Bronx National Bank (New York, NY)

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Episode Information

Episode UID
892601294
Episode Type
Suspension → Reopening
Bank Type
national
Bank ID
89260 national
Charter Number
8926
Start Date
October 26, 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
403cef790f9301a5

Response Measures

None

Description

Articles describe the New York banks' coordinated suspension and later resumption during the 1907 panic; no article names the specific Bronx bank.

Events (4)
1. October 23, 1907 Chartered
Source
historical_nic
2. October 26, 1907 Suspension
Cause
Macro News
Cause Details
Nationwide/Wall Street financial panic of October 1907 led New York banks to suspend cash payments, enforce 30–90 day withdrawal notices and prepare clearing-house certificates
Newspaper Excerpt
All of the savings banks in New York today refused to pay depositors on demand. ... the banks took advantage of the clause in their by-laws which permits them to demand from thirty to ninety days' notice from depositors
Source
newspapers
3. December 26, 1907 Reopening
Newspaper Excerpt
BANK DEPOSITORS RECOVER FROM PANIC (New York. Dec. 26.-Today was the date of the expiration of most of the sixty-day withdrawal notices ... but scarcely a depositor called for his money).
Source
newspapers
4. March 20, 1928 Voluntary Liquidation
Source
historical_nic

Newspaper Articles (14)
1. October 26, 1907 The Washington Times Washington, DC
Article from The Washington Times, October 26, 1907

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Many Send in Written Desires to Withdraw Deposits. Cortelyou Given Credit for Terminating the Money Flurry. NEW YORK, Oct. 26.-All of the savings banks in New York today refused to pay depositors on demand. Under an agreement reached at a meeting of their presidents yesterday, the banks took advantage of the clause in their by-laws which permits them to demand from thirty to ninety days' notice from depositors who wish to draw on their accounts. Notices were posted on all savings banks to this effect today, from the biggest, with deposits of almost $100,000,000, to the smallest, with deposits of only $17,000. The result was felt immediately. At those banks which had experienced runs the lines disappeared, although many filed written notices of their intention to withdraw their deposits at the expiration of the thirty, sixty, or ninety days, according to whichever period the bank adopted.

2. October 30, 1907 The Madison Daily Leader Madison, SD
Article from The Madison Daily Leader, October 30, 1907

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SCARE IS SUBSIDING Runs Upon New York Banks Practically Cease. STOCK MARKET UNSTEADY Calling in of Loans Causes a Decline in Prices, Canadian Pacific Leading in the Slump-Worldwide Scramble for Gold. New York, Oct. 30.-The financial situation is without notable developments. and the abating interest indicates that the public has pretty well gotten over its scare. The stock markets is a little unsteady, but without extreme agitation. The announcement at the ImpeS rial bank of Germany a raised its discount rate from 5 1/2 to 6 1/2 per cent in order to protect its gold holdings was not unexpected by bankers here. It is thought quite likely that the Bank of England will follow suit by raising its rate at the regular meeting on Thursday. The scramble for gold is such at all the financial centersLondon, Paris, Berlin and New York -that the metel will go to the highest bidder and under present conditions New York is likely to appear for a time in this role. Her ability to get gold is due not only to the need for it, but to the large credits which are being established by the movement of the crops and other products-notably wheat, cotton, copper, tobacco and meats-and by the sale of American securities. These influences are usually more potent than artificial measures to obtain the yellow metal. It is believed this will be effective to place sufficient gold at the command of the New York market and to maintain credit and cause the resumption of banking operations in the usual manner within a few days. Runs upon the banks here have practically ceased since the banks adopted the policy of paying large depositors in checks. Some transfers of accounts are being made from the smaller to the larger banks, which resulted in adverse balances against the former, but strengthening the ability of the larger institutions to meet pressure and to support the market.

