The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1896-07-31
A WALL STREET EPISODE.
An Interesting Comment on a Recent
Development in New York.

9GNGfOR't'Ii'A ~ HN~"' ~''~
A faithfully detailed history of the
past weeks transactions on the stock
exchange would make some interest
ing revelations. The causes winch IN
duced general decline III securities
and brought the stock market to the
verge of high panic are generally sup
posed TO have been the RAPID decline IN
the Treasury gold reserve, the rumor-
ed spread of the silver craze, the in
creasine demand for loans and higher
rates for time money. These factors
unuuestionably existed; but Their inn
portance bore no proportion to the
disturbing effects which have been
evoked from them. The facts had been
foreseen and their effects amply dis
counted by bear" operators and III the
free selling of stocks and this once
threshed straw was for a second Time
made a pretense for creating financial
decentralization.
The professional bears" may be eX-
empted from blame in this attempt to
precipftate disaster. For this attack,
men of other calibre were needed; who
did not need to borrow stock to make
their deliveries, but held it by the mil
lion and could sell without stint with
no fear of being cornered. The chief
operators were men who, under the
late dubious outlook had sold freely of
their large holdings and wished to re-
cover their stock at the lowest possible
prices. They were speculative million
aires, their co-adi tutors and friends,
stock dealers of the highest grade of
potency, and expert manipulators of
the market. Men controlling large
corporations were in the foreground
of ljhe assault. Their united wealth
and control of capital amounted to
hundreds of millions. To those con-
versant with Wall street affairs, IL IS
only needful to note last Monday
transactions in the leading speculative
stocks in order TO ascertain the person
| mel of the operators. The attack APP
pears to have been a virtual conspira-
CIV. The plan of operations bore evi-
dence of a Joint understanding and
| common purpose. How far it 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 prevented from going
| to further lengths only by the inter
yention of the banks with special ar
engagements to shield the Treasury.
1t is no secret that among the assail-
ants were citizens accustomed TO blend
politics with large speculative opera
tions. Men who stand high in party
councils who distinguished themselves
at the late National convention, and
who have figured 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 polit-
ical parties have been equally repre-
cented Herein lies one of the most
In eresting phases of the eXtraordi-
nary feat of buccaneering speculation.
| The facts reveal depth of financial
venality which we had scarcely been
prepared to expect even in the moral
| slums OF Wall street. We have heard
| of members of Congress and of high
| politicians specializing on she fate of
| sugar bills. and on the mysteries of
| tariff legislation and on the secrets of
| administrative departments. but it is
| at least something new that men who
| are leaders in protecting our money
| system should employ themselves in
| creating panics and endangering the
| ability of the Treasury to maintain
| gold payments. How near these poll
| ticians, with their millionaire associ-
| ates, came 10 succeeding in their at
| 4E3ilBt~ LO NiGsAlE Il SSEbDNS GIlStS may
| be inferred from the fact that, in order
| to restore the confidence they have de-
stroyed. the banks have deemed it nee
| essary to contribute twenty millions
| to the Treasury gold reserve. while the
| foreign bankers have interviewed to
stop gold exports by issuing, if needs
| be, SIS 10000 of bills Of exchange.
These grave precautions are due al
most exclusively to the attempt of this
millionaire comb nationto supply them
| selves with stocks at panic prices. 1t is
a sorry discouragemenit to the true and
faithful men who are sacrificing much
TO protect our financial interests 10
find that even among their colIabora-
tours in the case of sound money,
there are those who are ready to turn
great national danger into an occa-
sion for increasing their private
wealth.
1t is necessary to call public at.en-
ton 10 these scandalous operations in
order 10 correct the impression that
the events OF last Monday were due to
real apprehensions and distrusts
among holders of securities at large
The transactions of that day were
blow to public confidence as damag-
ing as The conclusions of the Chicago
convention. Fortunately, the banks
and the foreign bankers have done
all that was possible 10 repair the mis-
chief inflicted. But both here and in
Europe there is large mass of invest
ors whom no explanation about the
conspiracy viii reach; and there is lit
tie possibility of restoring GIhe shaken
confidence of that claiss-New York
Journal of Commerce. July 27.