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With COUNTRY BANKS ON STRIKE
COULD WALL STREET LIYE?
New York Banks Were Saved by
Withholding the People's Money.
What If the Interior Banks With
held Money From New York?
(By Cusarles Albert Collman)
Late one November evening, chill,
dark and unforgettable, I felt the fin
ancial district of New York. In the
skyscrapers looming upward, the
windows seemed blae kand gaping
holes. From the bay, at shuddering
wind swept up Manhattan Island,
that struck one of the bone. It was
the kind of night when men raise the
collars of their ulsters well above
their ears and hurry homeward, grate
ful 'at the thought of warmth and
Attempting to cross Wall Street, I
was stopped by a long line of men in
single file. They stood there shiver
ing, their haggard faces nipped with
cold. Some sat on camp stools. A
few were drinking coffee from bottles
and munching sandwiches. They were
about two hundred in number, some
old and gray-haired, many young in
years, down to the age of boyhood.
This file of humanity stretched from
Broadway, opposite Trinity church.
yard, along Wall Street to a point
between the oflices of J. P. Morgan
and Company and the National City
Bank. Jt ended before the doors of
a large white building on the south
side of the historic stree.
It was then nearing eight o'clock.
The people had been posted there
since the close of banking hours that
afternoon. With sullen determina
tion, they were going to remain sta
tioned on the sidewalks for the next
14 hours, sleepless in the terrible cold
of that November night, so they could
be the first in line when the doors of
the Trust Company of -America would
open at 10 o'clock the following morn
It was a nig'it that had succeeded
one of the grim days of the Rich Mens
Panic. For weeks, dense crowds had
filled Wall and Broad streets, ner
vous, curious and questioning. They
had packed the high steps of the Sub
Treasury Building in their anxiety.
The district had, in fact, been black
with people eager to ditness one of
the most remarkable demonstrations
of modern times--the greatest and
longest bank run that has yet occur
red in financial history.
Stretching patience and endurance
to the breaking point, these night
watchers were hoping to get back the
money they had placed in a Wall
They little knew that they were
only the pawns of great financiers who
had foreseen an emergency.
Few o fthem dreamed that the ex
traordinary scene in which they play
ed their parts, had been staged within
the walls of powerful banking houses.
For more than a year, a furious
gamble had been in progress. Now
the greatest of all the gamblers, the
men who controlled Wall Street, were
making the country pay the costs of
all the dreadful hazards that had
The financial catastrophe had been
precipitated by wealthy speculators.
A crowd of copper men had attempt
ed a disastrous corner in United Cop
per shares. As fast as they garner
ed the stock, they put it up as collat
eral for call loans in a chain of banks
and trust companies identified with
their operations. Another coterie of
brokers had cornered the stock of the
Tennessee Coal, Iron & Railroad Com
pany, in order to get control of this
corporation, which was an iron, coal
and steel property extending through
Alabama, Tennessee and Georgia.
Speculation Ties People's Money
The brokers succeeded in their cor
ncr in T. C. & I But, instead of suc
cess, it spelt their ruin. In buying
up all the stock in the market, they
had run the price up to $166 a share.
On this stock they had obtained from
complaisant hankers loans of public
nioney dlepositedl in Wall Street insti
tutions, aggregating $25,000,000. This
immense loan w"as now a frozen
credlit. The brokers were unable to
sell the Tennessee Company as they
had planned. Neither could they pay
back their loans. Nor could the banks
get baick their money. They did not
(lare to l iquidate the collateral of
Tennessee stock, for had they tried it,
the price of TI. C. & I. wouldl have
dIropped to almost nothing, and drag
gedl the stock miarket dlown wvith it.
A deadlock now ensued in Wall
Street-ai period of uneasy waiting,
punctuated by dismal forebodings.
In the process of building up cor
ncrs in copper, coal, steel and steam
ship stocks, there had been a period
of wvild speculation. In the nine
months since the beginning of the
year, 1 56,791,0-17 .-ha~res of stock had
been traded in on the New York
~Stock Exchange, wvhich represented an
actual outlay of' $1 2,233,042.3177.
Missouri Lady Suffered Until Shi
Tried Cardui.-Says "Result
Was Surprising."-Got Along
Fine, Becene Normal
Springfield Mo.--"My back was' M
weak I could hardly stand up, and I
would have bearing-down pains and
was not well at any time," says Mrs
D. V. Williams, wife of a well-known
farmer on Route 6, this place. "1
kept getting headaches and having to
go to bed," continuos Mrs. Williami
describing - the troubles from which
she obtained relief through the use of
Cardul. "My' husband, having heard
of Cardul, proposed getting It for mie
"I saw after taking some Cardul
. that I was improving. The result
was surprising. I felt like a different
"Later I suffered from weakness
and weak back, and felt all run-down.