3. October 31, 1907 Jamestown Weekly Alert Jamestown, ND
Article from Jamestown Weekly Alert, October 31, 1907

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A Sensible Arrangement-As will be seen by a statement of the officers of the Jamestown banks, precautionary measures were adopted Tuesday to prevent an unnecessary withdrawal of currency from the banks. This action was deemed necesasry on account of financial *troubles in New York, that have created a temporary scarcity of currency and gold, for the usual necessities of business. This is not due to local conditions of any kind. The Jamestown banks were never in a more flourishing condition, and their solvency is beyond any question. The trouble seems to be with the immense amount of business to be transacted, especially in the northwest at his special time of the year. and the difficulty of securing the necessary currency from the east to move the crop. The New York and Chicago banks have declined to ship currency or balances due to the western banks and it is necessary that the banks of the northwest take the same steps that the Chicago and New York banks have taken, in withholding currency withdrawals of the"present. The plan established by the banks will not greatly inconvenience depositors. Any one who has a checking account at any of the banks can pay store bills or any other bills by check or draft just the same as in currency. Ans debt to be paid outside of the city, may be paid_in"the same*way. The action taken_by the banks is an unusual one, but is the only safe. sensible and business-like way, in dealing with an: emergency, the cause of which has no relation to any local conditions, but exists outside of Jamestown, and the state of North Dakota, and which orginated in New York City, where the banks have been compelled to refuse to ship 'currency to the west for moving crops and for other necessities. Currency will be paid out, but in small amounts, and the certificates of the various banks will be substituted for currency where payments are desired in large amounts These certificates are guaranteed by the banks and securities of double the amount have been deposited with the trus. tee, Alfred Steel, as a guarantee that the certificates will be redeemed. There is no Fcause or any reason for any alarm and it is believed that these unusual conditions of a currency shortage will be removed within a short time. Every sensible, reasonable person will understand that the interests of the general community are vastly superior to that of a few individuals, and that by this united action on the part of the banks, the absolute safety of depositors interests is thus secured and business not interfered with.

4. December 3, 1907 The Roswell Daily Record Roswell, NM
Article from The Roswell Daily Record, December 3, 1907

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"The current number of Harper's Weekly contains an editorial 'roast' of the clearing house certificates issued in Las Vegas, New Mexico. In view of the fact that the financial difficulties of the West were wholly due to the suspension of payment by the New York banks, and the issue by these banks of clearing house certificates and other forms of 'Johnsmith' currency—as it is now called—it would seem that the Weekly might have found a target for its ammunition nearer home.—Socorro Chieftain.

5. December 3, 1907 Deseret Evening News Salt Lake City, UT
Article from Deseret Evening News, December 3, 1907

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# RESUMPTION. Horace Greely was wont to say that "the way to resume is to resume." The New York banks have been announcing for some time that specie payments are about to be resumed. It appears that the bankers elsewhere are ready to pay cash as soon as New York decides to keep its promises. It is noted as one peculiar feature of the present panic that some of the New York bankers will become rich because of it. And we doubt not that the most immediate cause of the suspension of cash payment by the banks all over the country was the stoppage of such payments by the banks in New York. As long as the banks of that city continue to withhold payment of their obligations, there seems to be no reason why they might not be purchasing the government bonds and so making a profit out of withholding cash payments to the rest of the country. Such a suggestion is made in many quarters, and the way to negative any such suspicion is for the New York banks to pay their obligations inland in the current money of the realm.

6. December 27, 1907 Albuquerque Morning Journal Albuquerque, NM
Article from Albuquerque Morning Journal, December 27, 1907

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BANK DEPOSITORS RECOVER FROM PANIC (New York. Dec. 26.-Today was the date of the expiration of most of the sixty-day withdrawal notices re. quired by the savings banks at the height of the paniè in October, but searcely a depositor called for his money

