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The Panic of 1907, also known as the 1907 Bankers' Panic or Knickerbocker Crisis, was a
financial crisis A financial crisis is any of a broad variety of situations in which some financial assets suddenly lose a large part of their nominal value. In the 19th and early 20th centuries, many financial crises were associated with banking panics, and man ...
that took place in the United States over a three-week period starting in mid-October, when the
New York Stock Exchange The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District of Lower Manhattan in New York City. It is by far the world's largest stock exchange by market capitalization of its listed ...
fell almost 50% from its peak the previous year. The panic occurred during a time of economic
recession In economics, a recession is a business cycle contraction when there is a general decline in economic activity. Recessions generally occur when there is a widespread drop in spending (an adverse demand shock). This may be triggered by various ...
, and there were numerous runs on banks and on
trust companies A trust company is a corporation that acts as a fiduciary, trustee or agent of trusts and agencies. A professional trust company may be independently owned or owned by, for example, a bank or a law firm, and which specializes in being a trust ...
. The 1907 panic eventually spread throughout the nation when many state and local banks and businesses entered
bankruptcy Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor ...
. The primary causes of the run included a retraction of
market liquidity In business, economics or investment, market liquidity is a market's feature whereby an individual or firm can quickly purchase or sell an asset without causing a drastic change in the asset's price. Liquidity involves the trade-off between the ...
by a number of New York City banks and a loss of confidence among
depositor A deposit account is a bank account maintained by a financial institution in which a customer can deposit and withdraw money. Deposit accounts can be savings accounts, current accounts or any of several other types of accounts explained below. ...
s, exacerbated by unregulated
side bet Side or Sides may refer to: Geometry * Edge (geometry) of a polygon (two-dimensional shape) * Face (geometry) of a polyhedron (three-dimensional shape) Places * Side (Ainis), a town of Ainis, ancient Thessaly, Greece * Side (Caria), a town of ...
s at bucket shops. The panic was triggered by the failed attempt in October 1907 to corner the market on stock of the
United Copper Company The United Copper Company was a short-lived United States copper mining business in the early 20th century that played a pivotal role in the Panic of 1907. United Copper was incorporated in 1902 by F. Augustus Heinze, a copper magnate who had tu ...
. When that bid failed, banks that had lent money to the cornering scheme suffered runs that later spread to affiliated banks and trusts, leading a week later to the downfall of the
Knickerbocker Trust Company The Knickerbocker Trust was a bank based in New York City that was, at one time, among the largest banks in the United States. It was a central player in the Panic of 1907. History The bank was chartered in 1884 by Frederick G. Eldridge, a frie ...
, New York City's third-largest trust. The collapse of the Knickerbocker spread fear throughout the city's trusts as
regional bank A regional bank is a depository institution, i.e. a bank, savings and loan, or credit union, which is larger than a community bank, which operates below the state level, but smaller than a national bank, which operates either nationally or intern ...
s withdrew reserves from New York City banks. Panic extended across the nation as vast numbers of people withdrew deposits from their regional banks. It is the 8th-largest decline in U.S. stock market history. The panic might have deepened if not for the intervention of financier
J. P. Morgan John Pierpont Morgan Sr. (April 17, 1837 – March 31, 1913) was an American financier and investment banker who dominated corporate finance on Wall Street throughout the Gilded Age. As the head of the banking firm that ultimately became known ...
,Panic of 1907: J.P. Morgan Saves the Day
/ref> who pledged large sums of his own money and convinced other New York bankers to do the same to shore up the
banking system A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital markets. Becaus ...
. That highlighted the limitations of the US
Independent Treasury The Independent Treasury was the system for managing the money supply of the United States federal government through the U.S. Treasury and its sub-treasuries, independently of the national banking and financial systems. It was created on August 6 ...
system, which managed the nation's
money supply In macroeconomics, the money supply (or money stock) refers to the total volume of currency held by the public at a particular point in time. There are several ways to define "money", but standard measures usually include Circulation (curren ...
but was unable to inject sufficient liquidity back into the market. By November, the
financial contagion Financial contagion refers to "the spread of market disturbances mostly on the downside from one country to the other, a process observed through co-movements in exchange rates, stock prices, sovereign spreads, and capital flows". Financial contag ...
had largely ended, only to be replaced by a further crisis. That was because of the heavy borrowing of a large brokerage firm that used the stock of
Tennessee Coal, Iron and Railroad Company The Tennessee Coal, Iron and Railroad Company (1852–1952), also known as TCI and the Tennessee Company, was a major American steel manufacturer with interests in coal mining, coal and iron ore mining and railroad operations. Originally based en ...
(TC&I) as
collateral Collateral may refer to: Business and finance * Collateral (finance), a borrower's pledge of specific property to a lender, to secure repayment of a loan * Marketing collateral, in marketing and sales Arts, entertainment, and media * ''Collate ...
. Collapse of TC&I's stock price was averted by an emergency takeover by Morgan's
U.S. Steel Corporation United States Steel Corporation, more commonly known as U.S. Steel, is an American integrated steel producer headquartered in Pittsburgh, Pennsylvania, with production operations primarily in the United States of America and in several countries ...
, a move approved by the
trust-busting Competition law is the field of law that promotes or seeks to maintain market competition by regulating anti-competitive conduct by companies. Competition law is implemented through public and private enforcement. It is also known as antitrust l ...
President
Theodore Roosevelt Theodore Roosevelt Jr. ( ; October 27, 1858 – January 6, 1919), often referred to as Teddy or by his initials, T. R., was an American politician, statesman, soldier, conservationist, naturalist, historian, and writer who served as the 26t ...
. The following year, Senator
Nelson W. Aldrich Nelson Wilmarth Aldrich (/ ˈɑldɹɪt͡ʃ/; November 6, 1841 – April 16, 1915) was a prominent American politician and a leader of the Republican Party in the United States Senate, where he represented Rhode Island from 1881 to 1911. By the 1 ...
, a leading Republican, established and chaired a commission to investigate the crisis and propose future solutions, which led to the creation of the
Federal Reserve System The Federal Reserve System (often shortened to the Federal Reserve, or simply the Fed) is the central banking system of the United States of America. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a ...
.Born of a Panic: Forming the Fed System
/ref>


