Evening journal., 1897-09-22
WALL STREET PANIC
Big Slump In the Railroad Stocks
on Change In New York.
ESTIMATED DROP OF S2OOOO,OOO.
The hears Proflted by Cuban War News
and the Announcement of Mr.. Me-
Kenna's Opinion ON the DIscrim-
mating Clause In the Tarifi.

mating Clause In the Tarif.
NEW YORK. Sept. %. - Stocks
dropped In Wall street yesterday in a
way that has not been equaled for
months.
For 4 time il looked as though the
bottom had fallen out Of the market
and that panic would follow.
As II was, within a few hours-min-
utes they seemed TO those interested
fully S20,OOOOOO was taken from the
value of the stocks as they had ap-
peared i'm the quotations at the opening
of the trading in the Exchange.
That many firms were not forced to
ruin is deemed remarkable. As IL is,
however, it is certain that hundreds
and perhaps thousands of small specu-
lators have lost their all.
These men have been investing their
money in the belief that the continued
bull influence would be kept up. AS
soon as they profited by one Else in the
market they reinvested their original
capital and their winnings in new ways
They were in no position to withstand
falling market, and when It came ruin
\ followed for them.
And the chances are that the end is
not yet and that another slump will
follow.
OF the causes for the slump, many are
given. At least half a dozen facts con-
tributed to the sudden action.
OF these perhaps the most influential
was the steady but quiet realizing by
big bull operators, which has been go
ing ON for days. These men bought
stocks before the present rise began.
They took advantage Of every crcum-
stance TO force the price up.
Having sent the price TO a point far
above where it had been for months
they felt that they had gone as far as
was safe. Then they began selling out.
This change was not noticed on the
market for so soon as one OF the big
operators began selling his holdings
were at once bought by some of the
smaller fry. whose belief in a continued
bull market was not hampered by def
mite knowledge.
In this way the stocks. though kept
at top notch prices. passed from the
hands of strong operators who could
support them II necessary into the pos
session Of men who had no resources
and must let go at the first bear raid.
And the bears were waiting for just
such an opportunity as came yesterday.
In the first place. the rumors Of trou-
hAt anu HAoslblt war With 0DdlH Alntu
them. This caused a feeling Of uncer-
tainty in foreign countries. and instead
Of being buyers these markets showed
a weakness, if they were not actively
unloading.
Coupled with this came Attorney
General McKenna's decision in regard
TO the 10 per cent discrimination clause
in the Dingley tariff law.
This clause was aimed to give United
States railroads an advantage over
those OF Canada.
His declaration against Il was blow
to American securities. for it left the
United States roads open to business
rivalry with Canadian lines.
These two points would have caused
a slump anyway. but when taken with
2 tightness Of money which is wanted
for other business and a natural reac-
tion due to continued high prices it re-
suited in a huge slump.
AS a consequence, stock after stock
went down, and for a time the widest
excitement prevailed on the Exchange.
Men who knew nothing of the cause
Of the drop in prices and only feared
that their profits would be swept away
hastened to sell all their holdings and
| in this very act added to the general
Generalization.
Western railroads were the first af-
fected. but with them went the indus
( trials, which dropped in sympathy.
Then came nearly every stock on the
E list
New York Central showed the biggest
= tumble. 1t went off 2& per cent to Ill.
- The decline was not only forced by
short selling, but by liquidation of long
1 accounts.
Canada Southern, Big Four. d. and
I H.. Northwest and Omaha were among
4 Vanderbilt stocks that got the tumbling
p ginger into them.
The fun effect Of a tight money mar
ket has been severely felt by the street.
Much Of the selling for long account
was done by traders whose loans had
2 been called by the banks for the pur-
= pose of making new loans at higher
- | rates
e Instead Of obtaining money at from /
e to ~ per cent as in the early stage OF
n the bull movement the brokers were
( compelled to pay per cent
Y This is because the heavy demand
r from the interior for money for cror
r. moving has drained the big banks OF