7. February 7, 1908 The Times Dispatch Richmond, VA
Article from The Times Dispatch, February 7, 1908

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City were increased on the security of stock and bond loans from $281,000,000 to $302,000,000. Three hundred and twelve millions loaned on collateral of Wall Street, and yet they suspended payments to their individual depositors and to their banking correspondents throughout the country. And they did it when they had money in their treasury with which to meet their obliga-tions." ### Kept Cash; Got Premium. Mr. Culberson declared that while New York had so much cash in its banks Southern banks were paying a premium for cash. The Aldrich bill, he declared, would give the banks more power and would foster stock and bond speculation by the banks and still further discriminate against the general public, and in the interest of the bondholding classes. "Against this policy," he added, "I want to enter my earnest and emphatic protest." Senator Hopkins replied briefly to Mr. Culberson. "Every statement made by the Senator," he said, "has been answered by the Secretary of the Treasury in his report." Mr. Culberson said the secretary refused to give the Texas banks deposits they asked for, and Mr. Hopkins replied that he had done the same thing in respect to Chicago banks, as he put the money where he believed the greatest emergency existed. The consideration of Mr. Culberson's resolution was postponed, and it was allowed to lie on the table.

8. March 12, 1908 The Birmingham Age-Herald Birmingham, AL
Article from The Birmingham Age-Herald, March 12, 1908

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FINANCIAL BILL HOTLY DENOUNCED Senator Clarke of Arkansas Hits Several Fierce Blows ALDRICH ATTEMPTS REPLY Investigation of Causes of the Panic Is Demanded by Senator Clarke, Who Also Denounces New York Stock Exchange. Washington, March 11.-Senator Clarke of Arkansas denounced the pending currency bill in a speech in the Senate today, declaring that no currency legislation should be enacted until an investigation is held as to the causes of the panic. "No such legislation is necessary now, said Mr. Clarke. "It is not only not necesI sary, but it may become dangerous. am not disposed to tolerate the idea of giving any support to the committee bill, nor the substitute proposed by the minority members of the Senate." If emergency currency is to be provided, Mr. Clarke said, the benefits should be extended all persons whose legitimate business demands cause them to need it. Mr. Clarke denounced the operations of stock exchanges and said the American people would not be satisfied with the proposed currency legislation without a complete knowledge of causes of the panic. "The time has arrived," he said, "when the affairs of the New .York stock exchange and other stock exchanges must be looked into." Mr. Clarke's reference to the stoppage of the payments by the New York banks called Mr. Aldrich to his feet with the remark that he did not believe the people would permit that course again to be pursued. "I trust the senator from Rhode Island as a historian," retorted Mr. Clarke, "but I do not trust him as a prophet." Mr. Clarke expressed the opinion that the majority would not pass the bill allowing the emergency circulation to be retired without limitation. Mr. Clarke said he would not only require a restriction of reserves, but he would deny to a national bank the right to pay interest on checking accounts. Senator Nelson suggested that the national banks should pay interest on the $250,000,000 of government deposits. Mr. Aldrich said that five years ago he had introduced a bill providing for the payment of interest on such deposits at the rate of 1 1/2 per cent, but, he added, senators had opposed that bill on the ground that it changed the nature of the loan. Former Senator Spooner and the late Senator Morgan, he said, opposed the bill. If that objection could be overcome he declared his willingness to again bring in such a measure. He did not know any reason unless it should be a legal one, of the kind suggested, why interest should not be charged on these deposits. Mr. Culberson, he said, had introduced a bill to require payment of interest on government deposits and it was now before the committee on finance. Mr. Bailey spoke at some length suggesting that the main purpose of his substitute was to favor the principle of government money instead of bank money He explained that he had provided for a distribution of the emergency currency in accordance with population, although he realized that business necessity was a greater measure of the amount they should have. But it was not possible to make sure of the business needs of the several sections and it was a simple matter to ascertain the population. An extended argument was made by Mr. Newlands of Nevada in favor of his view that the sending of a check from one state to another makes the business of banking interstate commerce.