Economic conditions

When United States President
Andrew Jackson Andrew Jackson (March 15, 1767 – June 8, 1845) was an American lawyer, planter, general, and statesman who served as the seventh president of the United States from 1829 to 1837. Before being elected to the presidency, he gained fame as ...
allowed the charter of the
Second Bank of the United States The Second Bank of the United States was the second federally authorized Hamiltonian national bank in the United States. Located in Philadelphia, Pennsylvania, the bank was chartered from February 1816 to January 1836.. The Bank's formal name, ac ...
to expire in 1836, the U.S. was without any sort of
central bank A central bank, reserve bank, or monetary authority is an institution that manages the currency and monetary policy of a country or monetary union, and oversees their commercial banking system. In contrast to a commercial bank, a central ba ...
, and the
money supply In macroeconomics, the money supply (or money stock) refers to the total volume of currency held by the public at a particular point in time. There are several ways to define "money", but standard measures usually include Circulation (curren ...
in New York City fluctuated with the country's annual agricultural cycle. Each autumn money flowed out of the city as harvests were purchased and—in an effort to attract money back—
interest rates An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed (called the principal sum). The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, th ...
were raised. Foreign investors then sent their money to New York to take advantage of the higher rates. From the January 1906
Dow Jones Industrial Average The Dow Jones Industrial Average (DJIA), Dow Jones, or simply the Dow (), is a stock market index of 30 prominent companies listed on stock exchanges in the United States. The DJIA is one of the oldest and most commonly followed equity inde ...
high of 103, the market began a modest correction that would continue throughout the year. The April 1906 earthquake that devastated San Francisco contributed to the market instability, prompting an even greater flood of money from New York to San Francisco to aid reconstruction. A further stress on the money supply occurred in late 1906, when the
Bank of England The Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based. Established in 1694 to act as the English Government's banker, and still one of the bankers for the Government of ...
raised its interest rates, partly in response to UK insurance companies paying out so much to US policyholders, and more funds remained in London than expected. From their peak in January, stock prices declined 18% by July 1906. By late September, stocks had recovered about half of their losses. The
Hepburn Act The Hepburn Act is a 1906 United States federal law that expanded the jurisdiction of the Interstate Commerce Commission (ICC) and gave it the power to set maximum railroad rates. This led to the discontinuation of free passes to loyal shippers. ...
, which gave the
Interstate Commerce Commission The Interstate Commerce Commission (ICC) was a regulatory agency in the United States created by the Interstate Commerce Act of 1887. The agency's original purpose was to regulate railroads (and later trucking) to ensure fair rates, to eliminat ...
(ICC) the power to set maximum railroad rates, became law in July 1906. This depreciated the value of railroad securities. Between September 1906 and March 1907, the stock market slid, losing 7.7% of its
capitalization Capitalization (American English) or capitalisation (British English) is writing a word with its first letter as a capital letter (uppercase letter) and the remaining letters in lower case, in writing systems with a case distinction. The term a ...
. Between March 9 and 26, stocks fell a further 9.8%. (This March collapse is sometimes referred to as a "rich man's panic".) The economy remained volatile through the summer. A number of shocks hit the system: the stock of
Union Pacific The Union Pacific Railroad , legally Union Pacific Railroad Company and often called simply Union Pacific, is a freight-hauling railroad that operates 8,300 locomotives over routes in 23 U.S. states west of Chicago and New Orleans. Union Paci ...
—among the most common stocks used as
collateral Collateral may refer to: Business and finance * Collateral (finance), a borrower's pledge of specific property to a lender, to secure repayment of a loan * Marketing collateral, in marketing and sales Arts, entertainment, and media * ''Collate ...
—fell 50 points; that June an offering of New York City bonds failed; in July the
copper Copper is a chemical element with the symbol Cu (from la, cuprum) and atomic number 29. It is a soft, malleable, and ductile metal with very high thermal and electrical conductivity. A freshly exposed surface of pure copper has a pinkis ...
market collapsed; in August the
Standard Oil Company Standard Oil Company, Inc., was an American oil production, transportation, refining, and marketing company that operated from 1870 to 1911. At its height, Standard Oil was the largest petroleum company in the world, and its success made its co-f ...
was fined $29 million for
antitrust Competition law is the field of law that promotes or seeks to maintain market competition by regulating anti-competitive conduct by companies. Competition law is implemented through public and private enforcement. It is also known as antitrust l ...
violations. In the first nine months of 1907, stocks were lower by 24.4%. On July 27, '' The Commercial & Financial Chronicle'' noted that "the market keeps unstable ... no sooner are these signs of new life in evidence than something like a suggestion of a new outflow of gold to Paris sends a tremble all through the list, and the gain in values and hope is gone". Several
bank run A bank run or run on the bank occurs when many clients withdraw their money from a bank, because they believe the bank may cease to function in the near future. In other words, it is when, in a fractional-reserve banking system (where banks no ...
s occurred outside the US in 1907: in Egypt in April and May; in Japan in May and June; in Hamburg and Chile in early October. The fall season was always a vulnerable time for the banking system—combined with the roiled stock market, even a small shock could have grave repercussions.


