The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1899-12-24

The cash increase shown by the state
ment of 81, 732, 800, came as a surprise, in
view of the gold shipments, and the drain
to Boston. 1t is an evidence Of the hid
den resources brought out in such a crisis
as that of the past week. The item Of
loans can hardly be an accurate reflection
Of the net result Of the drastic contrac-
ton Of the week. The smallness of the
decrease is due to the average" system
of computations. What hapuened in Wall
Street this week had been a long time
brewing. Any one of half a dozen or
more causes might be cited. but any of
them or all Of them combined were more
properly but the elimination Of a long
series Of causes. which precipitated the
event. The whole matter may ne summed
up as Misrepresentation Among profess
sional SPECTATORS there Is process eX-
pressively termed 'pyramiding." Money
is borrowed with which to buy or mar
gin. when the price or the purchase price
is reckoned as profit and IS invested in
more purchases The profits thus REIN
vested help to advance the price. and the
paper profits thus amount up to enor-
nous proportions. But the demand which
has thus advanced the prices was pure
~ fictitious one. The capitalists &c not
call their operations pyrami5i1E. but the
persistent imitation in values OF Securi-
ties which went on for months had much
the same effect. Il has long been evident
that any selling 10 realize would deu~ess
the market and soma very wealthy COM
binations have persistentiv held their
stocks and ignored symptoms Of coming
striagency in the money market with an
obstinate optimism regarding the rep.eu-
iShmert % money supplies wHi-l results
have not justified Capitalists and bank
evs who had UNDERWATER tho securities
Of many Of the new Industrial ffctatio~s
found the market taken from them ard
prices Of the securities fl the open market
dropping Below the underwriting price.
With this bu~danSOue load 70 protect.
the growing StriHEeGcv ~ money ctr "
an avalanche n all classes Of securities
on the market ~ obtain needed funds.
It was such a realizing movement an a
large scale that II has long been sought
10 avoid a ths market was IN m c1uEi-
ton to stand t. Put once started and
the hears fully understanding the weak
ness u the condition and Offering prices
down with reckless holiness. the fabric
began n cruuh3e and seemed lettering
toward ruin on MoaGav- when the Ass~-
ciated Banks II New York. 5y concerted
action. offered szfI3J0oo ir loans and
broke The money rate watch had iu-u-es
II l. Ter cent q 6ay. eq15va lent - Is rar
arrum. in the frantic aiG5i-r u hard
pressed holders with the easing - the
money rate the panic was checked ar5
-hs proceedings reduced 20 some SORT Of
order. The market. hcvevs-. continued
fave-tSh All through tee week under cor
staut liquidation. which brought prizes
in ureav important stocks lower than tha
low prices 81 No1dEy.
Coming TO the more immediate causes
a ne srscrgativa collapse. + Is evident
trq. the duration ~ tse T-a-svzai var
and tire consequent cessation g re SOUTH
african gold supply vas counted uu-n
with confidence "a Se Iueh shorter thar.
i IS now evident. & VII be. London