9. October 19, 1909 Rock Island Argus Rock Island, IL
Article from Rock Island Argus, October 19, 1909

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CENTRAL BANK EXPERIMENT ONCE WRECKED THE NATION'S CREDIT 100 New York firms went to the wall distant place to earn dividends for the BY TAV. stockholders. in one month. Every bank in the city (Special Correspondence of The Argus.) suspended. Congress was forced to The year 1791 marked the first bank Washington, Oct. 16.-That the of the United States. In that year pass an act forbidding the PennsylvaUnited States has had two unsuccessnia bank of the United States from congress chartered a bank for 20 years. ful experiences at running banks, and Its methods brought about, 18 years using the notes of the United States should therefore act slowly in considbank. Then the New York banks relater, the first bank panic in this counering Wall street's central government try. Bribery and corruption in politisumed business. But the reckless opcal affairs were the dominant features erations of the financiers who owned bank idea, will be urged by the small bankers of the country, who are anof the government's first experience in the United States bank brought on distagonistic to the program Senator Aldbanking. aster. Oct. 19, 1839, it failed, carrying In 1817 a second United States bank to ruin 343 of the 850 banks in the rich has promised to promote in a came into existence. Within a short series of speeches in the west upon union and causing 62 to suspend for a time it had 18 branches. In Novemhis return from Europe. time. Its debt to the Bank of England Attention will also be directed to the ber, 1818, it was insolvent. Forty conalone was $23,000,000, and the failure, fact that the greatest obstacle in Cangressmen who held stock in the insticoupled with the consequent repudiaada's struggle to develop has been her tion of indebtedness by several states, tution, however, enabled it to continue antiquated system of big central banks in business. For the following five destroyed American credit abroad. with branches in every country town, years there was keen financial disIn spite of the assurance given in inthrough which all surplus deposits are tress throughout the country. spired articles sent out from Washcentralized in the large cities. Vetoed Renewal of Charter. ington, that politics will play no part Pinches Small Banker. In 1823 President Jackson vetoed a in a central government bank, the The Canadian merchant or manufacrenewal of the bank's charter, the small bankers are apprehensive lest turer in the outlying town has been the contrary prevail. They can hardly bank retaliating with coercive measunable to secure bank accommodations ures. It contracted the money market conceive that it would be in keeping needed in his business, while idle and caused great distress. Other banks with the game of politics for any parmoney from his own town, which a losprang up. The United States bank ty to set up an institution such as a cally owned bank would gladly have continued operations under a charter government bank without manning it loaned him, has been sent to the head obtained by bribery from the state of with politicians, as only by taking adoffices of the big city bank with a local Pennsylvania, reissuing all its old vantage of such opportunities are great branch, perhaps to be invested in a far notes. The crash came in 1837, when political machines built up.

10. November 29, 1909 The Roswell Daily Record Roswell, NM
Article from The Roswell Daily Record, November 29, 1909

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U. S. BANK A FAILURE Washington, Nov. 29.-That the United States has had two unsuccessful experiences at running banks, and should, therefore, act slowly in considering Wall Street's central government bank idea, is being urged by the small bankers of the country, who are avowedly antagonistic to the program of Senator Aldrich. The country bankers are directing attention to the fact that the greatest obstacle in Canada's struggle to develop has been her antiquated systerm of big central banks with branches in every country town, through which all surplus deposits are centralized in the large citires. The Canadian merchant or manufacturer in the outlying town has been unable to secure bank accomodations needed in his business, while idle money from his own town, which a locally owned bank would gladly have loaned him, has been sent to the head offices of the big city bank with a local branch, perhaps to be invested in a far distant place to earn dividends for the stockholders. The year 1791 marked the first bank of the United States. In that year Congress chartered a bank for 20 years. Its methods brought about, 18 years later, the first bank panic in this country. Bribery and corruption in political affairs were the domi nant features of the government's first experience in banking. In 1817 a second United States bank came into existence. Within a short time it had 18 branches. In No. vember, 1818, it was insolvent. Forty Congressmen who held stock in the institution, however, enabled it to continue business. For the following five years there was keen financial distress throughout the country. In 1832 President Jackson vetoed a renewal of the bank's charter, the bank retaliating with coercive measures. I: contracted the money markets and caused great distress. Other banks sprung up. The United States bank continued operations under a charter obtained by bribery from the state of Pennsylvania, reissuing all of its old notes. The crash came in 1837, when 100 New York firms went to the wall in one month. Every bank in the city suspended. Congress was forced to pass an act forbidding the Pennsylvania Bank of the United States from using the notes of the old United States bank. Then the New York banks resumed business. But the reckless operations of the financiers who owned the United States bank brought on disaster. Oct. 19, 1839. it failed, carrying to ruin 343 of the 850 banks in the Union and causing sixty-two to suspend for a time. Its debt to the bank of England alone was $23,000,000, and the failure, coupled with the consequent ren pudiation of indebtedness by several states, destroyed American credit abroad. In spite of the assurance given by Senator Aldrich in his speeches in the west, that politics will play no 1 part in a central government bank, the small bankers are apprehensive [ lest the contrary prevail. They can hardly conceive that it would be in I keeping with the game of politics for any party to set up an institution such as a great government bank without manning it with politicians, as only by taking advantage of such opportunities are great political machines built up. :

