The Knickerbocker Trust was at one time, one of the largest banks in the United States. Its funds however were being used by its then president Charles Barney in a plan to drive up the cost of copper and corner the market. This gamble came undone due to the dumping of millions in copper on the market to stop a hostile takeover in an unrelated organisation. Iain Banks is a Scottish-born writer of both mainstream and science fiction novels. ... General Name, Symbol, Number copper, Cu, 29 Chemical series transition metals Group, Period, Block 11, 4, d Appearance metallic brown Atomic mass 63. ...
This was then public and on the 21 October the National Bank of Commerce announced that it would stop accepting cheques for the Knickerbocker Trust Company triggering a run of depositors demanding there funds back. October 21 is the 294th day of the year (295th in leap years) in the Gregorian Calendar, with 71 days remaining. ...
According to author John Steele Gordon, "Depositors lined up in front of the bank's headquarters on the future site of the Empire State Building to demand their funds. The bank closed the next day after an auditor found that its funds were depleted beyond hope. The bank's president, Charles Barney, shot himself several weeks later, prompting some of the bank's outstanding depositors to commit suicide as well." The Empire State Building Entrance lobby The Empire State Building, a 102-story contemporary Art Deco style building in New York City, was designed by Shreve, Lamb and Harmon Associates and built in 1931. ...
The panic in the market can be seen as the main driver for the creation of what was to become the Federal Reserve System. And more importantly is seen as the final straw that broke the back of the stock exchange and triggered depression in the market until the fall of 1908. The Federal Reserve System is headquartered in the Eccles Building on Constitution Avenue in Washington, DC. The Federal Reserve System (also the Federal Reserve; informally The Fed) is the central bank of the United States. ... 1908 is a leap year starting on Wednesday (link will take you to calendar). ...
The Knickerbocker Trust closed its doors on the 22 October. October 22 is the 295th day of the year (296th in leap years) in the Gregorian Calendar, with 70 days remaining. ...
Ominously, next to the front-page article describing the run on the KnickerbockerTrust in the Wednesday, October 23, edition of the New York Times was a headline describing the TrustCompany of America, the second largest trustcompany in New York City, as the current "sore point" in the panic.
Trusts were originally rather conservative institutions, managing estates, holding securities, and taking deposits, but by 1907 trusts were performing most of the functions of banks except issuing bank notes.
Trusts were not part of the correspondent banking system, so their deposits were more local and less directly subject to the recurring seasonal strains on funds.
The position of the trustcompanies, especially those of the city of New York, was one of the disturbing features of the panic.
The trustcompanies of New York were required by the law of the state to maintain only 5 % of their demand deposits in cash in their vaults.
A banker is entitled, in dealing with trust moneys,known to be such, to insist on the authority of the whole body of trustees, direct and not deputed, and this is probably the safest course to adopt.
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