Trust Company (New York, NY)

Episode Information

Episode UID
5676432591294
Episode Type
Run Only
Bank Type
trust
Bank ID
567643259 hash
Start Date
October 22, 1907
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
97390abb048a4a62

Response Measures

None

Events (1)
1. October 22, 1907 Run
Cause
Macro News
Cause Details
Part of the nationwide Panic of 1907 which precipitated heavy withdrawals from major New York institutions
Measures
Managed business to sustain the run; paid off a $25,000,000 loan arranged during the panic; temporarily closed doors Oct. 22
Newspaper Excerpt
The Trust Company of New York successfully withstood a run; closing its doors October 22 to prevent run on the bank
Source
newspapers

Newspaper Articles (6)
1. November 1, 1907 The Ordway New Era Ordway, CO
Article from The Ordway New Era, November 1, 1907

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Mis Cellaneous. last trip the turbine steamer er made the run from New 22 DO ala Queenstown in four days, and 46 minutes. men were killed and three seinjured in a wreck on the Ohio railroad at Pomeroy, Ohio. resolutions adopted by the NaCivic Federation at Chicago deof a nonpartisan commission in the interests of capital, labor - general public shall be repreIdent Schneider of the Chicago board wants to adopt the Japaaperial rescript on education as ndard for moral and ethical 4 in the public schools of that British steamer Pampico, from re to Rotterdam, was abandmidocean. The crew were dent Roosevelt has been urged emmend a revenue tax on fireBO the next congress, the proNO be used in investigating teand its treatment. attempt was made recently to the entire Muskogee, 1. T., Oil fire. cannery men of southeastern are demanding a revision of inese exclusion law. Tne scarcoolie labor is hurting their s a address before the National Federation at Chicago Charles es, former comptroller of the cy. defended the Wall street ers. and charged the federal deant of justice with making y plays." Ishland, Wis., a mixing mill of antic Dynamite company's facsploded, killing four men. Oriental liner Empress of sank recently alongside its Vancouver, B. C. official air line measurements WO leading balloons in the Benrace is rommern, 873.4 miles sle de France, 867.4 miles. to get their affair in shape. than 500 persons lost their the recent earthquake shocks Det earnings of the Missouri and Iron Mountain systems for cal year ending June 30 were 272.49. Kansas board of control, which rge of nine state hospitals and wants a hospital for the care riminal insane. to the general feeling of unNevada financial circles Gov. declared three days legal holiorder to give the banks a York financiers believe the if the flurry in Wall street is w. The Trust Company of successfully withstood a run proportions and a better feelvailed generally. first of the balloons entered ace for the James Gordon Benwhich started from St. Louis near Hamilton, Ont., about in a straight line from the point. The balloon was the States," in charge of Maj. prepared upon the general of the delegates to The eace conference show the cost been $3,768,000. including dintelegraph tolls. heat acreage in Oklahoma is cent greater this year than has in reason ed in of en, show Garber to the church Western better New of the York, its in Oklahoma Union decoration for service the poisoned not village Telegraph doing near- the so. or- of a X congregation. preme court of the United declined to grant the s Kansas to reopen, the

2. September 1, 1908 Tonopah Daily Bonanza Tonopah, NV
Article from Tonopah Daily Bonanza, September 1, 1908

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TRUST COMPANY PAYS OFF LOAN (By Associated Press.) NEW YORK, Aug. 31.-The Trust company of New York, upon which a sensational run was precipitated during the financial panic of 1907, has managed its business so successfully as to enable it to pay off a loan of $25,000,000 which was then effected in its entirety. The company in point of assets and liabilities was the second largest in the country, and the run which it successfully sustained exceeded any ever known in the history of America.

3. April 14, 1928 Los Angeles Evening Post-Record Los Angeles, CA
Article from Los Angeles Evening Post-Record, April 14, 1928