The panic


Cornering United Copper

The 1907 panic began with a
stock manipulation In economics and finance, market manipulation is a type of market abuse where there is a deliberate attempt to interfere with the free and fair operation of the market; the most blatant of cases involve creating false or misleading appearances ...
scheme to corner the market in
F. Augustus Heinze Frederick "Fritz" Augustus Heinze () (December 5, 1869 – November 4, 1914) was an American businessman, known as one of the three Copper Kings of Butte, Montana, along with William Andrews Clark and Marcus Daly. He was an intelligent, charis ...
's
United Copper Company The United Copper Company was a short-lived United States copper mining business in the early 20th century that played a pivotal role in the Panic of 1907. United Copper was incorporated in 1902 by F. Augustus Heinze, a copper magnate who had tu ...
. Heinze had made a fortune as a
copper Copper is a chemical element with the symbol Cu (from la, cuprum) and atomic number 29. It is a soft, malleable, and ductile metal with very high thermal and electrical conductivity. A freshly exposed surface of pure copper has a pinkis ...
magnate in
Butte, Montana Butte ( ) is a consolidated city-county and the county seat of Silver Bow County, Montana, United States. In 1977, the city and county governments consolidated to form the sole entity of Butte-Silver Bow. The city covers , and, according to the ...
. In 1906 he moved to New York City, where he formed a close relationship with notorious
Wall Street Wall Street is an eight-block-long street in the Financial District of Lower Manhattan in New York City. It runs between Broadway in the west to South Street and the East River in the east. The term "Wall Street" has become a metonym for t ...
banker Charles W. Morse. Morse had once successfully cornered New York City's ice market, and together with Heinze gained control of many banks—the pair served on the boards of at least six
national bank In banking, the term national bank carries several meanings: * a bank owned by the state * an ordinary private bank which operates nationally (as opposed to regionally or locally or even internationally) * in the United States, an ordinary p ...
s, ten
state bank A state bank is generally a financial institution that is chartered by a federated state, as opposed to one regulated at the federal or national level. State banks differ from a reserve bank in that it does not necessarily control monetary policy ...
s, five
trust companies A trust company is a corporation that acts as a fiduciary, trustee or agent of trusts and agencies. A professional trust company may be independently owned or owned by, for example, a bank or a law firm, and which specializes in being a trust ...
and four
insurance Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to hedge ...
firms. Augustus' brother, Otto, devised the scheme to corner United Copper, believing that the Heinze family already controlled a majority of the company. He also believed that a significant number of the Heinze's
shares In financial markets, a share is a unit of equity ownership in the capital stock of a corporation, and can refer to units of mutual funds, limited partnerships, and real estate investment trusts. Share capital refers to all of the shares of an ...
had been borrowed, and sold short, by speculators betting that the stock price would drop, and that they could thus repurchase the borrowed shares cheaply, pocketing the difference. Otto proposed a
short squeeze In the stock market, a short squeeze is a rapid increase in the price of a stock owing primarily to an excess of short selling of a stock rather than underlying fundamentals. A short squeeze occurs when there is a lack of supply and an excess of d ...
, in which the Heinzes would aggressively purchase as many remaining shares as possible, and then force the short sellers to pay for their borrowed shares. The aggressive purchasing would drive up the share price, and, being unable to find shares elsewhere, the short sellers would have no option but to turn to the Heinzes, who could then name their price. To finance the scheme, Otto, Augustus and Charles Morse met with Charles T. Barney, president of the city's third-largest trust, the
Knickerbocker Trust Company The Knickerbocker Trust was a bank based in New York City that was, at one time, among the largest banks in the United States. It was a central player in the Panic of 1907. History The bank was chartered in 1884 by Frederick G. Eldridge, a frie ...
. Barney had provided financing for previous Morse schemes. Morse, however, cautioned Otto that in order to attempt the squeeze, Otto needed much more money than Barney had, and Barney declined to provide funding. Otto decided to attempt the corner anyway. On Monday, October 14, he began aggressively purchasing shares of United Copper, which rose in one day from $39 to $52 per share. On Tuesday (Oct. 15), he issued the call for short sellers to return the borrowed stock. The share price rose to nearly $60, but the short sellers were able to find plenty of United Copper shares from sources other than the Heinzes. Otto had misread the market, and the share price of United Copper began to collapse. The stock closed at $30 on Tuesday and fell to $10 by Wednesday (Oct. 16). Otto Heinze was ruined. The stock of United Copper was traded outside the hall of the
New York Stock Exchange The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District of Lower Manhattan in New York City. It is by far the world's largest stock exchange by market capitalization of its listed ...
, literally an outdoor market "on the curb" (this curb market would later become the
American Stock Exchange NYSE American, formerly known as the American Stock Exchange (AMEX), and more recently as NYSE MKT, is an American stock exchange situated in New York City. AMEX was previously a mutual organization, owned by its members. Until 1953, it was known ...
). After the crash, ''
The Wall Street Journal ''The Wall Street Journal'' is an American business-focused, international daily newspaper based in New York City, with international editions also available in Chinese and Japanese. The ''Journal'', along with its Asian editions, is published ...
'' reported, "Never has there been such wild scenes on the Curb, so say the oldest veterans of the outside market".


Contagion spreads

The failure of the corner left Otto unable to meet his obligations and sent his brokerage house, Gross & Kleeberg, into bankruptcy. On Thursday, October 17, the New York Stock Exchange suspended Otto's trading privileges. As a result of United Copper's collapse, the State Savings Bank of Butte Montana (owned by F. Augustus Heinze) announced its insolvency. The Montana bank had held United Copper stock as
collateral Collateral may refer to: Business and finance * Collateral (finance), a borrower's pledge of specific property to a lender, to secure repayment of a loan * Marketing collateral, in marketing and sales Arts, entertainment, and media * ''Collate ...
against some of its lending and had been a
correspondent bank A correspondent account is an account (often called a nostro or vostro account) established by a banking institution to receive deposits from, make payments on behalf of, or handle other financial transactions for another financial institution. Co ...
for the Mercantile National Bank in New York City, of which F. Augustus Heinze was then president. F. Augustus Heinze's association with the corner and the insolvent State Savings Bank proved too much for the board of the Mercantile to accept. Although they forced him to resign before lunch time, by then it was too late. As news of the collapse spread, depositors rushed ''en masse'' to withdraw money from the Mercantile National Bank. The Mercantile had enough capital to withstand a few days of withdrawals, but depositors began to pull cash from the banks of the Heinzes' associate Charles W. Morse. Runs occurred at Morse's National Bank of North America and the New Amsterdam National. Afraid of the impact the tainted reputations of Augustus Heinze and Morse could have on the banking system, the
New York Clearing House The Clearing House is a banking association and payments company owned by the largest commercial banks in the United States. The Clearing House is the parent organization of The Clearing House Payments Company L.L.C., which owns and operates core ...
(a consortium of the city's banks) forced Morse and Heinze to resign all banking interests. By the weekend after the failed corner, there was not yet systemic panic. Funds were withdrawn from Heinze-associated banks, only to be deposited with other banks in the city. A week later many regional stock exchanges throughout the nation were closing or limiting trading. For example, the
Pittsburgh Pittsburgh ( ) is a city in the Commonwealth (U.S. state), Commonwealth of Pennsylvania, United States, and the county seat of Allegheny County, Pennsylvania, Allegheny County. It is the most populous city in both Allegheny County and Wester ...
city's
stock exchange A stock exchange, securities exchange, or bourse is an exchange where stockbrokers and traders can buy and sell securities, such as shares of stock, bonds and other financial instruments. Stock exchanges may also provide facilities for th ...
closed for three months starting on October 23, 1907.


