Skip to main content Accessibility help

The Bank Panic of 1907: The Role of Trust Companies

  • Jon Moen (a1) and Ellis W. Tallman (a2)


The Bank Panic of 1907 was one of the most severe financial crises in the United States before the Great Depression. Although contemporaries realized that the panic in New York City was centered at trust companies, subsequent research has relied heavily on national bank data. Balance sheet data for trust companies and state banks as well as call reports of national banks indicate that the contraction of loans and deposits in New York City during the panic was confined to the trust companies.



Hide All
Andrew, A. Piatt, “Statistics for the United States,” Publications of the National Monetary Commission (Washington, DC, 1910), vol. 21.
Anonymous, “Supervision of Trust Companies,” World's Work (12 1904), pp. 5457–58.
Barnett, George E., “State Banks and Trust Companies since the Passage of the National Bank Act,” Publications of the National Monetary Commission (Washington, DC, 1910), vol. 7.
Board of Governors of the Federal Reserve System, All Bank Statistics, United States, 1896–1955 (Washington, DC, 1959).
Calomiris, Charles W., and Gorton, Gary, “The Origins of Banking Panics: Models, Facts, and Bank Regulation” in Hubbard, R. Glen, ed., Financial Markets and Financial Crises (Chicago, 1991).
Carosso, Vincent P., Investment Banking in America: A History (Cambridge, MA, 1970).
Carosso, Vincent P., The Morgans: Private International Bankers, 1854–1913 (Cambridge, MA, 1987).
Chari, V. V., “Banking Without Deposit Insurance or Bank Panics: Lessons From a Model of the U.S. National Banking System,” Federal Reserve Bank of Minneapolis Quarterly Review (Summer 1989), pp. 319.
Donaldson, R. Glen, “Panic, Liquidity, and the Lender of Last Resort” (Princeton University Working Paper No. 150, 10 1989).
Frickey, Edwin, Production in the United States, 1860–1914 (Cambridge, MA, 1947).
Friedman, Milton, and Schwartz, Anna, A Monetary History of the United States, 1867–1960 (Princeton, NJ, 1963).
Friedman, Milton, and Schwartz, Anna, Monetary Statistics of the United States: Estimates, Sources, Methods (New York, 1970).
Goldsmith, Raymond W., A Study of Saving in the United States (Princeton, NJ, 1955), vol. 2.
Gorton, Gary, “Clearinghouses and the Origins of Central Banking in the United States,” this Journal, 45 (06 1985), pp. 277–84.
Gorton, Gary, “Bank Panics and Business Cycles,” Oxford Economic Papers, 40 (12 1988), pp. 751–81.
Grossman, Richard, “The Macroeconomic Consequences of Bank Failures Under the National Banking System” (Manuscript, U.S. Department of State, 01 1989).
Herrick, Clay, “Trust Companies: Uniform Laws and Reports,” Banker's Magazine, 77 (09 1908), pp. 375–79.
Hickman, W. Braddock, The Volume of Corporate Bond Financing Since 1900 (Princeton, NJ, 1953).
James, John, Money and Capital Markets in Postbellum America (Princeton, NJ, 1978).
Keys, C. M., “The Money Kings: Safeguarding the Trust Companies,” World's Work (02 1908), p. 9909.
Macaulay, Frederick R., The Movement of Interest Rates, Bond Yields,. and Stock Prices in the United States Since 1856 (New York, 1938).
Miron, Jeffrey A., and Romer, Christina, “A New Monthly Index of Industrial Production, 1884–1940,” this Journal, 50 (06 1990), pp. 321–38.
Moen, Jon, and Tallman, Ellis W., “Lessons from the Panic of 1907,” Federal Reserve Bank of Atlanta Economic Review (05/06 1990).
Moen, Jon, and Tallman, Ellis W., “The Bank Panic of 1907: The Role of Trust Companies” (Federal Reserve Bank of Atlanta Working Paper No. 90–3, 1990).
Myers, Margaret G., The New York Money Market Volume I: Origins and Development (New York, 1931).
Neal, Larry, Growth, Stability, and Financial Innovation in the American Economy, 1897–1914 (Ph.D. diss., University of California, Berkeley, 1968).
Neal, Larry, “Trust Companies and Financial Innovation, 1897–1914,” Business History Review (Spring 1971), pp. 3551.
Redlich, Fritz, The Molding of American Banking: Men and Ideas (New York, 1968).
Smith, Bruce D., “Private Information, Deposit Interest Rates, and the ‘Stability’ of the Banking System,” Journal of Monetary Economics, 14 (1984), pp. 293317.
Smith, James G., The Development of Trust Companies in the United States (New York, 1928).
Sprague, O. M. W., “History of Crises under the National Banking System,” Publications of the National Monetary Commission (Washington, DC, 1911), vol. 5.
Timberlake, Richard H., “The Central Banking Role of Clearinghouse Associations,” Journal of Money, Credit, and Banking, 41 (02 1984), pp. 115.
Watkins, Leonard, Banker's Balances: A Study of the Effects of the Federal Reserve System on Banking Relationships (Chicago, 1929).
White, Eugene N., The Regulation and Reform of the Dual Banking System, 1900–1928 (Ph.D. diss., University of Illinois, Champaign-Urbana, 1980).


Altmetric attention score

Full text views

Total number of HTML views: 0
Total number of PDF views: 0 *
Loading metrics...

Abstract views

Total abstract views: 0 *
Loading metrics...

* Views captured on Cambridge Core between <date>. This data will be updated every 24 hours.

Usage data cannot currently be displayed