Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1896-07-28
A waIi-street Episode.

faithfully-detailed history OF the
past weeks transactions on the STOCK
Exchange would make some interesting
revelations. The causes which lhduce1
general decline in securities ana
brought the stock market 10 the verge
OF high panic are generally supposed 10
have been the rapid decline in the Urea
sury gold reserve, the rumOred spread OF
tho silver craze. the increasing demand Tor
loans. and the higher rates for time money.
These factors unQuestionably existed out
their Importance bore no proportion 10
the disturbing effects which have Deeh
evoked from them. The facts had been
foreseen and their effects amply discount
ed by bear" operators ana in the free
selling Of stocks, and this once threshed
straw was for a second time made a
pretence for creating financial demorali-
Zatlon.
The professional bears may be exempt
ed from blame in this attempt 10 pre-
cipitate disaster. For this attack men
of other calibre were needed; who did
not need TO borrow stock to make their
deliveries, but held il by the million.
and could sell without stint with no fear
of being "cornered." The chief opera
tors were men who. under the late du-
bious outlook, had sold freely OF their
large holdings and wished TO recover
their stock at the lowest possible prices.
They were speculative millionaires, their
coadiustors and friends, stock dealers OF
the highest grade of potency, and expert
manipuators OF the market. Men con-
trolling large corporations and with in
nuential bank connections were in the
forefront Of the assault. Their united
wealth and control OF capital amounted
to hundreds OF millions. To those con-
versant with Wall-street affairs 1t is
only needful to note last Mondays
transactions in the leading speculative
stocks in order 10 ascertain the person
mel of the operators. The attack appears
to have been a virtual conspiracy. The
plan OF operations bore evidence OF
Joint understanding and a common pur-
pose How far 1t was intended TO carry
the mischief may be inferred from the
fact that the attack was pushed to the
verge of desolating panic. and was pre-
vented from going to further lengths
only by the Intervention Of the banks,
with special arrangements to shield the
Treasury
1t is no secret that among the assail-
ants were citizens accustomed to blend
politics with large speculative operations.
Men who stand high I'm party councils,
who distinguished themselves at tho late
national conventions, and who have fig
ured conspicuously before the country
as valiant opponents Of the free coinage
heresy, are credibly reputed TO have been
in the ranks OF these millionaire raiders
both political parties having been equally
represented. Herein lies one Of the most
interesting phases of this extraordinary
feat of buccaneering speculation. The
facts reveal n depth OF financial venality
which we had scarcely been prepared TO
expect even I'm The moral slums Of Wall
street. We have heard OF members OF
Congress and OF high politicians specu-
lating on the fate OF sugar bills and on
the mysteries Of tariff legislation ands on
the secrets OF administrative depart
ments: but Il IS at least something new
that men who are leaders In protecting
our money system should employ them
selves i'm creating panics and endangering
the ability OF the Treasury to maintain
gold payments How near these high
politicians. with their millionaire asso-
ciates came TO succeeding In their at
tempts 10 create a serious crisis may be
inferred from the fact that, in order to
restore the confidence they have destroy
ed the banks have deemed IL necessary
to contribute S2O.O00oOO to the Treasury
gold reserve. while the foreign bankers
have interviewed TO stop gold exports by
Issuing, II needs be, Sl5,OOO0e OF bills OF
exchange. These grave precautions are
due. almost exclusively to the attempt Of
this millionaire combination TO supply
themselves with stocks at panic prices.
1t is a sorry dlscouragement TO the true
and faithful men who are sacrificing much
to protect our financial interests to find
that even among their colaborators in
the cause of sound money there are
those who are ready to turn a great ma
tional danger into an occasion for in
creasing their private wealth.
It IS necessary 10 call public attention
to these scandalous operations in order
20 correct the impression that the events
OF last Monday were due to real appre-
hension and distrust among holders OF
securities at large. The transactions Of
that day were a blow to public confidence
as damaging as the conclusions of the
Chicago convention. Fortunately, the
banks and bankers have done all that
was possible 20 repair the mischief in
ficted. Both here and I'm Europe there
is large mass Of investors whom no
explanations about the conspiracy will
reach, and there is little possibility of
restoring the shaken confidence OF that
class.