LATE MONEY CRISIS. PANIC IN AMERICA.

Evening Post, Volume LXXIV, Issue 136, 5 December 1907, Page 8

LATE MONEY CRISIS. PANIC IN AMERICA.

CROWDS BESIEGE BANKS. : ' EXCITING SCENES. Under date of Ist November, the London correspondent of tho Argus wrote :— The failure of the brother's Ho'inze to corner the United Copper shares has precipitated a banking, crisis of quite unexpected severity in New Yoik. The drastic action of the Clearinghousa • Committee in forcing the resignations of four presidents of the National Banks, because- they had been Concerned in the copper deal; created a feeling .of hysteria in the public mind, which was further excited by President Roosevelt's avowal of his determination to continue his efforts to punish successful dishonesty, even if the immediate effect .of that policy were to be partly productive of a, slump in tho stock market. The trouble' began with the Mercantile) National Bank, " which is closely connected with Heinze's. Matters grew more- serious when the affairs of the Knickerbocker .Trust Company, a much moro important concern, became . involved. The Knickerbocker Trust held many millions . sterling on deposit. ' On 22nd October a persistent run commenced upon all its branches. After paying nearly two millions over its counters in the course of three hours, the trust exhausted its immediate re-serves-in, cash, and was compelled to suspend payment. - WILD SCENES. Wild, exciting, and tumultuous scenes attended the closing „of the Knickerbocker Trust's doors. The trust early prepared to meet the emergency by rushing thousands of dollars . through the streets to its branches in motor cars, milk waggons, and gas company 'trucks. Ono truck collided with a heai-sc,, and was overturned, spilling many bundles of notes. Directly the doors opened crowds of excited depositors, of both sexes, -tried -to \rush the establishment, fashionablo ladies struggling with the poorer classes. " Many men withdrew thousands of pounds, leaving the bank with huge piles of notes tucked under their waistcoats. One lady recovered £8000 and a man drew out £5400. Numbers promptly deposited their money. in another bank across the street. Others placed it in' public safes, oi\ iook it home. Some were robbed " by thieves before they could cross the street. One Wall-street financier grimly remarked, "It's a bully time tor -thieves and safebreakers." When the suspension occurred, women sobbed hysterically, and men howled in unison, "-Give us bank our dough." Mr. •Turnbull, the vicepresident of the Knickerbocker Trust, bitterly assailed President Roosevelt, declaring that his speeches caused all the trouble by creating public distrust in financial institutions. Next morning threatening and angry, crowds awaited the opening of the doors, and when it was announced that they remained closed, there wore howls of execration. At the main office, opposite- the WaldorfAstoria Hotel, ladies of . fashion stood in a queue beside black butlers and footmen in livery, all eager to save their deposits. Many ladies remained cheerful under their - disappointment. "I have . not • a .cent. ' left," observed • one. "But never mind. Let's go shopping," and, springing into, a motor-car, she whirled away. • AN- ALL-NIGHT VIGIL. The"iun" on. the Knickerbocker Trust ■was promptly transferred >to another first-class institution, the. Trust Company of America,, usually considered a, wellgoverned, conservative concern, with deposits aggregating 50,000.000 dollars. Ithad .nearly £3,000,000. in 'cash in its coffers, and was promised and received the united • assistance 'of tho Clearinghouse and the banks. All day on Wednesday hundreds stood in line waiting to reach the paying tellers,' and even at the end of the^day the line stretched two blocks down, the street. .During the.day over 5,000,000 dollars v;e:o paid out. The run continued on tho following -day, but the company- still ' hoped to weather the stoTm. Hundreds of determined depositors maintained 'an all-night ■ vigil in front of .the main office,' huddled together in 'the "shivering, icy wind, but afraid' to leave. -the queue. One depositor camped all night in a hansom with his ' wifo, mother, two children, and a. bag of provisions. He" was the first to reach -the counter next day, and met his reward. Others placed camp stools oh the pavement, while -negroes sold hot coffee, to the miserable throng at the 'rate of lOd a cup. When the doors were opened the cashier's counter made a. spectacular display of wealth.- A double^ row of clerks were ready to pay depositors with huge piles of notes and cash. The president of the. company shouted .to the depositors, "Take your time ; we are going to pay' you all.' 1 But public confidence had become demoralised. Other institutions were soon attacked. Several smaller banks, against whose management and stability nothing could be justly said, were victimised by the suspicion ' attaching to the more pretentious houses. The Dollar Bank was besieged by 1500 excited Italians, 'Swedes, Poles, and Germans. Most of the crowd had been waiting since daylight, and not a few had arrived before it was light. They were fairly quiet until near opening time, <md then began fighting for" places nearest to the entrance. Many in the swarm were women with' infants in their arms, and some babies were lost in the confusion. When the door opened a great rush commenced, and cursing and' fighting marked the frantic endeavour of the excited foreigners to collect their money. Everybody was paid by the afternoon. Cases of depositors '. being robbed by street- thieves were reported. The' Night and Day Bank stated that a messenger they employed to cash «k cheque for £1300 at the Knickerbocker Company" got the money and never returned. Before leaving he wrote a facetious letter home, saying, "Things look so depressed, in New York that I'm goiug to talse to the woods.'' A STRANGE SIGHT. Another institution attacked was the Bowery Savings Bank, an establishment as sound as the Bank of England. The sight was a strange one. Lined up oulsidtf the building were some fifty Greeks, Italians, and Armenians. All had the implements of their trade with them. The' Greeks carried trays of hot peanuts, the Italians bunches of bananas ; tho Armenians, who aro generally bootblacks, their paste-boxes and brushes. All wanted their savings. The interior of the bank was stuffy -with, malodorous fumes. Since nothing is more confagious than a money panic, public distrust hourly increased, though happily it was still chiefly confined to New York. On 23rd October panic-stricken crowds were fteen in all the financial districts, while near Wall-street it was impossible to move, though a big force of police was on duty. Newspapers issued panic editions, which intensified the conditions. Some people sold places in a street queue fur as much as £100. Messenger boys keeping places earned small fortunes. Meanwhile Mr. Cortelyou, Secretary to the Treasury, and the great financiers and bankers did their best to concert measures to reestablish confidence and allay the ganic.