I did not rest well at night, I was so
nervous and cross. My husband said
he would got me some Cardui, which
he did. It strengthened me . . . My
doctor said I got along fine. I was is
good healthy condition. I cannot
may too much for it."
Thousands of women have suffered
as Mrs. Williams describes, until they
found relief from the use of Cardul.
Since it has helped so many, youI
should not hesitate to try Cardui Ui
troubled with womanly afilments.
For sale everywhere. I.88
Most of these transactions had been
carried on margins. In order to facili
tate them, banks in the financial dis
trict had advanced 80 per cent of the
money in the shape of call loans.
Country banks iin every part of the
Union had hundreds of millions in the
shape of demand deposits in Wall
Street institutions. And now Wall
Street bankers had tied up the bulk
of the countrys money in stock gamb
A money stringency asserted itself
as demands arose for capital needed
in legitimate business. The rates for
call money jumped to eight and one
half per cent, to 10 per cent, and
finally one day they advanced to the
stupendous figure of 125 per cent.
That meant that the broker was ask
ed to pay an interest rate of $1.25 on
every $1.00 that he was borrowing
from his bank. This was more than
the traffic could bear. The brokers
could not pay off their loans. The
banks began to throw the stock col
lateral upon the market for any price
it might bring, and the Stock Ex
change suddenly staggered under the
greatest break in prices it had sus
tained for many years.
Desperate scenes now took place in
the private offices of great banking
houses. White-haired brokers wept
and pleaded with bankers not to set)
out their loans. For in the demoraliz
ed Street, the first blow fell upon the
commission men who had been gamb
ling in copper shares. Their firms
went dow nlike houses of cards. The
Mercantile Trust Company, which had
financed them, became embarrassed.
The public, calmed by reassuring
statements, was as yet unsuspecting.
The heads of the great National
banks alone knew the danger of the
situation. They held a secret meet
ing, at which they determined upon a
plan to save their institutions at the
cost of others, and sustain the corner
in Tennessee Coal & Iron stock, from
which the banking leadiers hoped to
In great cities, when a fire gets be
yondl control, it is the custom of fire
men to bomb the intervening buildings
wvith dynamite to stop the progress of
the flames. The National banks that
controlledl the destinies of Wall Street
dlecidled upon a similar step. Tlhey
planned that the force of the panic
should be dlirectedl against the trust
companies, which in those (lays were
not members of the Newv York Clear
After banking hours that day, one
of the largest National banks an
nouncedl that it wvouldl refuse to clear
for the Kn ickerboeker Trust Company.
On the following morning there en
sued( a run on the Knickerbocker
T1rust, after paying out $8,000,000,
(closed its dloors. 'The day before, i ts
stock had been selling 'at $1,200 a
share.. This (lay its shares wvere not
worth1 a dollIari. Its presiden t, Charles
'T. Barney, at once resignied. This im
mense failure shocked t':e world. It
even became a feature of ribaldry in
London music halls.
Punish Another, Save Selves
Mr. Barney was a Sybarite. He
had love.d the beautiful things in life.
ie was never accused of wrongdoing,
hut he had made the mistake of hav
img associated himself with oneC of the
speculative groups. Only a short time
before this. Mr. Barney had shown
mue some of the treasures wvhich he
had .galthered in his splendid home.
In his foyer was an antique Venetian
ceiling. A green stone inantel, which
he had~ imported from Italy, filled
nearly the entire length of his great
dmmig room. Two weeks after the
bombing of his trust company, the
hanker w'as found lying dead beside
this marvel of Italian Renaissance of
the thirteenth centur-y, a revolver in
his hand and a bullet in his brain.
On the day when the Knickerbocker
Trust closed its doors, Wanll Street
was filled with dlireful rumors. That
night, the leaders of the Street held a
meeting up town in a private banker's
library. The panic wvas still out of
hand. They feared that there would
be runs on al ltheir banks next morn
ing. All this while the newspapers
had been true to the best traditions.
They ntill reassuredl the public, and
reframped from mentioning the name
of a single institution against which a
rnn might be precipitated.
But the suave and polished gentle
men who rule W'all Street can show
themselves to be0 as hard and cruel as
the scaly monstm.s of te Sauria
age. To safeguard their own bar*s,
they decided to single , out another
trust company, and hurl upon it the
full weight of the financial storm.
