Knickerbocker Crisis

E853103

The Knickerbocker Crisis was a major U.S. financial panic in 1907 that triggered bank runs and led to significant reforms in the American banking system, including the creation of the Federal Reserve.

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Label Occurrences
Knickerbocker Crisis canonical 1

Statements (48)

Predicate Object
instanceOf financial crisis
alsoKnownAs Panic of 1907 NERFINISHED
appliesToJurisdiction New York City NERFINISHED
chronology predecessor to the Federal Reserve era in U.S. banking
country United States of America
surface form: United States
describedBySource U.S. financial history literature
endTime 1907-11
field economic history
followedBy creation of the Federal Reserve System
hasCause failed attempt to corner the stock of United Copper Company
loss of confidence in trust companies
speculative excesses on Wall Street
hasEffect contraction of credit
decline in stock prices
development of plans that led to the Federal Reserve Act of 1913
establishment of the National Monetary Commission
increase in interest rates
passage of the Aldrich–Vreeland Act of 1908
pressure for banking and currency reform in the United States
public loss of confidence in trust companies
recognition of need for a lender of last resort in the United States
severe disruption of the U.S. banking system
strengthening of New York Clearing House Association’s role
hasPart interbank suspensions of payments
run on Knickerbocker Trust Company
runs on other New York trust companies
use of clearing-house loan certificates
location New York City
New York
surface form: New York State

United States of America
surface form: United States
mainVictim Knickerbocker Trust Company NERFINISHED
partOf history of banking in the United States
pointInTime 1907
significantEvent bank runs on New York trust companies
intervention by J. P. Morgan and other financiers
liquidity crisis in the call money market
shortage of currency and cash
suspension of operations by Knickerbocker Trust Company
temporary closure of stock exchange for limited hours
widespread withdrawals of deposits
significantPerson Charles T. Barney NERFINISHED
George L. Rives NERFINISHED
J. P. Morgan NERFINISHED
James Stillman NERFINISHED
John D. Rockefeller NERFINISHED
Nelson W. Aldrich NERFINISHED
Theodore Roosevelt NERFINISHED
startTime 1907-10

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Panic of 1907 alsoKnownAs Knickerbocker Crisis