The citizen. (Frederick City, Md.) 1895-1923, 1897-09-24
WALL STREET PANIC
Big Slump In the Railroad Stocks
on Change In New York.
ESTIMATED DROP OF S2O,OOO,OOO.
The Bears PrOfited by Cuban War News
and the Announcement of MIR. Nc
Kenna's Opinion on the Discrim.
mating Clause In the Tariff.


NEW YORK, Sept. %. - Stocks
dropped in Wall street yesterday in a
way that has not been equaled for
months.
For time it looked as though the
bottom had fallen out of the market
and that a panic would follow.
As it was, within a few hours-min-
utes they seemed to those interested
fully $20,000,0O0 was taken from the
value of the stocks as they had ap-
peared in the quotations at the opening
Of the trading in the Exchange
That many firms were not forced to
ruin is deemed remarkable AS it 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 rise 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
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 60
ing on for days. These men bought
stocks before the present rise began.
They took advantage of every circum-
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 if necessary into the pos
session of men who had no resources
Eand must let go at the first bear raid.
And the bears we're waiting for just
such an opportunity as came yesterday.
In the first place, the rumors of trou-
BILE and possible war with Spain aided
them. This caused a feeling of uncer-
ltainty 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 1t 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
slump anyway, but when taken with
tightness of money which is wanted
for other business and a natural reac-
ton due to continued high prices 1t re-
suited in huge slump.
AS a consequence, stock after stock
went down. and for 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
FASTENED to sell all their holdings and
in this very act added to the general
decentralization.
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
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
accounts.
Canada Southern, Big Four, D. and
H., Northwest and Omaha were among
Vanderbilt stocks that got the tumbling
ginger into them.
The full 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
been called by the banks for the pur-
pose of making new loans at higher
rates.
Instead of obtaining money at from l
to IL per cent, as in the early stage of
the bull movement. the brokers were
compelled to pay per cent.
This is because the heavy demand
from the interior for money for crop
moving has drained the big banks of
loanable funds.