They adjourned that night from the
banker's library to Sherry's, where,
at one o'clock that' morning, the lead
ing partner in the foremost banking
house called-in the financial reporters
and to them spoke the deadly words.
He said that the subject of that
night's conference had been the af
fairs of the Trust Company of Am
Even then, the New York press re
fused to name Ah ill-fstes.japtitution,
with one excepion--a Jewish owned
newspaper which enjoys the. fAvor ,of
Early the next morning, Wall Street
was packed with the desperate de
positors df the Trust Company of
America, an institution which boast
ed resources of .$76,000,0'00. The
.company paid out $12,000,000 the first
day, $9,000,000 the second day, and so
continued paying daily for a period of
some 45 days. As shown before, the
depositors camped all night.in the fin
ancial district, so as not to lose their
places in line. The trust company was
slowly bled white. Then the dictators
of the Street compelled the associat
ed trust companies to advance the
unfortunate institution $25,000,000 of
their own funds. The order was that
the Trust Company of America must
not close down. In all, $34,000,000
was withdrawn by depositors during a
run unprecedented in the history of
The president of the Trust Company
of America was Oakleigh Thorne. He
stuck to his post without a word, and
paid out his mililons until the run was
ended. Then he continued the com
pany, and paid off the $25,000,000
loan of the asociated trust companies.
He even brought his concern back to
a point where it once more paid divi
dends upon its stock. But the harsh
emperors of the Street's arena had
turnetd down their thumbs. Their die
tum was that Onkleigh Thorne must
depart forever from Wall Street, with
all woh had been associated with
I did not see Mr. Thorne again un
til the (lay of his departure. When I
called at his narrow office on the
mezzanine floor of the Trust Company
of America building, he was seated,
smiling, before his desk, above which
hung a sign: "Don't Worry." His
hair had turned absolutely white.
Thorne said to me: "When the
storm broke, to my utter amazement,
its chief force was directed against
the Trust Company of America. It is
idle now to discus sthe reason why. I
am going acros sthe river. I have
bought the Corporation Trust Com
pany of New Jersey, to provide jobs
for the boys who stood by me."
The National banks of Wall Street
had saved themselves, and protected
the great pool in Tennessee Coal &
Iron stock. Now the exchanged $30,
000,000 in United States Steel sinking
fund five per cent bonds for the stock
ownership of the T. C. & I., held as
collateral under the $25,000,000 loans,
and thus, without the expenditure of
one dollar, the great Tennessee Coal
& Iron property, whose corner had
been the mainspring of the panic, fell
into the possession of the United
States Steel Corporation.
While these tragic events were
transpiring in Wall Street, how fared
it with the country? The banks of
the interior-in other words, the
country banks-had not been identi
fled in any way with the "stock pools"
and "stock corners" of Wall Street.
The great bulk of the American peo
ple had not been gambling in the
stock market, and, in fact, knew noth
ing of its speculative ventures. And
when the approaching catastrophe en
gulfed them, it came like a bolt from
the blue unknown.
Toward the end of October of that
year, the country was in need of
funds to move its crop~s. It owned
an ample surplus of many hundreds
of millions. Unfortunately. this
money had been intrusted by its local
banks to the New York National
banks, in the shape of dlemand (de
Turn Down Country Banks
Now the country banks called on
Wall Etreet for the return of a cer
tain amount of their funds. They
little suspected that their millions had
already been loaned out to stock
gamblers and tiedl up in the fo , of
frozen credlits. Their conste ion
may lbe imagined wvhen the Net Y'orkl
banks coolly replied that the- wvere
refusing to ship) coin or el., cency
against the dleposit balances of their
But it was true. The New York
National banks, totally dlisregardling
the country's rights and interests,
closedl their money vaults, refused to
pay out funds, andl kept business go
ing betwveen themselves by the in
terchange of Clearing House certi
fica' Trhey bluntly refused to pay
the cost of their mismanagement.
They let the country pay.
Immedliately, the panic,. boi* in
Wall Street, extended its ravages to
the Middle West, the South and the
'West. Business men dlesperately of
fered high premiums for currency.
Manufacturing concerns either closed
dlown or reduced their pay rolls by
discharging operatives and laborers
This was still in the month of Octo
ber. Throughout the country, banks
findling that their demands for the ire.
turn of their New Yoirk (deposits fell
on (leaf eairs, were forced to close
their doors. They had no appeal from
Wall Street's (decision. First of all,
the. Rath Trust Company, of Bath,
Maine, susipendled; on the saime (lay
the Blankeirs Trust Company, of Kan
sas City, shut its doors, that day also
witnessing the closing of the Dollar
Savings Bank, of Akron, Ohio.
