The United States boom, busted its way through the 1800s and the growing pains continued into the new century. On October 1, the nation was plunged into the Panic of 1907. The previous spring, a currency drain, caused mainly by the overzealous funding of new businesses, sent the markets tumbling and strongly hinted of a coming depression. By the fall, the public felt the fiscal pinch and made a mad grab to pull their money out of banks. A run on the Knickerbocker Trust in New York, which lacked the resources to pay out to the demanding public, ultimately toppled the economy. Sensing that the nation needed an infusion of cash, President Roosevelt enlisted the aid of his one-time enemy, financier J.P. Morgan. Morgan capitalized on his considerable reputation to borrow $1 million in gold from European countries. Even with Morgan's help, the depression lasted until the fall of 1908.
- source: www.history.com
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