Richmond daily palladium. [volume] (Richmond, Ind.) 1876-1904, 1901-05-11
Wall Street Taking On Its
Normal Air After the
Storm.
ATMOSPHERE CLEARED
Violent Agitation OF Stocks On Thurs
day Had Much the Effect Of
/; Summer Thunder Storm.
Growing Confidence On Change Pro
duces Q Feeling Akin to
ElatiOn.

New York. May 11.-wan stree
emerged from its gloom yesterday and
with growing confidence In the day
manifested something like buoyan
elation. Prices Of stock went up witt
rush, at the last closing at about tn,
top. and with the net losses left afte
Thursdays session pretty largely re
covered. Early in the day the Off
ctal announcement was made that tn.
sheets OF all the members of the ex
change had been cleared perfectly, anc
that all their checks had been hon
Ored. This relieved the last feeling
or apprehension, and the feverish and
earnest signs which were manifest in
the stock market during the first hour
disappeared. Things quieted down
into steady condition of business
such as has not been witnessed iu
Wall street for many weeks.
MEANS TO THE END.
The measures taken over night to
clear the situation left little to fear.
The agreement to allow the shorts in
Northern Pacific to settle at 100 really
went to the root of the crisis and
wiped out the impelling cause of
Thursdays panic. The announcement
by the banks that Thursdays loans,
which had been provided by agreement
among the leading institutions of the
street, would not be called at once,
kept the situation free from additional
tension. With the threatening condi-
tfons removed rebound In prices was
natural and In evidence. The extent
to which 1t ran was. however, "A sur
prise. and was attributed to various
causes. There is no doubt that among
those who We're heavy losers In Thurs
days slump were many OF ample re-
sources. who viewed the situation with
sporting instinct. and determina-
ton TO recOup losses by following the
market. 1t was the popular belief that
some Of the Western potentates who
were admittedly forced Ito walk side
ways" during a portion OF Thursdays
events. were again In the market yes
terday afternoon In a bold attempt to |
retrieve their losses. The obvious
leadership of the movement Of Union
Pacific and the Southwestern group
gave ground for the conjecture that 1t
was based on benefits expected to ac-
of Northern Pacific; a control which
was still stoutly claimed, but as en-
phatically denied by the Hfl Morgan
parties. 1t was remarkable that the
breaking OF the corner in Northern Pa
cific by the settlement with the shorts
at $50, brought almost no stock upon
the market. But II is evident that the
contesting parties in Northern Pacific
are not yet prepared to let go OF
single available share Of the stock.
The settlement with the shorts Is in
progress at the offices. both of Kuhn,
Loeb < Co and J. r. Morgan \ Co..
and II is probable that only the com
pletion OF the settlement will reveal
how much OF the purchases of stock
made by the two parties within the
last week can he delivered
SUMMARY OF THE SITUATION.
Wall streets speculative bubble.
which has been In course of imitation
for weeks. was pricked and the rides
cent hues OF stock gamblers winnings
disappeared with a pop In a cloud of
emerges that the vanishing spray rep
resents practically these speculative
winnings. while the solid earning pow
ers of rehabilitated railroads and the
prosperous business and trade in all
branches is not appreciably affected.
As il the case with all booms. the col
lapse was caused by an accident. This
was the corner In Northern Pacific
which has emerged from its mysteries
and stands disclosed to public view III
its principal facts and bearings. 1t is
the nature of a speculative boom that
II contains within itself no corrective
force. but rather the material for Its
own growth and excess. Buying for a
riae In itself induces that rise and fur
nishes the profits for renewed buying
and renewed advance until the world
Joins the gathering horde of specula
tors to share in the sudden fortunes
and all available credits are drawn or
TO secure holdings of stocks None oi
these holdings are to keep, and the
only incentive to buying is the hops
of further rise When an acciden
happens to endanger the continuance
of the rise the demand therefore ceases
absolutely When holders attempt Il
sell first to take profits. then to saw
themselves, there are no buyers
Prices decline and the credits on which
= holders depend shrink. and they mus
sSN-- The shrinkage of the value o
securities endangers the safety o
Aoans for which they serve as coilat
eral. and bankers must be repaid
Money must be had on any terms .
avert ruin. stocks are sold withou
regard to price. and species OF PAM
ensues. That is what happened thi
week on the Stock Exchange
wall street Quiet.