The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1899-05-14
InsT 4 PANIC N STOCKS
snA1B 81 FLowEa THE SIGNAL
- IA BIG RAID ny BEARS.
4bey sseeessfaily Hammer Dswn
- Prices Of the SDeeAalt1es lie
- Bees BeostinE, aaA the
nmnu Holders Were Crowded Oct


neucsalixatfon Ia security values which oc-
surrsd on the New York stock exchange
s.1sv requires q resume OF the dominant
SIauences Of . month past 70 explain the
= v4oien, breaks IN prices Of Industrial
eaeetaltias during that period. On April I
- market became aemi-panicky. and de-
1 ciiues OF from 10 Is points were made In
vsx4ous stocks on enormous liquidation.
tupeiIed by the conservatism Of the banks
s q refusing accommodation 10 borrowers on
lnd,usrjai collateral except on what were
nanstcered by some exorhitant rates Of in
aaree:. The severe fall In prices weeded
eut q raft of speculative commitments
and the elimination OF pyramtdal accounts
sas pretty thorough.
come interests considered the financial
atmosphere much Cleared By the slump
but the shock TO public confidence was not
easily remedcd Outside spectators were
neotty well loaded up with the shares Of
many Industrial combinations, and the
ahrsnkAgs In quoted values Of securities
readered the spectators cautions Of re-
ntsging tbs market when the recovery
eaus In. Meantime, In rapid succession.
{ occurred the usual crop scare runners APP
peehsnSion over the monetary situation.
end host OF other unfayorabie influences
affecting individual properties. The ap-
afhy Of the public grew more pronounced.
and the market narrowed down to q con.
test between PROFESSIONALS.
isrs stood today they had only TO contend
With their associates On the oJArsi- The
unexceptionai success which the Flower
PARTY have had with the securities they
are allied with has caused an immense
following over the country. Nevertheless
the public operators provc1 to he the NEST
easily alarmed when = vigorous assault
wss made on the Fiowe- fasorites. and
S6xxr tffxsf.d lat an hAS Ian al ri
: men OF the crowd who han confidence ia
the merit OF the stock to check the breaI
!. and start q rally. The death OF he central
nrrire In the combina ton had spread con-
Sternasion in financial circles. "a II was
realized that owing 10 the Flower diyersI.
lied interests a sentimental alarm woad
necessarily folfow. and the marker might
prove unable 70 absorb the deiuse OF long
stock
{ Before the market opened some brokers
went 10 the banks and put up additional
collateral on the loans that they had Sc
cured, so as to prevent a sacrifice Of their
securities IL the fall proved more severe
than the margin OF safety contained In
The loans. Commission houses called upon
! thesr Chants for additional collateral on
the stocks which were expected 10 bear
the brunt of the attack.
A. q partial Offset To the heavy iluafsfa-
ton which was promised. there WAS a
pearance Ii simultaneous with financial
crisis. They are known as bargain hunt.
era" who take advantage Of the low
prices 70 utilize their savings on pur-
chases Of divfdend-paying shares for per-
0Anent investment. While some OF the
class have ample means to take hundreds
OF shares, the great bulk eoIHne their
orders TO fractional lots Hundreds Of
e1citcd people thronged the galleries at
the opening today. In the brokers' of
ices pretty much the same scsnes wers
Enacted. ana n the ticker reckIassiy
ground out the quotations. faces blanched
md . look OF unufterahie despair settled
"a some OF the vsntur ssone traders. on
NJ few sbsenfees Around the various
tAdfnG posts. where the Flower special.
~ were dealt in. were throrgs Of men
ttr deep. awaiting the drop Of the gaveI
AOmmercs operations. When the signal
gfven there was IA indescrfbabis
lnuV. hoarse cries and wild gcsticula-
euns. making the scene the most tumult-
eeus In over twenty years.
When the ticket recorded the opening
9ArkAotions there WAS q block Of 81 90
Mares OF Brooklyn Transi. at from 10
s.n e ioo. the low poin, rejecting a
4Ade In all OF the other Flower speciaities.
1o0 Federal Stee, going at from S. down
% 20 and 1850 Peoples Gas at from IL
m Ihonsh only 500 shares Of New
outset the stock dropped from Isl, tho
opening figure. 70 Ia. the latter indicating
= loss over night OF % points. Subsequent
" the price recovered 10 16A
The panic I'm the Flower issues spread
% minor extent In other properties losses
running from TO IL points with many
of tho prime securities affected. After the
opening slump. the market turned upward
~ a lively rate under the influences os
enormous buying by the leading sunstan-
uaf interests in the street. Short cover
lhg assisted the riae. the bears taking
pfcfts az quickly M possibse. now that
yhey had succeeded In opening the market
Gown to an advantageous level All sorts
q costly miSsakes occurred among the
Trading element during the excitement. one
oroker suffering to the extent % over
WWo Another had big erder to hsiy
q fixed price and succeeded In executing
We commission at a lower level than tina
ngsir~ placed, thereby making profit for
me customer OF tau0
Specialists In the different stocks wers
overwheimed with orders and bought ard
sold 50 freely that MANY az them could
not tell what the net res Hts ~ the oner+
atoms were until the DAYS accounts were
settled. Dealings throughout the session
were or an enormous s--.te. transactions
TOR the first hour exceeding go on shares
CONFIDENT assertions by the Flower firm
y 70 their ability Ia proterE their secnri-
ucs and favorable exrressfcas from ether
reading financial interests caused n better
seeiinx az the morning progressed. and
Prices recovered violently al around The
fne. however, eliminated after sse erpear~
anse OF the bank statement. which was
construed ny some unfasoraSly and
VIGOROUS selling movement sc, in which
eottiHues4 "a ia