11. December 9, 1913 New-York Tribune New York, NY
Article from New-York Tribune, December 9, 1913

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# Senator Weeks Enters Lists. Senator O'Gorman said that the New York banks had lent to the country banks more than $410,000,000. Mr. Swanson insisted that the condition was exactly the reverse. Senator Weeks then called attention to the law which required that the New York banks keep 25 per cent of their reserves in their vaults, asserting that they had fallen below this limit when they suspended payments. Senator Root then took a hand in the discussion and elicited from Senator Swanson the admission that the country banks deposited their money with New York reserve agents with the understanding that it was to be loaned on call. "They knew," he said, "when the money was loaned that if there came a sudden demand from all parts of the country they would be subject to the difficulties and embarrassments arising from a defective system." For this reason, Senator Root intimated, there was no occasion whatever to blame the New York bankers for lending the money as they did. Senator O'Gorman quoted from the testimony given by country bankers before the Banking and Currency Committee to show that they had received more aid

12. August 3, 1914 New Britain Herald New Britain, CT
Article from New Britain Herald, August 3, 1914

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WILL ISSUE CLEARING HOUSE CERTIFICATES Bankers Believe Country's Gold Supply Should Be Protected. New York, Aug. 3.-The clearing to at a meeting today decided `house clearing house certificates to meet issue the currency situation brought about by the European war crsis. The decision to issue certificates was of reached after a general discussion foreign situation and its bearing the the business conditions here. It was the unanimous on opinion that in view should of foreign situation every means adopted to protect the country's therebe It was voted, gold supply. that for the present and until itfurther fore notice the association place self upon a certificate basis. Additional Resolution Adopted. additional resolution was adopt- of An making available in payment issued ed all forms of currency on balances authority of the national government. This indicates the desire by the bankers to use freely the currency isthe national currency associa- rethe fullest extent for and sued tion to to correspondents the quirements of their the needs of interior exchange. Largely Meeting Attended. meeting was largely attended, bankpractically The all of the sixty-one ers and trust companies being represented. This is the first emergency measure the taken by the association since panic of 1907 when similar action was taken. Secretary McAdoo of the treasury department, who came from Washinglast night to attend a conference the with ton New York bankers, left for capital at 9:30 'clock today to attend meeting this afternoon with finan- Kela various cities. John H. Williams, comptroller ton ciers from of W. the P.G. currency; Charles S. Hamlin and members of the federal rewho came from serve Harding. board, remained Washing- here ton with Mr. McAdoo, subin conference at the during the and treasury were morning. Mr. Williams has made preparations 5 to forward the emergency bank notes to the various :banks as soon as they arrive. Sixty Day Clause. Decision to enforce the sixty day clause before withdrawal of deposits today by members of the York State Savings New was reached Bank the state association. All savings banks in are affected. Withdrawal at the private banks on the east side, the bulk of whose depositors are foreigners, have been heavy this forenoon, but there has in TT 00.00 been disorder Between $40,000,000 and $50,000,000 ofemergency,currency,arivedin New York today. from Washington and was taken at once to the subtreasury. This announcement was made at the sub-treasury after the secretary of the treasury had started back to Washington. ₹ Brokers Reconcile Themselves. Stock exchange brokers reconciled themselves today to the probability of a prolonged suspension of the market here. W. G. Van Antwerp, a member of the board of governors. said he believed it probable the exchange would remain closed while the European war was on. Although immediate resumption of business is not expected. brokers have to by dismissing chinery hesitated disorganize employes their ma- and off private wires, for in case sudden re-opening cutting of a of the exchange they would be unable to transbusiness. Most of the contracts the priact with telegraph companies for permitvate wires contain a clause the lessees to discontinue the on days' service ting thirty notice. Such of notice was given today by several the wire houses, with the expectation that should trading be resumed in the meantime the wire would be reengaged. Situation More Acute. The general situation has been made more acute by the poor business which Wall Street experienced for many months. More than one house in the street, according to general opinion, has not made expenses for the last year or more. "But there won't be a stock exchange broker,' said Mr. Van Antwerp, "who will whimper. They will give New York an exhibition of their fine spirit.' Special Committee Meets. The special committee of five met it was today, brokers and appointed said last week, would continue early in session each day during the time that the exchange is closed. This committee will attend to the settlement of such points as may require adjustment, acting as representatives of the stock exchange firms. The Wall Street army of salaried employes was particularly anxious for the future. In the New York Stock Exchange Employes' association there are 9,800 enrolled members, which a represents only fraction of the nummen or upon the of directly ber exchanges of indirectly, whose this city. livelihood So depends, far various dis- as could be learned, no wholesale missals of clerks and other employes

