city council

Source: Rockford Morning Star 11/15/1905

the Panic of 1907, also known as 1907 Bankers’ Panic, was a financial crisis that occurred in the United States when the New York Stock Exchange fell close to 50% from its peak in 1906 there were numerous runs on banks and trust companies many state and local banks entered into bankruptcy primary causes include a retraction of market liquidity by a number of New York City banks and a loss of confidence among depositors. Crisis was triggered by the failed attempt in Oct 1907 to corner the market on stock of the United Copper Company. Panic extended across the nation as vast numbers of people withdrew deposits from regional banks. The panic may have deepened if not for the intervention of financier J.P. Morgan, who pledged large sums of his own money, and convinced other New York bankers to do the same.  At the time the United States did not have a central bank to inject liquidity back into the market. April 1906 earthquake that devastated San Francisco contributed to the market instability. In late 1906, the Bank of England raised its rates, partly in response to UK insurance companies  paying out so much to U.S. policyholders. The Hepburn Act, which gave the Interstate Commerce Commission (ICC) the power to set maximum railroad rates, became law in July 1906. This depreciated the value of railroad securities. March collapse is sometimes called “Rich Man’s panic” Union Pacific stock fell 50%, copper market collapsed in July, New York city bonds failed, Aug. – the Standard Oil Co. was fined $29 million for anti-trust violations.

Source: Wikipedia