-

2. November 1, 1907 New-York Tribune New York, NY
Article from New-York Tribune, November 1, 1907

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WANT MORE CURRENCY. GREATESTPRESENT NEED. : Financiers Looking to Europe for Still Greater Relief. With the subsidence of the panic in this city and the dwindling in importance of the persistent runs on various banking institutions, attention is becoming centred on the currency situation. Owing to the very extensive hoarding of cash by depositors, who in their timidity are temporarily distrustful of all banks, the available supply of currency has become seriously lessened, as the banks themselves have been obliged as a measure of safety to keep themselves well stocked with cash in these unsettled times and the trust companies have for the present virtually ceased to make any cash payments, while the savings banks are, by requiring a notice of at least thirty days to be given by depositors desiring to draw out funds, also now not paying out any cash. The action of the New York Clearing House Association in issuing loan certificates, with the object of conserving the cash resources of its member banks, has been followed by the associations of many other cities, with the result that there is a great scarcity of currency in those cities also. In Philadelphia, for example, currency is at 2 per cent premium; and from the harvest fields of the Northwest is coming an urgent demand which at present cannot be filled. MORE GOLD ENGAGED. One of the consequences of a premium being bid for currency may be that it will be possible to import gold with sterling rates higher by the amount of the premium than those at which it would otherwise be possible profitably to bring in the metal. Two engagements were made yesterday by local banking houses, one of $1,000,000 by Heidelbach, Ickelheimer & Co., and one of $500,000 by Lazard Frères, and two Chicago banks arranged for importing $1,500,000. With the arrival of the gold already engaged, aggregating nearly $25,000,000. the available supply of currency will within a few days be heavily increased, and an even larger increase is promised through the general concurrence of the national banks in the suggestion of the Controller of the Currency that they take out additional circulation. It has been suggested that the savings banks would both improve the general situation and increase their cash stores by selling to the na. tional banks their holdings of United States bonds, to be used by the banks as a basis for additional circulation. The $30,000,000 new 6 per cent New York City revenue bonds are acceptable to the Controller of the Currency as collateral against government deposits in depositary banks, to replace United States bonds now serving as such collateral, and a large proportion of the part of the issue not placed abroad will probably be so employed. PAYROLLS NOT THREATENED The fears recently expressed that large busic ness concerns would not be able to obtain eurrency with which to,meet their weekly or monthis ly payrolls seem unlikely to be realized. It the expressed policy the Incal Dinking institutions, including trust companies, which latter are now making payments by certified checks payable through the Clearing House, to furnish cash to their customers for meeting their payrolls Some concerns, however, will pay their employes partly in cash and partly in checks. On the Stock Exchange prices broke. then rallied. then broke again. the principal issues close ing rather lower than on Wednesday. Cali money opened at 20 per cent. at which rata most of the rene wals of the day were made. and did not go higher than 25 per cent. receding + in the late afternoon to 3 per cent. with per cent the rate at the close. The afternoon weakness was accompanied by reports that one or more houses which had been obliged to resort to heavy liquidation were in trouble. but these rumors were rather lacking in definiteThe policy of making call loans at the ness. low levels of yesterday afternoon is felt by leading bankers to be an unsafe one under the present money conditions. and a movement IS understood to be under way to secure an agreement among the banks to loan no further funds call on the Stock Exchange at less than 25 on cent during the next few days. The feature of per the stock market yesterday, as for several days preceding, was'the extremely large buying of stock in odd lots. for cash. PREMATURE RUMORS. Reports yesterday that various trust compa nies were already in negotiation with the Clearing House Association with a view to their admission as members are understood to be premature, but it is entirely probable that within few weeks many of the strong trust comparties a will become members of the Clearing House, the opinion being held in the best quarters that an agreement will be reached under which the trust companies will maintain a reserve approximating that required to be maintained by the national and state banks at present constituting the Clearing House Associa- 5 tion. Following the precedent established by it in 1893, the Clearing House committee has decided that. while Clearing House loan certificates are outstanding. no detailed statement of the indtvidual condition of the Clearing House banks shall be made. It is the custom now each week to announce the total general condition of the banks. together with a detailed account of the standing of each. The Clearing House commit has not decided whether or not, while the certificates tee are outstanding. it will announce the total general figures of the bank's condition. During the panicky times of 1893 the general figures were announced weekly. PLAN OF CURRENCY REFORM. The present scarcity of currency and the red course which has been had to the national bank