13. August 3, 1914 The Times Dispatch Richmond, VA
Article from The Times Dispatch, August 3, 1914

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liams. Comptroller of the Currency 'd шаша pur чушен 'S Charles Harding, members of the Federal serve Board. Until far into the they discussed relief measures with group of leading bankers. The New York Clearing House mittee to-day called a méeting of Clearing-House Association. to be before banking hours to-morrow, Issuance ] Joj certificates Banks of New York and other cities completed arrangements to out many millions of dollars of gency currency to-morrow. Recommendations were made that savings banks and the private of this State enforce the clause. empowering them to decline pay out money within that period depositors. The New York State Savings Association will meet before bankin hours to-morrow. and it was stood to-night that the clause would go into effect. Many of New York's foremos financiers attended to-night's ence. They included J. Pierpont can and his partner, Henry P. Davisor Frank A. Vanderlip. president of National City Bank. and A. Hepburn. chairman of the Chase tional Bank. The recommendation to be made the clearing-house committee to the sociation to issue clearing-house tificates was regarded here to-night virtually certain of adoption. Thes certificates, while not legal currency were accepted during the panic of by the banks in settlement of transac 111 pue 1 Buown citles were circulated In lieu of tender. New York bankers were emphatic their statements that there need be fear of disastrous developments. am JO banks ey: 10 position cpunj SEM 'ples SEM 11 B SE mentally strong. Bankers were in conference through out the day. During the morning wires to Washington were kept in almost constantly, and after the dent and Mr. McAdoo had been formed of the views of the New bankers it was decided that the am demand 01 SU yons SUM non ence of the Washington officials at financial centre. Before they left capital a special telegraph wire installed in the subtreasury with direc connections with the Treasury Depart ment. 10 meeting E same *he 1V executive committee of the Nation: Currency Commission and the Clearin House Committee was in session. anssi 01 [esodord tificates met with opposition both the ground that it was unnecessary for the reason that It might alarm. The opponents to the plan won over, however, when news of the commencement of hostilities Germany, France and Russia. Bankers considered It highly probable that the outpouring of to Europe would continue if for other reason than It would be almos AUB 11 diys 01 ] of safety. Insurance rates last were almost,prohibitive, and it was sumed that the insurance companie would refuse to take on further under present conditions UNSER LXHKGLVLS BY SECRETARY MeADO The conference between the Wash ington officials and the bankers in session until midnight. At its Secretary McAdoo said: "Arrangements were perfected issuance by New York banks of 31 eddition JO 000'000 quired, to enable them to respond calls of correspondent banks for to meet the demands for crop ment. I intend to permit the Issuan of similar currency to banks in sections of the country upon their plication to the Treasury Departme and their compliance with the visions of the act.' The secretary prefaced his stateme MeN 01 come pay ay Supies sq for"a conference with the leading ers about the issuance of emergeno currency, and for a discussion of measures for protection of the Widdns p[o.3 S,A,11 He added that the country was splendid shape, and that with precautions It should be possible overcome the difficulties of the struction que The present financial situation, was explained here to-day by banker was brought about by a number causes. For months business has backward and capital timid. The came the spectre of the European 01 SUM effect esoym financial markets of Europe, resultin in the suspension of the world's ing stock exchanges. including the York exchange. An important cause of disturbance here was Europe enormous demand for American Last week these exports were well to $50,000,000. The probability e uş P[40M PIO and 411M would be a severe reaction upon merce and industry here. as well as troubled state of public sentimen made the outlook still worse.