G. C. COOPER,
Glasses Pitted, Broken
SUMTER, St C.
' The actionA of New York caused
.bankers in Minneapolis, St, Piul, Du- t
luth, Chidago, - Boston, Philadelphia, I
Baltimore, Louisville Columbus, Cin- I
cinnati,.Des Moines, betroit and other c
cities to suspend temporarily the pay.. 8
ment of money on checks, certificates s
of deposit or drafts, and to furnish no
money to bank correspondents. p
No more vivid lesson was ever read
to the country on the evils of margin
gambling in Wall Street, the specula
tion by pools and the cornering of n
stocks, than the panic of 1907. The
corner in T. C. & I., which made' a e
great corporation' richer without its
cryving tq 'gxlend a, 4ollar,. ' yp atonged 1i
or the uh'bmployed \ teri ihiner, the
factory workman who, lost his job,
the 'small merchant whose business
was sold under the hammer.
Long afterward, AlexanderGi ert,
then president of the New York Clear
ing House, acknowledged the culpabil
ity .of the New York banks in the u
Rich Men's Panic, in an address to v
the Denver Bankers' Convention. Mr. 7
Gilbert freely admitted that the fin- t
ancial collapse was seriously aggra- i
vated by the extravagant speculation c
which had prevailed on the Stock Ex- a
change before that time. "Had it b
not been," he added, "for Stock Ex
change demands previous to and dur- A
ing the panic, I doubt if money rates d
in the country would have at any time
been much more than normal."
"But," 'observes the Wall Street i
banker of the present day, "all that 1
sort of thing was ended 12 to 14 years i
ago. The Street has changed its c
methods since 1907, and its ethics to- c
day are high." t
Do the facts prove this allegation ?
Let us see.
Has the outbreak of excessive spec- r
ulation been modified or diminished or a
controlled, as the former head of the e
New York Clearing House had hoped ? ,
No. Today it is estimated in most r
conservative circles that nearly one S
billion and a half dollars have been p
loaned out on call to brokers for t
The amount of stocks carried on. a
margin, the number of pools in opera- t
tion, and the actual money consumed
in margin trading are three times t
larger than the figures that prevailed i
in the wild days preceding the panic o
of 1907. a
State of South Carolina, c
Clarendon County. t
Court of Common Pleas. t
Notice of Sale.
Julia C. Tindal as Administratrix of
the Estate of L. R. Tindal, deceased,
Peter Harvin, Defendant.
Under and by virtue of a Decree
of the Court of Common Pleas rend
ered in above stated action by his
Honor Judge John S. Wilson, I, J.
E. Gamble, Sheriff of Clarendon Coun
ty, South Carolina, will sel Ito the
highest bidder for cash, at public out
cry in front of the Court House door
at Manning, S. C., on Monday, the 7th
day of August, 1922, being salesday
within the legal hours for judicial
sales, al lthe title and interest of the
above named defendant in and to the
following described real estate:
All that tract of land situate in
Clarendon County, State of South
Carolina, containing sixty-five (65)
acres, more or less, adjoining lands
of L. R. Tindal, of Estate of Annie
Walker, of J. A. Way, of Silcox and
by the public road from Sumter to
Wrights Bluff, being the land devised
by Readus June.
Purchaser to pay for papers.
J. E. GAMBLE,
Sheriff of Clarendon County.
State of South Carolina,
Court of Common Pleas.
Notice of Sale.
David Levi as surviving Executor of
andl Trustee under the last Will and
Testament of Moses Levi, deceased,
Kate Madison, Clarence Madison,
Louis Madison, Julius Madison. and .
Willie Madison, Defendants.
Under and by virtue of a Decree
of thc Court of Common Pleas rend
eredl in above stated action by his
Ihonor Judge John S. Wilson, I, J. E.
Gamble, Sheriff of Clarendon County,
South Carolina, will sell to the high
est bidder for cash, at public outcry
in front of the Court Ihouse (door at
Manning, S. C., o'n Monday, the 7th,
day of August, 1922, being sakt ' v,
wvithin the legal hours for ju al
sales, the following L escribed real
All that tract of land in C' .,:ndon
County, South Carolina, containing
one hundred and one (101) acres,
more or less, and hounded now or
formerly as followvs: North by lands
of estate of Gourdin andl of R. J.
Aycock; East by lands of Salinas
knowvn as the Eliza Bradford lands'
South by lands of Joseph Dingle; anm1
West by lands of C. M. Davis known
as the Gourdin lands.
