Rensselaer Semi-Weekly Republican, Volume 40, Number 16, Rensselaer, Jasper County, 1 November 1907 — GOTHAM BANK CLOSES [ARTICLE]

GOTHAM BANK CLOSES

BIG KNICKERBOCKER TRUBT COMPANY IN TROUBLE. After Run Exhausts $8,000,000 Reserve, Directors Order Doors Falls for $6,000,000. During a day bordering on widespread financial panic, New York Tuesday witnessed the suspension of the Knickerbocker Trust Company, the second largest in the country, with deposits aggregating more than $62,000,000; the failure of the stock brokerage firm of Mayer k Co., wheat liabilities are estimated at $6,000,000, and the serious embarrassment of six banks and another trust company. The resignation of Charles T. Barney, president of the Knickerbocker Trust Company, precipitated a run on the four branches of the bank in the morning. The directors announced that they had plenty of money to meet all depositors, but the rush grew so heavy that at noon, after a conference, It was decided to close the barfk temporarily. 7" 7 The day’s events included the suspension ternpbrarlly7 and possibly for some time, of the Knickerbocker .Trust Company, a concern with $63,000,000 of deposits; frantic selling at pamic prices of shares on the stock exchange; the rise of call money to 70 per cent; a $6,000)000 brokerage failure; and the circulation of sinister rumors -as to the standing of men and banks whose credit has;- ; htther4o-. been--"anftssaiiedj Credit, the bulwark and support of all business, was shaken to its foundation, and the general banking situation became so grave that the Federal government was farced to act. The entire financial machinery of the government was set to work to prevent widespreading financial trouble. Immediately after the suspension of the Knickerbocker Trust, William Turnbull, fourth vice president of the company, issued for publication a scathing statement in which tye accused a man, supposed to be President Roosevelt, of indirectly causing {»a crash ■by destroying the confidence of the people in the credit system. President Roosevelt, In a speech at Nashville, Tenn., denied responsibility for recent financial developments and He defined his policy ae an effort to punish successful dishonesty, and, declared that for the remaining sixteen months of his tenn this policy shall he persevered in unswervingly.