Panic hits the trusts

In the early 1900s,
trust companies A trust company is a corporation that acts as a fiduciary, trustee or agent of trusts and agencies. A professional trust company may be independently owned or owned by, for example, a bank or a law firm, and which specializes in being a trust ...
were booming; in the decade before 1907, their assets had grown by 244%. During the same period, national bank assets grew by 97%, while state banks in New York increased by 82%. The leaders of the high-flying trusts were mainly prominent members of New York's financial and social circles. One of the most respected was Charles T. Barney, whose late father-in-law
William Collins Whitney William Collins Whitney (July 5, 1841February 2, 1904) was an American political leader and financier and a prominent descendant of the John Whitney family. He served as Secretary of the Navy in the first administration of President Grover Clev ...
was a famous financier. Barney's
Knickerbocker Trust Company The Knickerbocker Trust was a bank based in New York City that was, at one time, among the largest banks in the United States. It was a central player in the Panic of 1907. History The bank was chartered in 1884 by Frederick G. Eldridge, a frie ...
was the third-largest trust in New York. Because of past association with Charles W. Morse and F. Augustus Heinze, on Monday, October 21, the board of the Knickerbocker asked that Barney resign (depositors may have first begun to pull deposits from the Knickerbocker on October 18, prompting the concern). That day, the National Bank of Commerce where J.P. Morgan was a dominant factor, announced it would not serve as
clearing house Clearing house or Clearinghouse may refer to: Banking and finance * Clearing house (finance) * Automated clearing house * ACH Network, an electronic network for financial transactions in the U.S. * Bankers' clearing house * Cheque clearing * Cl ...
for the Knickerbocker. On October 22, the Knickerbocker faced a classic bank run. From the bank's opening, the crowd grew. As ''
The New York Times ''The New York Times'' (''the Times'', ''NYT'', or the Gray Lady) is a daily newspaper based in New York City with a worldwide readership reported in 2020 to comprise a declining 840,000 paid print subscribers, and a growing 6 million paid ...
'' reported, "as fast as a depositor went out of the place ten people and more came asking for their money nd the policewere asked to send some men to keep order". Two van loads of notes were quickly unloaded, yet even this failed to calm the panic stricken depositors. Directors and other officials of the Trust forced their way through the crowd, assuring them that everyone would be paid. In less than three hours, $8 million was withdrawn from the Knickerbocker. Shortly after noon it was forced to suspend operations. As news spread, other banks and trust companies were reluctant to lend any money. The interest rates on loans to brokers at the stock exchange soared to 70% and, with brokers unable to get money, stock prices fell to a low not seen since December 1900. The panic quickly spread to two other large trusts, Trust Company of America and Lincoln Trust Company. By Thursday, October 24, a chain of failures littered the street: Twelfth Ward Bank, Empire City Savings Bank, Hamilton Bank of New York, First National Bank of Brooklyn, International Trust Company of New York, Williamsburg Trust Company of Brooklyn, Borough Bank of Brooklyn, Jenkins Trust Company of Brooklyn and the Union Trust Company of Providence.


J. P. Morgan

When the chaos began to shake the confidence of New York's banks, the city's most famous banker was out of town.
J. P. Morgan John Pierpont Morgan Sr. (April 17, 1837 – March 31, 1913) was an American financier and investment banker who dominated corporate finance on Wall Street throughout the Gilded Age. As the head of the banking firm that ultimately became known ...
, the eponymous president of J.P. Morgan & Co., was attending a church convention in
Richmond, Virginia (Thus do we reach the stars) , image_map = , mapsize = 250 px , map_caption = Location within Virginia , pushpin_map = Virginia#USA , pushpin_label = Richmond , pushpin_m ...
. Morgan was not only the city's wealthiest and most well-connected banker, but he had experience with other similar financial crises—he had helped rescue the
U.S. Treasury The Department of the Treasury (USDT) is the national treasury and finance department of the federal government of the United States, where it serves as an executive department. The department oversees the Bureau of Engraving and Printing and t ...
during the
Panic of 1893 The Panic of 1893 was an economic depression in the United States that began in 1893 and ended in 1897. It deeply affected every sector of the economy, and produced political upheaval that led to the political realignment of 1896 and the pres ...
. As news of the crisis gathered, Morgan returned to Wall Street from his convention late on the night of Saturday, October 19. The following morning, the
library A library is a collection of materials, books or media that are accessible for use and not just for display purposes. A library provides physical (hard copies) or digital access (soft copies) materials, and may be a physical location or a vir ...
of Morgan's
brownstone Brownstone is a brown Triassic–Jurassic sandstone that was historically a popular building material. The term is also used in the United States and Canada to refer to a townhouse clad in this or any other aesthetically similar material. Type ...
at Madison Avenue and 36th St. had become a revolving door of New York City bank and trust company presidents arriving to share information about (and seek help surviving) the impending crisis. Morgan and his associates examined the books of the Knickerbocker Trust and decided it was insolvent, so they did not intervene to stop the run. Its failure, however, triggered runs on even healthy trusts, prompting Morgan to take charge of the rescue operation. On the afternoon of Tuesday, October 22, the president of the Trust Company of America asked Morgan for assistance. That evening Morgan conferred with George F. Baker, the president of First National Bank,
James Stillman James Jewett Stillman (June 9, 1850 – March 15, 1918) was an American businessman who invested in land, banking, and railroads in New York, Texas, and Mexico. He was chairman of the board of directors of the National City Bank. He forged alli ...
of the National City Bank of New York (the ancestor of
Citibank Citibank, N. A. (N. A. stands for " National Association") is the primary U.S. banking subsidiary of financial services multinational Citigroup. Citibank was founded in 1812 as the City Bank of New York, and later became First National City ...
), and the
United States Secretary of the Treasury The United States secretary of the treasury is the head of the United States Department of the Treasury, and is the chief financial officer of the federal government of the United States. The secretary of the treasury serves as the principal a ...
, George B. Cortelyou. Cortelyou said that he was ready to deposit government money in the banks to help shore up their deposits. After an overnight audit of the Trust Company of America showed the institution to be sound, on Wednesday afternoon Morgan declared, "This is the place to stop the trouble, then." As a run began on the Trust Company of America, Morgan worked with Stillman and Baker to liquidate the company's assets to allow the bank to pay depositors. The bank survived to the close of business, but Morgan knew that additional money would be needed to keep it solvent through the following day. That night he assembled the presidents of the other trust companies and held them in a meeting until midnight, when they agreed to provide loans of $8.25 million to allow the Trust Company of America to stay open the next day. On Thursday morning Cortelyou deposited around $25 million into a number of New York banks.
John D. Rockefeller John Davison Rockefeller Sr. (July 8, 1839 – May 23, 1937) was an American business magnate and philanthropist. He has been widely considered the wealthiest American of all time and the richest person in modern history. Rockefeller was ...
, the wealthiest man in the United States, deposited a further $10 million in Stillman's National City Bank. Rockefeller's massive deposit left the National City Bank with the deepest reserves of any bank in the city. To instill public confidence, Rockefeller phoned
Melville Stone Melville Elijah Stone (August 22, 1848 – February 15, 1929) was an American newspaper publisher, the founder of the ''Chicago Daily News'', and was the general manager of the reorganized Associated Press. Biography Stone's parents were R ...
, the manager of the
Associated Press The Associated Press (AP) is an American non-profit news agency headquartered in New York City. Founded in 1846, it operates as a cooperative, unincorporated association. It produces news reports that are distributed to its members, U.S. newspa ...
, and told him that he would pledge half of his wealth to maintain U.S. credit.


