which was given. Soon it was noted that the Knickerbocker Trust Company
was in a precarious condition, and the directors, following the example
of the other bank, appealed to the same committee. The investigation of
the committee showed the company insolvent and aid was refused. When the
facts became known, a run on the bank began and it was compelled to
close its doors. The lack of confidence in other financial institutions
was soon shown by similar runs.
No bank could stand the strain unaided. Now the Federal Government
stepped in and Secretary of the Treasury Cortelyou came in person to New
York and deposited $40,000,000 of the surplus from the United States