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Growth of Bank of Italy Dates From S. F. Fire By REED HAYES CHAPTER XII of the Bank of Italy started to boom immediately after the fire. It has never stopped booming. But just a year later another test was to come. Almost as severe. It was worse for many banks and business concerns. This was the "money panic" of 1907, which spread devastation far and wide, but in a manner different from the fire. This panic brought business to a standstill, particularly It. was in many ways the most spectacular panic the United States ever has known. Giannini made trip east early in 1907. He visited New York and the other centers. He sensed "something On his to San convinced his associates the serious financial trouble that was brewing. He issued orders that the bank husban its gold. San Francisco in those days was town that liked "hard" and silver. Currency was not a common medium of exchange. But Giannini started giving out currency at every opportunity quietly and without comment. All the gold that came into the bank and all that could be obtained was stored for the coming emergency Loans were cut down as much possible where injury would not be done business the bank itself. Preparation was the watchword No business calls for greater foresight and for the ability to analyze economic trends. Giannini proved he could do that He had gold in treamount So great did the hoard become bank could not hold it all in its own vaults. The Bank of Italy literally overflowed with gold. and space had to be hired in another bank The like whirlwind New York was the center of the disturbance because interior banks had placed on deposit there more than 300 millions of dollars. They could not get this money back. The hig Trust company of New York failed. Others fol. lowed. Throughout the country banks intimately connected with the closed institutions were in turn volved. There was no money, no gold and no currency to meet day to day needs of customers in many San Francisco among them In many cities no cash or currency whatsoever was available Clearing house certificates became a medium of exchange In San Francisco the customers of most banks were limited in withdrawals to $100 in gold or currency and the balance in these clearing house certificates. But not the Bank of Italy. The Giannini bank had all the yellow metal it needed for its customers. It paid gold throughout the entire period of Naturall customers flocked to the bank in shoals. Not only that, the Bank of Italy had gold to spare and instead of holding more than was needed Giannink turned his reserve above his needs to the bank which had stored his wealth. One peculiarity of the situation was that the new customers for the bank bringing in their deposits often brought all in gold. Like tracting like, something. The Bank of Italy again was "the talk of the town The fire had made timid bankers run to cover. They tightened up on loans. Money hard to get from everyone except Gianinni. He loaned right and left. Unlike many bankers he does not believe the only time to Loan money is when it is not especially needed. And 80 again it was in 1907. Some bankers would not lend at any rate of interest. Gianinni actually advertised for good borrowers. There was no usury. The rates remained the same usual at the Bank of Italy. This attitude saved many business concerns. It likewise added to the strength and prestige of the Bank of Italy. Giannini was fol lowing a practice he believed sound and for the good of both his institution and his might not be following the beaten track of banking but he was backing his own judgment and backing his city and state. The panic of 1907 brought about change in our money system. It finally brought about the federal reserve act designed to prevent just such panics. Giannini believes branch banking will further serve to prevent such a catastrophe. Speculation and widespread inflation caused Railways great industrial concerns had absorbed vast amounts of capital during the boom days of 1906 and 1907 was estimated that $500,000,000 had been but recently borrowed from Europe in addition to the $300,000.000 from country banks, which were in the habit of sending their surplus funds to the big banks of New York where much was put "on call" for speculative stock market loans. The violent speculation which began in 1906 made tremendous calls on the banks. Finally discount rates rose to an abnormally high mark banks showed deficits in reserves: gold was imported and the treasury was forced to increase its deposits in banks. The of financial Institutions were and some kind of a liquidation had to be resorted Country banks started clamor ing for their money and these demands caused stocks to be sold hel ter skelter. Thus the panic was brought about even spread abroad especially in Egypt, Japan and Chile. It no secret now that the 1907 panic showed weakness the banking system of the United States The national banks had been weakened by the growth of trust companies which extended their business into commercial banking. These trust companies comparatively unrestricted by law Their operations went far beyond conservative practice and in particular they did not protect their deposits with adequate reserves. All these things were gauged by Giannini on that fateful eastern trip in early 1907. When the panic struck in October he was ready to meet It. The things he learned at that time, he says today. have caused [CONTINUED ON FICTION PAGE]

4. June 14, 1929 The Sacramento Bee Sacramento, CA
Article from The Sacramento Bee, June 14, 1929

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BRIDGE COMMISSION ALREADY AT WORK HERE Editor The Bee Sir: bad better broken than kept saying that of bad law, pealed." that may be the sooner reWhy do our county supervisors and council hesitate good with the request our the SacraChamber the appointment member proposed bridge our ancient and "boost body" on the alert the right the that right, but give pioneer memorial bridge been hammering away steadily the former State years EngiR. and his able staff, Thomas Stanright in their theory of been confident and still have the good of our boards supervisors, Yolo and our council, the forhighway commission combination counsel admonition. us that our their funds) not in the direction duplicating reconstruction our western bridge entrances Street Street may be wrong, although our bridge steadfastly the princiestablished and the ablest engineers-that through such will provided by our great bridge at Street Again, may "twisted" and all out (not faith) that the chamber bridge commission become reality and have their innings For Pioneer Memorial Bridge Commission 912 Sixth Street, Sacramento, June 13, 1929. WELL, THE BEE ONE FRIEND, ANYWAY. Editor The looking the which read, one from Mr. Whittier who thinks The Sacramento Bee something kitchmystery. He surely pessiAlso, his Mr. before results opinion that Smith have wonderful president. had not been for lot foolish ideas, would have been elected Mr. Hoover something intelligence Whittier for him and straightens out the labor question. been constant reader of The for over being born the State of Califorfifty The SacraBee good clean moral gives all print Mr. Whittier's glad not of his would be out of luck for good paper. long The Bee printed subscriber for and misfortune another letter Mr. MRS. M. HOWARD. Mt. Shasta City, June 1929. BANK PANIC OF 1907 Editor The When did bank panic and start during Roosevelt's O'NEIL Bly, June 10. 1929 The panic started October 1907 the Trust Company failed in York. tically middle December.