IPurchaser to pay for papers.
J. E. GAMBLE,
Sheriff of Clarendon County.
Sur plus a~
Tr. M. MOUJZON, Cash
l he speculative hero of, the s
oday is a pool operator with a s, Acy
istory-he was *nce a partner lt* a
oston bucket shop-who is openly
onducting an enormous syndicate
peculation in a western railway is
Market prices bre being demoralized
eriodically by a reckless gamble in
Iexican Petroleum, in which the bulls
oast that they have trimmed the
ears to the extent of more than two
Are Wall Street bankers more dise
reet today in their'ventures than they
,Evidently less so. During the early
Lalf of last year the financial district
vic. shaken to its foundations by the
iscovery that one of the largest
rust companies had droppe<. some
50,000,000 in the unwise promotion
f a shipping company and a banking
ouse, orgainzed to promote foreign
rade. Both ventures, launched in
Intried fields, by inexperienced men,
vere, proved economically unsound.
'he sole reason that this evcnt failed
o precipitate a financial catastrophe
s the fact that Wall Streets resour
es have quintupled since the war,
nd the losses were adjusted in secret
y the institutions involved.
It may be taken as an axiom that
Vail Street never alters- :c merely
It is quite probable that a panic,
uch as that of 1907, is imposisble of
epetition, at least within our gene-'
ation. But this probability is not
'ased upon any amendment of Wall
street's methods. It is due to the
reation of the Federal Reserve Sys
em as a result of the panic.
But the Reserve System is conduct
d through human agencies, and its
1erits or demerits are directly trace
ble to the sort of management it en
njoys. The panic of 1907 was a
irong inicted by Wall Street on the
est of the country. Has the Reserve
ystem made such discrimination im
ossible in the mature-has it nillified
he power of New York's financial
istrict to cornor the country's money
nd use it to the detriment of its ac
ual owners ?
To find the answer, one has only
o review the great crisis of 1920 in
he agricultural districts when ruin
vertook large numbers of farmers
nd ranchmen. At the hearing last
ear on this subject before the Joint
ongressional Committee, the former
entroller of the currency testified to
be bigand general fact that the sys
3m had failed to function as it should
ave done, and that its failure had
Who Is Sai
If YOU are not, the
Have you ever thou
This bank not
of your earning
ling of funds, E
W. C. DAVIS,
A. C. BRADHA
J. T. STUKES,
Found,--that glorious feeling that
coe wvith a clear, pure1 ruddy com-.
nk of N
. . . . $ .
ad Profits . 1
SEPU SPROTT, .Preside1
ler. JAMES M. SI
They are GOOD!
caused fearful losses and great suf
It was showh by official figures.
from the Federal Reserve bulletin )
that, at the end of October, 1920, the
,12 Federal Reserve banks held a
grand total of discounted and pur
chased paper amounting to $3,100,000
000, of which $299,000,000 consisted
of "bankers' 'acceptances" mainly.
from New York City banks. But the
"agricultural paper" and "like stock
paper" held by the Federal Reserve
banks amounted to but $240,000,000,
or less than eight per cent of the total
accommodations granted by the sys
tem. This eight per cent was ve y
small in consideration of the fat ,
that the farmers represent about 48.
per cent of our population, and when
the aggregate value of farm proper
ty, according to the last census, is
But toward all these questions the
attitude of Wall Street is defiant and
uncompromising. It feels-and per
haps this feeling is quite human
that while it remains the custodian of
the country's surplus wealth, it may
(1o as it wills with the sums intrusted
to it. It is out of sympathy with the
country, and its interests remain lo
cal and selfish. If, unfortunately, a
schism should ever arise between the
East and the West it will be due to
the Cynical viewpoint of the Street.
The official reports of the controller
(Continued on page seven)
m SOMEONE ELSE is.
ight of that?
you save as much
3s as you can, but
itself to you as
or the safe hand
s well as all busi
250 Pimples, 736 Blackheads
and 3 Boils!
No roward is offered, because they
are lost foreveri No question will be
asked, except 'one question, "Ho6w
did you loso thorn?" Thore is but one
answr,--"I cut out new fad treat
ments and guesswork; I used one of'
the most powerful blood-cleansers,
blood-purifiers an d f1e sh-builders
known, and that is S. S. S.! Now my~
face is pinkish, my skin clear as a
rose, my cheeks are filled out and mf
rheumatism, too, Is gone!" This will
be your experience, too, if you try '8.
S. S. It is guaranteed to be purely
tegetablei all its remarkably oe
An two sizes. Th larger size la e -
aROTT, Asst. Cashier..