The 1907 crisis stopped after J. P. Morgan organized private support during the Panic of 1907.
The panic began after a failed attempt to corner the stock of United Copper Company triggered runs on associated banks and trust companies. The resulting loss of confidence spread through New York’s financial system, which lacked a U.S. central bank capable of acting as a routine lender of last resort.
J. P. Morgan gathered bankers, examined institutions, and helped arrange loans and commitments to prevent further failures. The Treasury also supplied funds. The emergency eventually eased, but the episode showed how dependent the financial system was on one private financier’s authority and resources.
The Panic of 1907 contributed to political support for monetary reform. The Federal Reserve System was created in 1913, establishing a central banking structure that did not exist during the panic.