5. January 29, 1933 Asheville Citizen-Times Asheville, NC
Article from Asheville Citizen-Times, January 29, 1933

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Scrip Was Used As Medium Of Exchange In Asheville In 1907 Panic SHORT SUPPLY OF MONEY WAS CAUSE OF ISSUE Asheville And Buncombe Issued Paper Money In Year 1862 Depression has brought thinking Asheville people many new about money and trade Scrip. barter. technocracy. "energy dollars' and pet theories that were unknown and dry-as-dust subjects several years azo today figure largely the conversation and thought of the city New ideas? This talk about scrip and barter? "old stuff" according to older residents the history backs up their scrip scarcely more and again back in 1862 until 1875, practically all the mercantile transactions of the city were carried on by barter Since time began man has traded In days when technocrat would have been burnt at the stake broken the rack for his utterances. secured his wants primitive of barter life became more complex, he adopted money as medium of exchange Sometimes this medium of exchange becomes and substitute adopted precisely what in Asheville back November 1907 the last time scrip was used in the There was no business depression back in those days, but currency was "tight" and the plan was adopted to protect and husband the currency local banks situation was confined to Asheville. was prevalent in many sections of the The local state of affairs can better be understood. one knows the national background. Here's the explanation of the economist and historian. 1907 Panic Explained "By 1907, the demand capital had outstripped the available supply. The nation had over speculated and over invested became more cautious and the banks began contract their The action of the Trust company of New York City in closing its doors October 22, to prevent run on the bank, precipitated panic which ruined many of the more speculative ventures and caused the partial suspension of specie payments by the banks. As an extraordinary measure sound banks were allowed resort clearing house loan based on approved certificates to tide them the Because of the stringency of currency in the large cities of the country. out-of-town banks notified local bankers that they would ship currency until business conditions changed. The Federal Reserve system not been organized The panic of 1907 was People

6. March 6, 1933 Pittsburgh Sun-Telegraph Pittsburgh, PA
Article from Pittsburgh Sun-Telegraph, March 6, 1933

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BUSINESS Scrip Solved Problem Of Nation's Last Great Panic GEORGE H. SNYDER PLANS BEING completed today to put house certificates into use with the opening of the banks follow established during the panic of 1907 The adoption this dium of exchange tided the country the period of hyswhich marked the culmination that panic clearing house certificates permitted business on practically normal during period of stress The from use normal banking relationships were restored Several types clearing certificates scrips have been under consideration in rious parts of the country since the closing the New York banks on Saturday precipitated general bank holiday affecting every part of the country. Panie of 1907 Similar To Present Emergency THE 1907 PANIC produced situation which to some extent, parallels the present The troubles that time were but they were preceded by period of exceptional activity The specwas more parent in real estate building projects and ventures than listed stocks The panic by financial which later culminated in the reform of life insurance companies. and forced resignation the officials sevNew York banks. The actual crisis caused run Trust Company. which closed its doors during the first day strain. Runs on banks in all parts of the country followed Hoarding money comand banks found themselves funds meet the demands of their depositors. Scrip to Be Based On Bank Resources THE PROBLEM was solved by issuance of clearing certificates many of the country In New was oversee the of the tificates. The banks wishing certificates their assets If the assets acceptable the committee the certificates were issued and could be used for the settlement of clearing house balances between the banks. Under normal conditions the country transacts its business through of checks. The full amount of cash represented by the checks does change hands. Through clearing houses the banks only settle due Thus, Bank had on Bank for and Bank checks on for $13,000. only actual transfers would be involved. Since the Federal Reserve has been operation even the cash change hands. The transaction would be settled with check the Federal Reby Bank payable to Bank The operation has been reduced at the Federal Reserve, which bank for Cash Supply Is Not Big Enough THE SUPPLY of currency in the country is not great enough permit the transaction business cash basis pay all bank depositors in Thus when normal bank channels become as they did 1907 and they are present by the money by individuals clearing house permit the banks to settle their balances in the usual manner 1907 there was no restriction on the payment of counts with The only restrictions were the withdrawal of actual money The banks did not close their doors and on usual. the New York banks used clearing certificates for settlerment of themselves. at Pittsburgh, New Orleans and points tificates of small were printed be paid out by banks as currency to individual depositors. Certificates Put Into General Use The use of scrip of this type is ancient history Pittsyounger but those employed or managing expenditures time remembe that payrolls were in clearing house tificates for several weeks and that these certificates were generally accepted at the stores. The successful of emergency form of in 1907 has its practicability. While it may not be needed all parts of the try adoption to logical of the general collapse of banking facilities throughout the