14. August 7, 1914 Evening Star Washington, DC
Article from Evening Star, August 7, 1914

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be prevented, or, at least, its effects minimized can by the proper organization sysand control of a country's banking tem. No such premium upon money or taken such collapse of credit has of in of the leading that the last 100 years as Noplace general Europe during any States countries in in the United in December of 1907, war and social witnessed vember periods and of condition revolution. except of similar disastrous for a and credits in England one must Namoney back to the time of the wars of go while in Germany no such foun- ocpoleon, has taken place since the shown currence of the empire. France has the dation such a banking condition but once that in was several generations, and last defeat at the hands of Prussia, war after her payment of her billion-dollar troubles. indemity the and bitter internal There have been suspensions of banks and great failures of business and banking houses in Failures Abroad Not these countries just the same as as Heavy as Here. in the United States, yet these disasters have not (as so offen has been the case here) been alIowed to paralyze the credit of the country. In Great Britain, the powerful firm of Overend Gurney failed in 1866, the Bank of Glasgow in 1878 and the house of Baring Bros. in 1890. Yet, on each occasion, the trouble was confined and no national financial convulsion followed. In France the same ability to avert financial panic was shown upon the failof such great banking institutions as ure the Union Generale in 1882 and the Comptoir d' Escompte in 1899; while in Germany the failure of the famous Leipziger Bank in 1901 is another example. in the United States, the suspension of Yet, payments by the New York banks has been followed by distress from Maine to California. Although banking reform had been demanded for a number of years, it took the panic of 1907 to insure a thorough prosecution of the task. Minor changes in our banking laws had been made from time to time, but the great prosperity of the country caused Congress to shrink from the responsibility of undertaking extensive reconstruction of the laws to under any which business had attained such mighty proportions. * * In 1000 Congress pased a currency act for the better support of the greenbacks, the Treasury notes of 1890 Better Support of and the silver Greenbacks by Law. dollars. After the panic of 1007 the Aldrich-Vreeland act was promulgated, which provided that the national banks might organize themselves into national currency assoclations, and that a member bank, with outstanding note circulation secured by States bonds equal to 40 per cent of might extend its United its capital, note issues upon other classes of securities until the total was equal to the sum of its capital and surplus. This act was intended only to be an emergency measure, and was enacted to expire by limitation June 30, 1914. The provision for increasing their note issue up to the present has not been taken advantage of by the banks The act has been extended to June 30. 1915. Further, following the panic, the national monetary commission was established, for the purpose of investigating means for improving credit arrangements in this country. Members of this commission visited England, France and Germany, and made thorough studies of the banking systems in vogue in these coun- of tries. The banking arrangements Canada, Scotland, Belgium, Sweden. Switzerland, Italy, Russia, Mexico and Japan were also investigated. The findings of the commission were published in reforty volumes, which form a good view of the world's banking business. Out of these studies grew proposals for the establishment of a National Reserve Association, a representative association the banks, the units of which were of to all be the clearing house associations which the banks of each city now mainThe democratic Congress rejected this tain. plan in favor of the federal reserve whose provisions, wisely enforced. act, will probably be found better suited to needs of the country than would have been the any one among the numberless plans which have been proposed.