3. November 6, 1907 The Montgomery Advertiser Montgomery, AL
Article from The Montgomery Advertiser, November 6, 1907

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MILLIONS OF GOLD ARRIVE Gives Relief to Financial Stress. CORTELYOU IN NEW YORK Holds Conference With Morgan and Other Financiers. Those Bankers Who Saw Cortelyou, Are Now Convinced That There will Be No Extra Session of Congress. New York, Nov., 5- The arrival of the first treasure ship laden with gold for the relief of the present stringency was the feature of the financial situa. tion today The Kronprinzessen Cecilie was reported off Fire Island at o'clock in the morning and soon after 10 o'clock, sailed up to her dock and unloaded $7,100,000 of the yellow metal which will go to strengthen New York bank reserves. The Cunard Liner Lusitania will follow closely in her wake with $10,000,000 and $14,000,000 more will follow during the remainder of the week and early next week. The additional withdrawal of 75,000 pounds sterling for the United States and 25,000 pounds sterling for Canada, brings up the total gold engagements on the present movement to about $36,600,000. The news that the Bank of France had shipped 3.000.000 pounds in sterling bills to London was received here as an event of importance as indicating that French financiers were not only able but willing to help London and the United States indirectly by relieving the strain on the Bank of England, caused by the heavy American demands for gold. It is hoped that this action of the Bank of France will deter the Bank of England from raising its discount rate to seven per cent, at the meeting of the directors Thursday and the Im perial Bank of Germany from raising to its rate from six and one-half seven and one-half per cent The inference is drawn that it is likely to have this effect, because not since 1873 has the Bank of England's rate been above six per cent and only for twelve days in each of the years 1899 and 1900, has the German rate been above six per cent since 1870 Morgan and Cortelyou The presence of Secretary Cortelyou in the city on his way home to vote, gave an opportunity for further con ferences with Mr Morgan and other leading bankers. The came over from Washington with President Roosevelt vote, his way back from his home at Hempstead decided stop off and learn of the financial situation Beside Mr Morgan, Secretary Cortelyou saw George W Perkins and one or two other bankers, who acwith the him quainted of progress events. He was told that the situation in New York was rapidly improving because of the development in the last twenty-four hours. Those bankers who saw Secreta Cortelvou today, are convinced that there is no intention on the part of the President to call an ex tra session of Congress pass remedial legislation, as it is the Administration feels that the situation should settle down to basis where proper judgment can be formed on the various proposed changes in the pres. ent monetary laws. It was further understood that the administration has not yet definitely shaped the plans of a financial legislation, which it may desire to have considered at the coming session of Congress. Measures Considered Measures for strengthening the trust companies, upon which runs have been going on were under further consid. eration today. but so far it has not assistance sufficient how been clear could be rendered by other institutions and bankers without taking over assets which they do not consider absolutely "gilt edged.' The project for the acquisition of the Tennessee Coal and Iron Company by the United States Steel Corporation has improved the situation somewhat by making loans on the trust companies securities more acceptable at the banks. The situation is still far from solved, however, and its difficulties are increased by the lack of well known and responsible organization on the part of the trust companies capable of entering into definite relations with the Clearing House banks. conference) at which the details for taking over of the control of the Tennessee Coal and Iron Company by the United States Steel Corporation were discussed, was held at Mr Mor. gan's library today and attended by Mr Morgan, George W Perkins, Secre. tary Trimble of the United States Steel Corporation Vice President Davison. of the First National Bank, and Grant B. Schley, one of the of the pool which held control of the Ten. nessee stock Menace Is Removed No statement was made follow the conferences. The taking over of the stock of the Tennessee Company held as by the Trust Company of America collateral for large loan, removes a menace to the Trust Company of Amer ica's affairs and regarded by bankers generally safeguard against further financial troubles The directors of the Trust Company of America were in session for some time discussing deal. the for plans recent monthe in corner That the was turned has difficulties etary conference when today Geo. Morton, Morgan several oth Perkins, together attention financial men, known well the situation chiefly directed hroughout financial other the strain disclosed had any weeks the week spots. With the clear feel that bankers they the position to such aid should either point it Perkins Mr. said confer of series after held today the library of J. P. Mor gan: shaping spent most the sitof today This uation ap else, situation. but Reduced the much reduced cash which nomi lly for deposit in the banks, but still holds about $130,000,000 of disbursing

