The Journal of Economic History


The Bank Panic of 1907: The Role of Trust Companies

Jon Moena1 and Ellis W. Tallmana2

a1 Assistant Professor of Economics, The University of Mississippi, University, MS 38677.

a2 Economist, The Federal Reserve Bank of Atlanta, Atlanta, GA 30303.


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.