 In July 1908, the US was pulling itself out of the Panic of 1907, which occurred during a lengthy economic contraction between May 1907 and June 1908.This contraction led to suspension of cash payments by banks, a halt in lending, and a fall in the stock market, all resulting in significant economic disruption.Industrial production dropped, and the period saw the second-highest volume of bankruptcies to that date, with the dollar volume increasing nearly 50 percent.