4. November 7, 1907 Arizona Republican Phoenix, AZ
Article from Arizona Republican, November 7, 1907

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The Latter Condition Financiers Think Will Take Place Soon The Trust Company Situation In New York Cleared Up By An Arrangement for a Supervision of Those More or Less Reckless Institutions. New York, Nov. 6. The general fi- $500,000 for Montreal. This brings the total gold engagements for America nancial situation is favorable today. to $37,500,000 which would afford the Runs on the trust companies practicalamount required for a legal reserve ly ceased under the encouraging supagainst $150,000,000. There is still some port of the trsut company committee. apprehension regarding the possible efGold engagements were further infect of the Bank of England's effort creased and the stock market rose to check the outflow of gold from Lonbuoyantly in recognition of these condon by raising the discount rate on ditions. The announcement that an Thursday. agreement at last had been reached by It is understood that the arrangewhich the Trust Company of America ment by which the committee of trust and the Lincoln Trust Company were company presidents takes control of to deposit their stock in the hands of the majority of stock of the Trust the committee of trust company presCompany of America and the Lincoln idents and were to receive all the supTrust Company is only a temporary deport required finally cleared the air in vice to reestablish confidence. What regard to the trust company situation. will be the ultimate disposition of the Now that the danger is removed it is stock has not been seriously considered believed that the situation will gradbut it is certain that the trust comually simmer down with the continuous panies committee and the clearingarrival of gold until the stringency is house committee will insist that these converted into a plethora of reserve companies pursue in the future a polmoney in the banks which usually folicy of the strictest conservatism and lows a crisis. Additional gold engagethat they shall not embark in any unments were announced today of $1,000.derwriting which is not capable of be000 account of Lazard Freres and ing converted readily into cash.

5. November 8, 1907 The Herald and News Newberry, SC
Article from The Herald and News, November 8, 1907

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GOLD COMING TO METROPOLIS. Increased Their Deposits and the Situation on the Whole is Apparently Bright. New York, Nov. 2.-The financial week came to a close today without any notable developments. The stock exchange was comparatively steady during the day with little activity. The runs upon banking institutions seem to be practically at an end and few important conferences were held by finalciers. The decine in the reserves of the New York clearing house banks was heavier then in any recent experience, bill will be largely offer by the gold a Evan next week. The 111 the reserve was about $37,000,000, but $7,000,000 of this was due to the requirements of 25 per cent against an increase in the deposits of $28,000,000. This increase in deposits in the clearing house banks apparently represents the transfer of funds from the institutions which have been subjected to runs. The actual loss in cash, therefore. was about $30,000,000, which reduced the reserve on hand to about$225,000,000. The gold engagements increased slightly today by orders from Pitssburg and other points, making the total engagements to date $29,150,000. If all of this amount should go into the reserves of the clearing house banks it would practically restore their loss of cash during the past week. Even the diversion of a part of the amount to other cities will leave the bulk of the gold arriving to go into New York banks and probably will result in an increase of reserve next week. A part of the decline in cash, in the face of heavy deposits of treasury funds, has been due to the calls of the country banks for currency. It is believed that these have been pretty largely met and that the amount will not be nearly as large during the coming week. Reports received from various parts of the country indicate that the system of meeting pay-rolls with checks instead of in currency is being largely adopted without any essential inconvenience to wage earnerns. William A. Nash. president of the Corn Exchange bank. and a member of the New York clearing house committee, said in explanation of today's bank statement that the clearing house banks have been taking over the loans called by the trust companies, and that this increased the bank loans. Mr. Nash said: "The trust companies have increased their deposits in the bank. The total deposits have thus been increased without any addition to the stock of cash and naturally the percentage of reserve has fallen. I do not regard this significant because the interest on deposits by the trust companies is payable, not in cash but in clearing house funds. "The changes in loans, deposits and reserve are SO much in the nature of bookkeeping that they should not affect the present situation. "The real matter in the bank statement is the supply of cash. The losses during the week are not greater than I expected. The shipments to the interior and the hoarding of currency account for the loss reported. "I believe that from now Oil there will be an improvement. The hoarded currency will respond, as it always has, to the premium that is being offered. The gold on the way from V in next Europe will begin to week and with it will come a falling off in the excitement about cash."

6. November 9, 1907 Pullman Herald Pullman, WA
Article from Pullman Herald, November 9, 1907

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About the Money Market To devise a plan for furnishing money to move the big wheat crop of the northwest the Spokane clearing house association has called a meeting of all the bankers of the Inland Empire, to be held in Spokane Sunday morning. It is expected that not less than 150 bankers, representing as many banks, will attend. The meeting will be held in the large banquet room at Davenport's restaurant, convening at 11:45 o'cloci in the morning and taking luncheon before any business is dis cussed. It is said arrangements have been made whereby money will be secured for the movement of the northwestern crops. Sufficient funds have been received in St. Paul for the movement of wheat crop and no further difficulty would be encountered by the banks in this respect. The Title Guarantee and Trust company of Portland, Ore, has passed into the hands of a receiver. The usual restrictions for the protection of depositors in such cases are to control the acts of the receiver. The general condition of the financial situation was favorable in New York last Thursday. The runs on the trust companies had practically ceased under the encouraging influence of the support of the trust company committee; gold engagements were further increased and the stock market was bouyant. Now that the arbitrary strain has been lessened locally in New York the banks have begun preparations to ship all available currency to the northwest to aid the movement of the crops. While there is concerted action among the city's banking institutions to meet the demands for currency now being made by banks in the crop country the individual banks will send all funds that can possibly be spared for the purpose. Estimates of the combined amounts that the New York banks will send to the northwest within the next six weeks vary. President J. J. Hill held a conference in New York with the officers of the Chase bank, at which, it was stated. he asked that the northwest be given all possible assistance to move the crops. Mr. Hill was informed that while the local bans could not furninsh the usual amount of money for crop movement purposes, they were anxious to do all they could to expedite the shipment of cereals to the seaboard, whence they could be sent aboard and thereby strengthen the country's position in the foreign market. "We have started to send all the funds we can to the northwest, said a bank official, and while the amounts in individula instances are not very large figure before long. Within a week or more the flow of gold to the wheat fields will be in steady volume varing in sums from $5000 to $50,000. Mr. Hill was here and conferred with us on the situation along the lines of his roads. We promised to do all we could. A ready solution of any difficulties in the northwest can be found by the farmers themselves of an opportunity to use cashiers' checks, but that is a process of education which may or may not be difficult to work out." SAYS WIFE SET HIM ON FIRE