Stock exchange nears collapse

Despite the infusion of cash, the banks of New York were reluctant to make the short-term loans they typically provided to facilitate daily stock trades. Prices on the exchange began to
crash Crash or CRASH may refer to: Common meanings * Collision, an impact between two or more objects * Crash (computing), a condition where a program ceases to respond * Cardiac arrest, a medical condition in which the heart stops beating * Couch su ...
, owing to the lack of funds to finance purchases. At 1:30 p.m. Thursday, October 24, Ransom Thomas, the president of the
New York Stock Exchange The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District of Lower Manhattan in New York City. It is by far the world's largest stock exchange by market capitalization of its listed ...
, rushed to Morgan's offices to tell him that he would have to close the exchange early. Morgan was emphatic that an early close of the exchange would be catastrophic. Morgan summoned the presidents of the city's banks to his office. They started to arrive at 2 p.m.; Morgan informed them that as many as 50 stock exchange houses would fail unless $25 million was raised in 10 minutes. By 2:16 p.m., 14 bank presidents had pledged $23.6 million to keep the stock exchange afloat. The money reached the market at 2:30 p.m., in time to finish the day's trading, and by the 3 o'clock market close, $19 million had been loaned out. Disaster was averted. Morgan usually eschewed the press, but as he left his offices that night he made a statement to reporters: "If people will keep their money in the banks, everything will be all right". Friday, however, saw more panic on the exchange. Morgan again approached the bank presidents, but this time was only able to convince them to pledge $9.7 million. In order for this money to keep the exchange open, Morgan decided the money could not be used for margin sales. The volume of trading on Friday was 2/3 that of Thursday. The markets again narrowly made it to the closing bell.


Crisis of confidence

Morgan, Stillman, Baker and the other city bankers were unable to pool money indefinitely. Even the U.S. Treasury was low on funds. Public confidence needed to be restored, and on Friday evening the bankers formed two committees—one to persuade the clergy to calm their congregations on Sunday, and a second to explain to the press the various aspects of the financial rescue package. Europe's most famous banker,
Lord Rothschild Baron Rothschild, of Tring in the County of Hertfordshire, is a title in the Peerage of the United Kingdom. It was created in 1885 for Sir Nathan Rothschild, 2nd Baronet, a member of the Rothschild banking family. He was the first Jewish mem ...
, sent word of his "admiration and respect" for Morgan. In an attempt to gather confidence, the Treasury Secretary Cortelyou agreed that if he returned to Washington it would send a signal to Wall Street that the worst had passed. To ensure a free flow of funds on Monday, the New York Clearing House issued $100 million in loan certificates to be traded between banks to settle balances, allowing them to retain cash reserves for depositors. Reassured both by the clergy and the newspapers, and with bank balance sheets flush with cash, a sense of order returned to New York that Monday. Unbeknownst to Wall Street, a new crisis was being averted in the background. On Sunday, Morgan's associate, George Perkins, was informed that the City of New York required at least $20 million by November 1 or it would go bankrupt. The city tried to raise money through a standard bond issue, but failed to gather enough financing. On Monday and again on Tuesday,
New York Mayor The mayor of New York City, officially Mayor of the City of New York, is head of the executive branch of the government of New York City and the chief executive of New York City. The mayor's office administers all city services, public property ...
George McClellan George Brinton McClellan (December 3, 1826 – October 29, 1885) was an American soldier, Civil War Union general, civil engineer, railroad executive, and politician who served as the 24th governor of New Jersey. A graduate of West Point, McCl ...
approached Morgan for assistance. In an effort to avoid the disastrous signal that a New York City bankruptcy would send, Morgan contracted to purchase $30 million worth of city bonds.


