Panic of 1907

 

president Theodore Roosevelt

Definition and Summary of the Panic of 1907
Summary and Definition: The Panic of 1907, also known as the Bankers' Panic or Knickerbocker Crisis, was a US financial crisis that took place in 1907 when the New York Stock Exchange fell nearly 50% from its peak in the previous year. The Panic of 1907 followed the devastation of the
San Francisco Earthquake when many insurance companies went bankrupt and Stock Market shares began to fall.  At the same time the banking industry was unsettled with the rising success of trust companies and refused to help the trust companies. President Roosevelt was a "trust-buster". The American public started to fear that the banking and trust industries were both experiencing liquidity issues and had the cash to meet immediate and short-term obligations. This resulted in bank runs and triggered the nationwide financial panic of 1907 that lasted for months.

Panic of 1907 History for kids
Theodore Roosevelt was the 26th American President who served in office from September 14, 1901 to March 4, 1909. One of the important events during his presidency was the financial Panic of 1907.

  

Panic of 1907 History for kids: The Conspiracy
The banking industry was unsettled with the emerging successes of trusts companies and refused to provide financial support to the Knickerbocker Trust Company bank. The Knickerbocker Trust was unable to save itself from failure, and the public started to fear that the banking and trust industries were experiencing liquidity issues and the runs on banks began.

Panic of 1907 History for kids: President Roosevelt
President Theodore Roosevelt was also blamed for the panic of 1907 because of his anti-trust policies, which earned him the nickname of "trust-buster". Before the 1907 crash, Roosevelt had come into conflict with the powerful banker J.P. Morgan.

Panic of 1907 History for kids: Banking Reform
The Panic of 1907 resulted in banking reforms and led to the establishment of a central American bank when the Federal Reserve was created in 1913 during the presidency of Woodrow Wilson.

Panic of 1907 Timeline
This article provides a Timeline of the events surrounding the Panic of 1907.

Wall Street and the Panic of 1907

Wall Street during the Panic of 1907

 

Panic of 1907 Timeline: Fast Facts for kids via the Timeline Fact Sheet for kids
Interesting description and brief facts about the Panic of 1907 are detailed in the Timeline Fact Sheet for kids. The story of Panic of 1907 is told in a factual sequence consisting of a series of short facts providing a simple method of relating the history, events and effects of the Panic of 1907.

Panic of 1907 Timeline: Facts for kids

 
Panic of 1907 Timeline Fact 1:1890The 1890 Sherman Antitrust Act attempted to clamp down on monopolies and protect against business practices that limited competition, or controlled prices.
 
Panic of 1907 Timeline Fact 2:1904The 1904 Northern Securities Case was a victory for President Roosevelt in his "trust-busting" efforts when the Northern Securities Company, owned by banker J.P. Morgan and railroad magnate James J. Hill, was taken to court for violating the Sherman Antitrust Act
 
Panic of 1907 Timeline Fact 3:18 April 1906The San Francisco Earthquake caused considerable monetary problems when many insurance companies went bankrupt and shares on the Stock Market began to fall
 
Panic of 1907 Timeline Fact 4:June 29, 1906The Hepburn Act which gave the Interstate Commerce Commission the power to set maximum railroad rates, resulted in the depreciation of the value of railroad securities
 
Panic of 1907 Timeline Fact 5:July 1907Copper prices collapsed and stock prices declined by 18%
 
Panic of 1907 Timeline Fact 6:August 1907President Roosevelt continued his "trust-busting" activities by levying a $29 million dollar fine against Standard Oil Corporation owned by John D. Rockefeller. Stock prices fell again.
 
Panic of 1907 Timeline Fact 7:October 14, 1907 Copper magnates Augustus and Otto Heinze, attempted to corner the copper market. The plan backfired, bankrupting the Heinze Brothers. The Knickerbocker Trust, an American bank based in New York, was also involved in the attempted manipulation of the stock market
 
Panic of 1907 Timeline Fact 8:October 21, 1907The National Bank of Commerce announced that it would no longer accept checks for the Knickerbocker Trust Company.
 
Panic of 1907 Timeline Fact 9:October 22, 1907There was a run on the Knickerbocker Trust Company bank.
 
Panic of 1907 Timeline Fact 10:October 23, 1907Charles Barney, the president of  the Knickerbocker Trust Company bank requested financial assistance from J.P. Morgan - the banker flatly refused to help. The Trust Company of America and Lincoln Trust Company also collapsed
 
Panic of 1907 Timeline Fact 11:October 23, 1907The Trust Company of America and Lincoln Trust Company also collapsed
 
Panic of 1907 Timeline Fact 12:October 24, 1907Banks started to collapse including the Twelfth Ward Bank, Empire City Savings, the Hamilton Bank of New York, First National Bank of Brooklyn, International Trust Company, Williamsburg Trust Company, Borough Bank of Brooklyn, Jenkins Trust Company and the Union Trust Company of Providence.
 
Panic of 1907 Timeline Fact 13:October 24, 1907New York banks stopped making the short-term loans that were used by stock traders and prices on the Wall Street Stock exchange began to crash.
 
Panic of 1907 Timeline Fact 14:October 25, 1907The panic continued to increase on Friday, October 25. J.P. Morgan attempted to get banks to make short term loans. Morgan made a statement to newspaper reporters: "If people will keep their money in the banks, everything will be all right..."
 
Panic of 1907 Timeline Fact 15:October 28, 1907On Monday October 28, the New York Clearing House issued $100 million in loan certificates to be traded between banks and confidence in the banks began to return
 
Panic of 1907 Timeline Fact 16:Saturday, Nov 2Moore & Schley, a major brokerage, nearly collapses because its loans were uncertainly backed by the Tennessee Coal, Iron & Railroad Company (TC&I) U.S. Steel makes a proposal to purchase TC&I.
 
Panic of 1907 Timeline Fact 17:Mon, Nov 4, 1907President Roosevelt approves U.S. Steel's takeover of TC&I, despite his trust-busting stance
 
Panic of 1907 Timeline Fact 18:November 14, 1907Charles Barney, the president of  the Knickerbocker Trust Company bank was not financially ruined by the crash, but he was ostracized from the banking community and could not live with the disgrace. He shot himself in the abdomen with a .32 caliber revolver and died the same day.
 
Panic of 1907 Timeline Fact 19:AftermathFollowing the Panic of 1907 and the Stock Market Crash the Postal Savings System was established and it was decided that America to have a central bank and the Federal Reserve was eventually created in 1913.
 

Panic of 1907 Timeline: Facts for kids

 

Presidential Seal

 

Panic of 1907 for kids - President Theodore Roosevelt Video
The article on the Panic of 1907 provides detailed facts and a summary of one of the important events during his presidential term in office. The following video will give you additional important facts and dates about the political events experienced by the 26th American President whose presidency spanned from September 14, 1901 to March 4, 1909.

 

 

 

Panic of 1907 for Kids
 
Facts about the Panic of 1907 for kids and schools
Summary of the Panic of 1907 in US history
The Panic of 1907, a major event in US history
The Bankers' Panic or Knickerbocker Crisis for kids
Fast, fun facts about the Panic of 1907
The cause and effect of the Panic of 1907
Theodore Roosevelt Presidency and Panic of 1907 for schools, homework, kids and children

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