Answer · confidence: partial
How much government cash went to New York and other cities in 1907?
Research question: What do Treasury deposit records and Cortelyou's 1907 public-funds placements in national banks show about how much federal cash was moved into New York and other reserve cities during the panic?
The records show that Treasury Secretary Cortelyou deposited $25 million of Treasury funds in national banks the morning after his October 24, 1907 meeting with New York financiers 9. Between October 21 and 31, 1907, the Treasury deposited a total of $37.6 million in New York national banks and provided $36 million in small bills to meet runs 10. The facts do not quantify federal cash moved into Chicago, St. Louis, or other reserve cities; the only city-level figures concern bank reserves, such as the approximately $200 million held by central reserve cities on August 22, 1907, including an estimated $35 million deposited by non-reserve-city banks 3. Treasury working capital had dwindled to $5 million by mid-November, so it could not contribute much more aid 13.
Checked 2026-10-21. Only documented and supported facts are used.
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[1] supported
Cash injections from the US Treasury and from J.P. Morgan failed to reassure depositors and investors before the New York Clearinghouse issued certificates.
"Cash injections from the US Treasury and from leading banker J.P. Morgan failed to reassure depositors and investors."United States: New York Clearing House Association, The Panic of 1907
[2] supported
Large NYCH banks borrowed clearinghouse loan certificates so they could fund deposit demands from banks outside New York City.
"Large NYCH banks borrowed CLCs so that they could fund deposit demands by banks outside New York City (Tallman and Moen 2012)."United States: New York Clearing House Association, The Panic of 1907
[3] supported
Including an estimated $35,000,000 deposited by non-reserve-city banks, the amount held by the central reserve cities was approximately $200,000,000, and a further unestimated amount was deposited there as the three-fifths reserve other banks could place.
"Assuming the deposits in central reserve cities by banks not located in reserve cities to be $35,000,000, the amount so held by the central reserve cities would be approximately $200,000,000."Secretary of the Treasury Annual Report, 1907 (1907)
[4] documented
Total deposits held by central reserve banks due to national banks reached $427,000,000, so nearly half of other national banks' deposits in the central reserve cities were reserves counted by banks outside those cities.
"The total amount held by central reserve banks due to national banks was $427,000,000, so that nearly one-half of the deposits by other national banks in the banks of the central reserve cities consisted of funds counted as reserves by national banks out- side of the, central reserve cities."Secretary of the Treasury Annual Report, 1907 (1907)
[5] supported
The reserve system required 25 per cent reserves in New York, Chicago, and St. Louis, and it was a source of weakness that could trigger panics by making banks withdraw deposit reserves in self-defense.
"Whenever there is a disturbance among the banks and any impairment of Confidence, this system is always a source of weakness instead of strength."Secretary of the Treasury Annual Report, 1907 (1907)
[6] supported
During the 1907 panic, federal aid took the form of public funds the U.S. Treasury deposited at key New York City banks.
"Federal aid came in the form of public funds deposited by the U.S. Treasury at key New York City banks"Real Shock, Monetary Aftershock: The San Francisco Earthquake and the Panic of 1907 (2002)
[7] supported
After the 1906 San Francisco earthquake, about 80 percent of the incoming gold was transferred to San Francisco, and much of the rest replenished New York bank reserves depleted by shipments to the West Coast.
"The New York Times (May 7, 1906) and the records of the National Monetary Commission indicated that 80 percent of these funds were transferred to San Francisco; much of the rest was used to replenish the gold reserves of New York banks depleted by specie shipments to the West Coast."Real Shock, Monetary Aftershock: The San Francisco Earthquake and the Panic of 1907 (2002)
[8] supported
Treasury Secretary George Cortelyou was persuaded to deposit $25 million of federal funds in New York banks during the panic.
"persuaded Treasury Secretary George Cortelyou to deposit $25 million of federal funds in New York banks"Panic of 1907: The Crisis That Created the Federal Reserve
[9] supported
Treasury Secretary Cortelyou deposited $25 million of Treasury funds in national banks the morning after his meeting with New York financiers.
"Cortelyou deposited $25 million of the Treasury’s funds in national banks the following morning."The Panic of 1907
[10] supported
Between October 21 and October 31, 1907, the Treasury deposited a total of $37.6 million in New York national banks and provided $36 million in small bills to meet runs.
"Between October 21 and October 31, the Treasury deposited a total of $37.6 million in New York national banks and provided $36 million in small bills to meet runs."The Panic of 1907
[11] supported
On August 22, 1907, New York national banks held $218.8 million in cash reserves, with the six largest national banks holding $140.7 million.
"On August 22, 1907, New York national banks held $218.8 million."Lessons from the Panic of 1907 Ellis W. Tallman and Jon R. Moen
[12] supported
U.S. Treasury funds were deposited into several national banks during the Panic of 1907 to try to make them solvent.
"deposited U.S. Treasury funds into several national banks in an effort to make them solvent."FEDERAL RESERVE BANK OF ST. LOUIS ECONOMIC EDUCATION
[13] supported
By mid-November 1907 the U.S. Treasury's working capital had dwindled to $5 million, so the Treasury could not contribute much more aid for the rest of the panic.
"By the middle of November, however, the U.S. Treasury’s working capital had dwindled to $5 million."The Panic of 1907