Drama at the library

Although calm was largely restored in New York by Saturday, November 2, yet another crisis loomed. One of the exchange's largest brokerage firms, Moore & Schley, was heavily in debt and in danger of collapse. The firm had borrowed heavily, using shares of the
Tennessee Coal, Iron and Railroad Company The Tennessee Coal, Iron and Railroad Company (1852–1952), also known as TCI and the Tennessee Company, was a major American steel manufacturer with interests in coal mining, coal and iron ore mining and railroad operations. Originally based en ...
(TC&I) as collateral. With the value of the thinly traded stock under pressure, many banks would likely call the loans of Moore & Schley on Monday and force an ''en masse'' liquidation of the firm's stock. If that occurred it would send TC&I shares plummeting, devastating Moore and Schley and triggering further panic in the market. To avert the collapse of Moore & Schley, Morgan called an emergency conference at his
library A library is a collection of materials, books or media that are accessible for use and not just for display purposes. A library provides physical (hard copies) or digital access (soft copies) materials, and may be a physical location or a vir ...
Saturday morning. A proposal was made that the
U.S. Steel Corporation United States Steel Corporation, more commonly known as U.S. Steel, is an American integrated steel producer headquartered in Pittsburgh, Pennsylvania, with production operations primarily in the United States of America and in several countries ...
, a company Morgan had helped form through the merger of the steel companies of
Andrew Carnegie Andrew Carnegie (, ; November 25, 1835August 11, 1919) was a Scottish-American industrialist and philanthropist. Carnegie led the expansion of the American steel industry in the late 19th century and became one of the richest Americans i ...
and
Elbert Gary Elbert Henry Gary (October 8, 1846August 15, 1927) was an American lawyer, county judge and business executive. He was a founder of U.S. Steel in 1901, bringing together partners J. P. Morgan, Andrew Carnegie, and Charles M. Schwab. The city o ...
, would acquire TC&I. This would effectively save Moore & Schley and avert the crisis. The executives and board of U.S. Steel studied the situation and offered to either loan Moore & Schley $5 million, or buy TC&I for $90 a share. By 7 p.m. an agreement had not been reached and the meeting adjourned. By then, Morgan was drawn into another situation. There was deep concern that the Trust Company of America and the Lincoln Trust might fail to open on Monday due to continuing runs by depositors. On Saturday evening 40–50 bankers gathered at the library to discuss the crisis, with the clearing-house bank presidents in the East room and the trust company executives in the West room. Morgan and those dealing with the Moore & Schley situation moved to the librarian's office. There Morgan told his counselors that he would agree to help shore up Moore & Schley only if the trust companies would work together to bail out their weakest brethren. The discussion among the bankers continued late into Saturday night but without much progress. Around midnight, J. P. Morgan informed a leader of the trust company presidents that keeping Moore & Schley afloat would require $25 million, and he would not commit those funds unless the problems with the trust companies could also be resolved. The trust company executives understood they would not receive further help from Morgan; they would have to finance any bailout of the two struggling trust companies. At 3 a.m. about 120 bank and trust company officials assembled to hear a full report on the status of the failing trust companies. While the Trust Company of America was barely solvent, the Lincoln Trust Company was probably $1 million short of what it needed to cover depositor accounts. As discussion ensued, the bankers realized that Morgan had locked them in the library and pocketed the key to force a solution, the sort of strong-arm tactic he had been known to use in the past. Morgan then entered the talks and advised the trust companies that they must provide a loan of $25 million to save the weaker institutions. The trust presidents were still reluctant to act, but Morgan informed them that if they did not it would lead to a complete collapse of the banking system. Through his considerable influence, at about 4:45 a.m. he persuaded the unofficial leader of the trust companies to sign the agreement, and the remainder of the bankers followed. Having received these commitments, Morgan allowed the bankers to go home. On Sunday afternoon and into the evening, Morgan, Perkins, Baker and Stillman, along with U.S. Steel's Gary and
Henry Clay Frick Henry Clay Frick (December 19, 1849 – December 2, 1919) was an American industrialist, financier, and art patron. He founded the H. C. Frick & Company coke manufacturing company, was chairman of the Carnegie Steel Company, and played a major ...
, worked at the library to finalize the deal for U.S. Steel to buy TC&I and by Sunday night had a plan for acquisition. But one obstacle remained: the
anti-trust Competition law is the field of law that promotes or seeks to maintain market competition by regulating anti-competitive conduct by companies. Competition law is implemented through public and private enforcement. It is also known as antitrust l ...
crusading President
Theodore Roosevelt Theodore Roosevelt Jr. ( ; October 27, 1858 – January 6, 1919), often referred to as Teddy or by his initials, T. R., was an American politician, statesman, soldier, conservationist, naturalist, historian, and writer who served as the 26t ...
, who had made breaking up
monopolies A monopoly (from Greek el, μόνος, mónos, single, alone, label=none and el, πωλεῖν, pōleîn, to sell, label=none), as described by Irving Fisher, is a market with the "absence of competition", creating a situation where a speci ...
a focus of his presidency. Frick and Gary traveled overnight by train to the
White House The White House is the official residence and workplace of the president of the United States. It is located at 1600 Pennsylvania Avenue NW in Washington, D.C., and has been the residence of every U.S. president since John Adams in 1800. ...
to implore Roosevelt to set aside the application of the
Sherman Antitrust Act The Sherman Antitrust Act of 1890 (, ) is a United States antitrust law which prescribes the rule of free competition among those engaged in commerce. It was passed by Congress and is named for Senator John Sherman, its principal author. Th ...
and allow—before the market opened—a company that already held a 60% share of the steel market to make a large acquisition. Roosevelt's secretary refused to see them, but Frick and Gary convinced
James Rudolph Garfield James Rudolph Garfield (October 17, 1865 – March 24, 1950) was an American lawyer and politician. Garfield was a son of President James A. Garfield and First Lady Lucretia Garfield. He served as Secretary of the Interior during President Th ...
, the
Secretary of the Interior Secretary of the Interior may refer to: * Secretary of the Interior (Mexico) * Interior Secretary of Pakistan * Secretary of the Interior and Local Government (Philippines) * United States Secretary of the Interior See also

*Interior ministry ...
, to bypass the secretary and arrange a meeting with the president. With less than an hour before the Stock Exchange opened, Roosevelt and Secretary of State
Elihu Root Elihu Root (; February 15, 1845February 7, 1937) was an American lawyer, Republican politician, and statesman who served as Secretary of State and Secretary of War in the early twentieth century. He also served as United States Senator from N ...
began to review the proposed takeover and appreciate the crash likely to ensue if the merger was not approved. Roosevelt relented; he later recalled of the meeting, "It was necessary for me to decide on the instant before the Stock Exchange opened, for the situation in New York was such that any hour might be vital. I do not believe that anyone could justly criticize me for saying that I would not feel like objecting to the purchase under those circumstances". When news reached New York, confidence soared. The ''
Commercial & Financial Chronicle The ''Commercial & Financial Chronicle'' was a business newspaper in the United States founded by William Buck Dana (1829–1910) in 1865. Published weekly, the ''Commercial & Financial Chronicle'' was deliberately modeled to be an American take ...
'' reported that "the relief furnished by this transaction was instant and far-reaching". The final crisis of the panic had been averted.