7. November 14, 1907 The Idaho Recorder Salmon, ID
Article from The Idaho Recorder, November 14, 1907

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MONEY IS NOW FLOW BACK INTO Runs on Treasure Vaults cally Ceased and Only Tro Feature is Tendency Blockade of Domest Exchange. New York.-Runs on the trust companies are practic money, which was tempora drawn from banks subject flowing to the stronger bani rency is being provided in where the demand for it is legitimate. Further enga gold by Boston and other brought up the total abroad under the recent $26,550,000. Balances with the cleari have settled down to a :ion, but there is still blockade of domestic through the unwillingness York banks to pay currency from other cities and the ness of other cities to pay currency upon drafts from The condition of affairs continued pressure for curr than a breakdown of credit sonable demands are bei regular customers of the possibility of hastening movement of wheat and engages the attention of change dealers, and also of endeavor to keep in touch general situation. Doubt is expressed whet retary of the treasury will carry out on any consider the project of the New Orle ers for accepting cash at fiscal agencies abroad an ring it by telegraph to poi country, but Secretary Co said to be willing to make its of public money at cott ing points as will to a consi tent relieve the strain.

8. November 15, 1907 The Columbia Herald Columbia, TN
Article from The Columbia Herald, November 15, 1907

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NEW YORK, Nov. 10.-The most eventful week in the financial history of the present generation came to a close Saturday with conditions much clearer than a week before, but with some clouds still hanging over the financial horizon. The previous week had closed with the disquieting announcement that the New York bank reserves had lost $30,000,000 in cash in spite of the deposit by the Government during the week of nearly equal sum, reporting a net cash loss of $60,000,000. The bank statement of yesterday changed this situation. While it shows a nominal decrease in required reserves of $13,085,800, more than two-thirds of this decrease is due to the reserve requirements caused by in crease in deposits because of the taking over of loans from the trust companies by the banks. Moreover, the actual cash loss of $4,313,000 is due to the system of averaging accounts for the entire week, including several days before the arrival of the new gold. Unless demands from the country are very heavy next week, the arrival of additional gold will more than offset the loss of cash last week and make a creditable showing for reserves on Saturday next. The week began on Monday with a feeling of grave doubt as to the future of the trust companies which had been subjected to severe runs. The possibility that they might go down and drag with them much of the financial structure which still stood erect kept Mr. Morgan, the trust company Presidents, and other financial leaders in almost continuous session until late Sunday morning and again on Wednes] day until 3 a. m., when it was finally

9. November 21, 1907 Shiner Gazette Shiner, TX
Article from Shiner Gazette, November 21, 1907

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reproduction of the native environment of the plant, such - as moisture conditions, cultivation or mulching, will be studiously attempted. It is expected that the government experts will visit South Texas and give the benefit of their wide experience in other lands. Their opinion so far seems to be that the soil conditions are favorable, that the climate is not of such a nature as to prohibit the successful culture of certain of the commercial varieties, and it is probable that some of these sorts will be successfully grown and will develop for themselves a market in this country. This is one of the new promising and very interesting problems which are up for solution at the South Texas Garden. o Senator Senter gives out statement on race for Attorney G'eneral. Fourth trial of Caleb Powers for killing of Governor Goebel comences at Lexington Ky. Financial situation makes further progress toward resumption of normal conditions. J. E. Blackburn of Kentucky appointed Distriet Judge in Pana. ma canal zone. New York woman shot and kined by a man whose attentions sh had spurned for ten years. New board of directors' of Ten nessee Coal, Iron and Railroa I Company elected. Pittsburg woman loses $12,000 worth of diamonds in New York Attorney General Hadley of Missouri answers George Gould's comments on Missouri's 2-cent passenger fare. Pennsylvania-John Sheaty (Republican) elected Governor. Nw York-The bank situation is growing more favorable every day. The runs on the trust companies have practically closed. New York-The telegraphers strike has been officially called off