FINANCIAL CRISIS.

Taranaki Daily News, Volume L, Issue 61, 10 December 1907, Page 4

FINANCIAL CRISIS.

HOW TIIE MAGNATES LABOURED. i'iles by the K.M.S., Ortoua show the great tllurtft made by tlie American li-uam-ui! magnates to atop the luianciai panic, wuii iluctuating temporary »uc-

liie suspension of the Knickerbocker Trust of .sew lurk alter a sharp run shook cunlidciice, which was waveriugly restored by the action of the Secretary to the Treasury (.Mr. U. B. Cortelyou) in distributing £5,000,01)0 jincug the banks, on the best security, jii. ■>. V. Morgans pool to assist docks ou nail street also having a good elicit. 'i'hue hundred Knickerbocker depositors rubied the bank after the second president had announced its suspension vn the ground that it could not obtain specie, nut was solvent, and would prooably riMtuie next day. The police cleared the place. the failure of Mayer and Co., stockDrokers, f ur £1,200,000 gave another shock, and Mr. Cortelyou distributed £1,25(1,000 among the N'ew York Xational Hanks, which he announced were in an a*ured position. He declared that the government Treasury would assist legitimate business interests in every proper way.

The run on the Trust Co. of America followed next day. Railway and other stork- fell sharply, but a slight rally followed Government deposits in" the banks.

■Pittsburg Stock Exchange closed next, and a receiver was appointed for the Wentinghouse Electric Co. Mr. J. D. Rockfeller declared on Oc-

tober 23 that the alarm was unwarranted. Instead of withdrawing money from the bank, he was co-operating to assist. Mr. J. Pierpont Morgan allirmed that there was no cause for alarm, and that the position was all right. He deposited £2,000,000 with the Union Trust Co. Messrs. Harriman, Ryan, Oakleigh, Thome, and other financial magnates held a conference in Mr. Morgan's oflice in New York.

The "Times" correspondent telegraphed from Chicago, October 24, that the opinion of the entire west was that the New York-Pittsburg troubles wore entirely local, and would be readily brought under control by the great conservative banks of the east with the prompt assistance of the Secretary of the Treasury (Mr. Cortelyou), and the entire country is, the "Times" correspondent adds, "enjoying unexampled prosperity; business is good, farmers, with plenty of money, trads is brisk* manufacturers are busy, but lack confidence in industrial and financial pilots who brought disaster." President Roosevelt was attacked by opponents, who characterised his policy towards the trusts as rejecting the Courts and going to the "stump" for legal justice. Mr. Dawes, President of the Chicago Central Trust Co., declared that President Roosevelt's policy was pointing to a hole inside a walk, and declaring that the whole town would fall through it. Mr. J. W. Bryan advocated Federal

license for corporations seeking control of one-fourth of the total output of any commodity, no corporation to he allowed to handle more than 50 per cent. of the business it engaged in. po|dmi'xaun °uiAi>tv>., '.-ppv. ;u?;raoil»