Aftermath

The panic of 1907 occurred during a lengthy
economic contraction In economics, a recession is a business cycle contraction when there is a general decline in economic activity. Recessions generally occur when there is a widespread drop in spending (an adverse demand shock). This may be triggered by various ...
, measured by the
National Bureau of Economic Research The National Bureau of Economic Research (NBER) is an American private nonprofit research organization "committed to undertaking and disseminating unbiased economic research among public policymakers, business professionals, and the academic c ...
as occurring between May 1907 and June 1908. The interrelated contraction, bank panic, and falling stock market resulted in significant economic disruption. Industrial production dropped further than after any previous bank run, and 1907 saw the second-highest volume of bankruptcies to that date. Production fell by 11% and imports by 26%, while unemployment rose to 8% from under 3%. Immigration dropped to 750,000 people in 1909, from 1.2 million two years earlier. Since the end of the
Civil War A civil war or intrastate war is a war between organized groups within the same state (or country). The aim of one side may be to take control of the country or a region, to achieve independence for a region, or to change government policies ...
, the United States had experienced panics of varying severity. Economists
Charles Calomiris Charles William Calomiris (born November 8, 1957) is an American financial policy expert, author, and professor at Columbia Business School, where he is the Henry Kaufman Professor of Financial Institutions and the Director of Columbia Business Scho ...
and Gary Gorton rate the worst panics as those leading to widespread bank suspensions: the panics of 1873,
1893 Events January–March * January 2 – Webb C. Ball introduces railroad chronometers, which become the general railroad timepiece standards in North America. * Mark Twain started writing Puddn'head Wilson. * January 6 – Th ...
, and 1907, and a suspension in 1914. Widespread suspensions were forestalled through coordinated actions during the
1884 Events January–March * January 4 – The Fabian Society is founded in London. * January 5 – Gilbert and Sullivan's ''Princess Ida'' premières at the Savoy Theatre, London. * January 18 – Dr. William Price atte ...
and
1890 Events January–March * January 1 ** The Kingdom of Italy establishes Eritrea as its colony, in the Horn of Africa. ** In Michigan, the wooden steamer ''Mackinaw'' burns in a fire on the Black River. * January 2 ** The steamship ...
panics. A bank crisis in 1896, in which there was a perceived need for coordination, is also sometimes classified as a panic. The frequency of crises and the severity of the 1907 panic added to concern about the outsized role of J.P. Morgan and renewed impetus toward a national debate on reform. In May 1908, Congress passed the
Aldrich–Vreeland Act The Aldrich–Vreeland Act was a United States law passed in response to the Panic of 1907 which established the National Monetary Commission. On May 27, 1908, the bill passed the United States House of Representatives, House, mostly on a party- ...
, which established the
National Monetary Commission The National Monetary Commission was a U.S. congressional commission created by the Aldrich–Vreeland Act of 1908. After the Panic of 1907, the Commission studied the banking laws of the United States, and the leading countries of Europe. The ...
to investigate the panic and to propose legislation to regulate banking.


Central bank

A significant difference between the European and U.S. banking systems was the absence of a
central bank A central bank, reserve bank, or monetary authority is an institution that manages the currency and monetary policy of a country or monetary union, and oversees their commercial banking system. In contrast to a commercial bank, a central ba ...
in the United States. European states were able to extend the supply of money during periods of low cash reserves. The belief that the U.S. economy was vulnerable without a central bank was not new. Early in 1907, banker
Jacob Schiff Jacob (; ; ar, يَعْقُوب, Yaʿqūb; gr, Ἰακώβ, Iakṓb), later given the name Israel, is regarded as a patriarch of the Israelites and is an important figure in Abrahamic religions, such as Judaism, Christianity, and Islam. Ja ...
of Kuhn, Loeb & Co. warned in a speech to the New York Chamber of Commerce that "unless we have a central bank with adequate control of credit resources, this country is going to undergo the most severe and far reaching money panic in its history". In 1908:
Frank A. Vanderlip Frank Arthur Vanderlip Sr. (November 17, 1864 – June 30, 1937) was an American banker and journalist. He was president of the National City Bank of New York (now Citibank) from 1909 to 1919, and Assistant Secretary of the Treasury from 18 ...
led a U.S. business delegation to Japan to meet with Japanese financial leaders including Taka Kawada,
Shibusawa Eiichi was a Japanese industrialist widely known today as the "father of Japanese capitalism". He spearheaded the introduction of Western capitalism to Japan after the Meiji Restoration. He introduced many economic reforms including use of double-en ...
and his son Shibusawa Masao, also founding members of Mitsui & Co.,
Takuma Dan Takuma (written: 拓磨, 拓真, 拓馬, 琢磨, 匠馬, 卓磨, 卓真 or 卓馬) is a masculine Japanese given name. Notable people with the name include: *, Japanese footballer *, Japanese baseball player *, Japanese motorcycle racer *, Japanes ...
& Takamine Mitsui with the goal allying with the Japan to resolve the Panic of 1907 and the unstable U.S. Stock Market. Aldrich convened a secret conference with a number of the nation's leading financiers at the
Jekyll Island Club The Jekyll Island Club was a private club on Jekyll Island, on Georgia's Atlantic coast. It was founded in 1886 when members of an incorporated hunting and recreational club purchased the island for $125,000 (about $3.1 million in 2017) from John E ...
, off the coast of
Georgia Georgia most commonly refers to: * Georgia (country), a country in the Caucasus region of Eurasia * Georgia (U.S. state), a state in the Southeast United States Georgia may also refer to: Places Historical states and entities * Related to the ...
, to discuss monetary policy and the banking system in November 1910. Aldrich and A. P. Andrew (Assistant Secretary of the Treasury Department),
Paul Warburg Paul Moritz Warburg (August 10, 1868 – January 24, 1932) was a German-born American investment banker who served as the 2nd Vice Chair of the Federal Reserve from 1916 to 1918. Prior to his term as vice chairman, Warburg appointed as a member of ...
(representing Kuhn, Loeb & Co.),
Frank A. Vanderlip Frank Arthur Vanderlip Sr. (November 17, 1864 – June 30, 1937) was an American banker and journalist. He was president of the National City Bank of New York (now Citibank) from 1909 to 1919, and Assistant Secretary of the Treasury from 18 ...
(James Stillman's successor as president of the National City Bank of New York),
Henry P. Davison Henry Pomeroy Davison Sr. (June 12, 1867 – May 6, 1922) was an American banker and philanthropist. Biography Henry Pomeroy Davison was born on June 12, 1867 in Troy, Pennsylvania, the oldest of the four children of Henrietta and George B. Davis ...
(senior partner of J. P. Morgan Company), Charles D. Norton (president of the Morgan-dominated First National Bank of New York), and
Benjamin Strong Benjamin Strong Jr. (December 22, 1872 – October 16, 1928) was an American banker. He served as Governor of the Federal Reserve Bank of New York for 14 years until his death. He exerted great influence over the policy and actions of the entire F ...
(representing J. P. Morgan), produced a design for a "National Reserve Bank". The final report of the National Monetary Commission was published on January 11, 1911. For nearly two years legislators debated the proposal, and it was not until December 23, 1913, that Congress passed the
Federal Reserve Act The Federal Reserve Act was passed by the 63rd United States Congress and signed into law by President Woodrow Wilson on December 23, 1913. The law created the Federal Reserve System, the central banking system of the United States. The Panic ...
. President
Woodrow Wilson Thomas Woodrow Wilson (December 28, 1856February 3, 1924) was an American politician and academic who served as the 28th president of the United States from 1913 to 1921. A member of the Democratic Party, Wilson served as the president of ...
signed the legislation immediately, and the legislation was enacted on the same day, December 23, 1913, creating the
Federal Reserve System The Federal Reserve System (often shortened to the Federal Reserve, or simply the Fed) is the central banking system of the United States of America. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a ...
. Charles Hamlin became the Fed's first chairman, and none other than Morgan's deputy
Benjamin Strong Benjamin Strong Jr. (December 22, 1872 – October 16, 1928) was an American banker. He served as Governor of the Federal Reserve Bank of New York for 14 years until his death. He exerted great influence over the policy and actions of the entire F ...
became president of the
Federal Reserve Bank of New York The Federal Reserve Bank of New York is one of the 12 Federal Reserve Banks of the United States. It is responsible for the Second District of the Federal Reserve System, which encompasses the State of New York, the 12 northern counties of New ...
, the most important regional bank, with a permanent seat on the
Federal Open Market Committee The Federal Open Market Committee (FOMC), a committee within the Federal Reserve System (the Fed), is charged under United States law with overseeing the nation's open market operations (e.g., the Fed's buying and selling of United States Treasur ...
.


