The Middleburgh post. [volume] (Middleburgh, Snyder Co., Pa.) 1883-1916, 1901-05-23
A WALL STREET Panic
Averted After One Day Of the
Widest Trading.
CORNER IN NORTHERN PACIFIC

The Impelling Force in the Threat
eninE Condition of ARairs-The
Stock Sustained by Powerful Inter-
ests-Bankers to the Rescue.
New York, May 10.-The threaten
Ing condition Of affairs which develop
ed In the stock market Wednesday cul
minated yesterday in one OF the Sc
verest twists ever experienced in Wall
street. The corner in Northern Pa
cific was the impelling cause of the
crisis, owing to the threat contained in
the ruinous terms forced upon the
shorts in the stock that disastrous
liquidation would be forced at other
points. Strenuous efforts were made
by the most powerful financial inter-
ests in the country to avert the threat
ened trouble and almost unlimited sup
porting orders were placed in the mar
ket for the opening. in anticipation Of
the heavy selling which was to come.
When Northern Pacific began selling
at 200 and 800 and 500, and even as high
as 700 on regular transactions and at
1000 for cash, the appalling possibili-
ties of the forced covering Of the lar
gest shortages at those terms weaken
ed the whole market, and prices crum-
bled away with the utmost violence
during the second hour.
The volume Of the blocks unloaded
and the reckless disregard of the price
which they brought were without pre-
cedent in the memory of the Oldest
trader. Before any check had come to
the tremendous liquidation Delaware
and Hudson had lost SO points, Man
haitian 80, Union Pacific 3S. Rock ISL
and 35h, Atchison 32k, St. Paul 301a.
Missouri Pacific 80 and long list OF
other stocks from to 30 points. Then
it became known that the contending
interests in Union Pacific would not re-
Quire delivery Of the stock, and the
quotations fell back to 900. Then the
bids Of bargain hunters raised other
stocks to almost normal prices.
A statistical review of the transac-
tions in the stock market yesterday
shows that at low water mark of prices
Al principal stocks had shrunk to the
tremendous figures Of $685., 1888, ,407. This
shrinkage. however, is largely Offset
by the recovery Of the market towards
the close.
The market became much Quieter
during the latter part Of the day, but
the extreme feverishness and nervous
ness continued. Even the action Of the
bankers by agreement In lending $16,-
100000 on the exchange at 6 per cent
failed to relieve the close from such
very erratic movements and renewed
bad breaks In prices. The extension
Of shrinkage in the value of securities
and the corresponding decrease in
credits made money very stringent,
and 60 per cent was bid at one time by
those seeking accommodation. The
action Of the associated banks forced
the rate down to 6 per cent.
The state OF excitemr g very an
parent all through the tial district
during the period Of the panic, but
there were few sensational scenes
Now and then a whitefaced woman
would peer from cab outside a brok-
er's Office and would be driven of in
q fainting condition after receiving a
message from the interior.
In the brokers' offices sat many men
who were reduced to absolute ruin as
result Of Is minutes proceedings on
the stock exchange. Some of these
have been made opulent within a few
weeks past as a result Of the unparal-
leled rise Of prises. With the true
gambling spirit they have replaced all
their winnings in new ventures on
each successful turn. Yesterdays drop,
therefore, wiped them all out.
It was a very notable fact that
throughout the most acute period Of
the days disturbance there was moth
Ing heard to indicate doubt of the
sound and prosperous conditions Of in
dustry and business at large In the
country.