The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1899-05-14
Some of the Factors Which Contributed
to the Two S1umps.

to the Two S1umps.
| New York, May ia reference to
| the decentralization in security values
| which occurred on the New York stock
exchange to-day requires resume of
the dominant influences of a. month
past to explain the two violent breaks
in prices of industrial specialties dur
| ing the period. On April 7 the market
| became semi-panicky and declines of
| from to Is points were made in va
| rlous stocks on enormous liquidation,
| 1mpelled by the conservatism of the
banks in refusing accommodation to
| borrowers on Industrial collateral, ex-
| cept on what were considered by some
| eXorbitant rates of interest. The Sc
| we're fall in prices weeded out a raft
of speculative commitments and the
| elimination of pyramidal accounts was
| pretty thorough. Some interests con-
sidered the financial atmosphere much
cleared by the slump. Outside specu-
| lators were pretty we'll loaded up with
the shares of many industrial combin-
atoms and the shrinkage in quoted val
| ues of securities rendered the specu-
| latOrs cautious of re-entering the mar
| ket when the recovery came in.
| Meantime, in rapid succession, oc-
CURED the usual crop scare rumors. APP
prehension over the monetary situation
and a host of other unfavorable infiu-
ences affecting individual properties
The apathy of the public grew more pro-
nounced and the market narrowed
down to a contest between profess
SIGNALS.
The condition of affairs removed pow
erful opposition to the bears and as
matters stood to-day they had only to
contend with their associates on the
| board. The unexceptional success which
l. L., 1,
securities they are allied with has
caused an immense following over the
country. Nevertheless the public ope-
rators proved to be the most easily
alarmed when vigorous assault was
made on the Flower favorites and those
liquidated heavily, leaving the big men
of the crowd who had confidence in the
merit of the stock to check the break
and start rally. The death of the cen
| trail figure in this combination had
spread CONSERVATION in financial circles,
as it was realized that owing to the
Flower diversified interests a sentiment
tai alarm would necessarily follow and
the market might prove unable to abb
sorb the deluge of long stock.
Before the market opened some bro
kers went to the banks and put up ad-
ditional collateral on the loans that
they had secured so as to prevent a
sacrifice of their securities if the fall
proved more severe than the margin of
safety contained in the loans. Commits
sion houses called upon treir clients for
additional collateral on the stocks
which were expected to bear the brunt
of the attack. AS a partial offset to
the heavy liquidation which was prom
ised there was large contingent down
town whose appearance is simultaneous
with a financial crisis They are known
as bargain hunters who take advan-
To 90 of fhn low I1yino tn 11ti Iizn fIe5,,
savings on purchases of dividend-pay-
ing shares for permanent investment.
| While some of the class have ample
means to take hundreds of shares, the
| great bulk confine their orders in frac-
| tiona1 lots. Hundreds of excited people
| thronged the galleries at the opening
| to-day
| In brokers' offices pretty much the
same scenes were enacted and as the
ticker recklessly ground out the quo
tations which perhaps meant absolute
ruin to some of the Spectators faces
blanched and a look of unutterable des-
pair settled on some of the venture
some traders. On the floor of the Stock
Exchange there We're but few abSen-
tees. About the various trading posts,
where the Flower specialties We're dealt
in, were throngs of men 80 deep, await
ing the drop of the gavel to commence
operations. When the signal was given
hoarse cries and wild gesticulations,
making the scene the most tumultuous
in over 20 years. When the ticker re-
corded the opening transactions there
was a block of $4,000 shares of Brook
Ign Transit at from 10 down to 100,
the low point rejecting break of 1881
| points.
Wide openings were made in all the
other Flower specialties, 1000 Federal
Steel going at from 56 down to so and
10000 Peoples Gas at from 112 to 100.
Although only so shares of New York
Air Brake were traded in at the out
set the stock dropped from 1856, the
opening figure, to 125, the latter indi-
eating loss over night Of 60 points.
Subsequently the price recovered to
164. The panic in the Flower issues
spread to minor extent in other prop
critics, losses running from to u
points, with many of the prime secu-
rites affected