Pujo Committee

Although Morgan was briefly seen as a hero, widespread fears concerning
plutocracy A plutocracy () or plutarchy is a society that is ruled or controlled by people of great wealth or income. The first known use of the term in English dates from 1631. Unlike most political systems, plutocracy is not rooted in any established ...
and concentrated wealth soon eroded this view. Morgan's bank had survived, but the trust companies that were a growing rival to traditional banks were badly damaged. Some analysts believed that the panic had been engineered to damage confidence in trust companies so that banks would benefit. Others believed Morgan took advantage of the panic to allow his U.S. Steel company to acquire TC&I. Although Morgan lost $21 million in the panic, and the significance of the role he played in staving off worse disaster is undisputed, he also became the focus of intense scrutiny and criticism. The chair of the House Committee on Banking and Currency, Representative Arsène Pujo ( DLa.
7th 7 (seven) is the natural number following 6 and preceding 8. It is the only prime number preceding a cube (algebra), cube. As an early prime number in the series of positive integers, the number seven has greatly symbolic associations in religion ...
), convened a special committee to investigate a "money trust", the ''de facto'' monopoly of Morgan and New York's other most powerful bankers. The committee issued a scathing report on the banking trade and found that the officers of J. P. Morgan & Co. also sat on the boards of directors of 112 corporations with a market capitalization of $22.5 billion (the total capitalization of the
New York Stock Exchange The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District of Lower Manhattan in New York City. It is by far the world's largest stock exchange by market capitalization of its listed ...
was then estimated at $26.5 billion). Although suffering ill health, J. P. Morgan testified before the Pujo Committee and faced several days of questioning from
Samuel Untermyer Samuel J. Untermyer (March 6, 1858 – March 16, 1940) was a prominent American lawyer and civic leader. He is also remembered for bequeathing his Yonkers, New York estate, now known as Untermyer Park, to the people of New York State. Life S ...
. Untermyer and Morgan's famous exchange on the fundamentally psychological nature of banking—that it is an industry built on trust—is often quoted in business articles: :Untermyer: Is not commercial credit based primarily upon money or property? :Morgan: No, sir. The first thing is character. :Untermyer: Before money or property? :Morgan: Before money or anything else. Money cannot buy it … a man I do not trust could not get money from me on all the bonds in Christendom. Associates of Morgan blamed his continued physical decline on the hearings. He became ill in February and died on March 31, 1913, nine months before the Federal Reserve officially replaced the "money trust" as
lender of last resort A lender of last resort (LOLR) is the institution in a financial system that acts as the provider of liquidity to a financial institution which finds itself unable to obtain sufficient liquidity in the interbank lending market when other facil ...
.


Timeline


See also

*
Mercantile National Bank Building The Mercantile National Bank Building (known colloquially as The Merc) is a 31-story, skyscraper at 1800 Main Street in the Main Street district of downtown Dallas, Texas. It is the former home of the Mercantile National Bank, which later bec ...
* A Central Bank as a Menace to Liberty, by George H. Earle Jr.—Philadelphia lawyer and businessman. (1908)


Notes


References


Bibliography

* * Bruner, Robert F. and Sean Carr
"The Panic of 1907, (Darden Case No. UVA-G-0619
U of Virginia – Darden School of Business, (2009) * * * * * * * Fohlin, Caroline, and Zhikun Lu. "How Contagious Was the Panic of 1907? New Evidence from Trust Company Stocks." ''AEA Papers and Proceedings''. Vol. 111. 2021
online
* * * * * Jaremski, Matthew, and David C. Wheelock. "Interbank Networks and the Interregional Transmission of Financial Crises: Evidence from the Panic of 1907." ''FRB St. Louis Working Paper 2022-20'' (2022)
online
* . Retrieved January 11, 2010. * * pp 329–78 * * * * * * * * * * . Retrieved on September 14, 2008.


External links

*https://www.federalreservehistory.org/essays/panic_of_1907 {{featured article 1907 in economics 1907 in the United States October 1907 events November 1907 events Economic crises in the United States Financial crises
1907 Events January * January 14 – 1907 Kingston earthquake: A 6.5 Mw earthquake in Kingston, Jamaica, kills between 800 and 1,000. February * February 11 – The French warship ''Jean Bart'' sinks off the coast of Morocco. ...