The morning Astorian. [volume] (Astoria, Oregon) 1899-1930, 1901-05-10

resentative OF the house to 20 upon
the stock exchange and place loans to a
large amount, az indicating an abun-
dance OF resources at hand
But. Notwithstanding these and sim
liar devices for keeping up credit and
confidence. the fact was too obvious Of
crash Of values on exchange, that
credits and borrowing power were
shrinking at too prodlgious a rate to not
leave the mind Of the whole financial
world in a condition Of intense strain.
But the indications at the close OF the
day were strong that the principal dam
age had been wrought upon the specu-
lative class or upon holders OF securi-
ties on a margin, for whatever purpose.
In the late dealings the principal
banks in the field agreed TO form a pool
and raise fund to loan money at a
rate down to six per cent on the stock
exchange. The bid for money had been
run up TO so per cent and was threat
enlng to keep alive the panic. A dozen
banks came to an agreement 10 raise
s1s.0OO.0O0 with implied Willingness to
increase the sum II necessary. There
we're very heavy loans placed also by
individual banks, ranging in some cases
to S25.O0O.0O0 and s3O.0O0,ooo.
Through the early part OF the day the
- faJ ka
loans. But with the growing need 70
sunpress the panic they offered rate
down to six per cent.
The outside could not obtain the llm-
Its Of the actual occurrences on the
exchange. In the brokers offices many
men sat who were reduced to absolute
ruin as the result Of fifteen minutes
proceedings on the stock exchange
Some Of these have been made Opulent
within a few weeks past as the result
Of the unparalleled rise in prices.
With the true gambling spirit they
have replaced all their winnings on new
ventures on each turn. Today's work
therefore. wiped them all out.
But the glittering attraction Of this
market has brought into il a constant
ly increasing assortment Of more staid
and inexperienced spectators; men and
women who have brought long-standing
boards from secret places and from saw
ings bank deposits with the determlna-
ton to make one successful stroke and
to retire with the proceeds. Demon
strations from this class. which in
cluded many women speculators, fur
nished hysterical scenes and the sen
sations of the day.
There was strong feeling this morn
ing before the proceedings had COM
menced on the stock exchange that a
panic could be averted only by the
strongest measures and with great diff
Guilty. The fact was apparent that the
corner in Northern Pacific was still un-
broken.
The first quotation for Northern
Pacific ran quickly up to $500 per share
and then to $500. to $500 and then to
500 per share on regular transactions
and $1,000 per share for cash. The cash
price paid meant that the unfortunate
shorts who were unable to borrow stock
last night for delivery today had to pay
whatever cash price the engineers OF
the corner chose TO ask for it. The fig
ures indicated in these transactions
meant ruin for very large outstand-
ing interest in the stock.
AS prices began TO go down the dis
position to buy decreased and the de-
termination to sell seemed to grow in
geometrical ratio. Such a shoveling out
OF stocks as occurred during the second
hour Of today's stock market was new
er seen before. Figures alone suffice
to Indicate the Proportions Of the drop.
In Delaware and Hudson the extreme
decline was SO points; Manhattan, SSS;
Rock Island. S5h; Union Pacific, 3S:
Atchison. S1h; St. Paul. Soh; Missouri
Pacific, 80; Southern Pacific, 2s%: U. S.
Steel pfd,, 2sh-
While range Of hve to thirty points
would cover the collapse in nearly
every active stock in the exchange, in
the outside market the stress OF the
demand for funds was shown by the
drop in the price Of Standard OH Of
III points over night.
After the turn in the market came.
which II did about noon. some notice
able selling Of bonds still continued and
this was explained as being due to
the wish to secure funds to buy stocks
at the attractive level of prices to which
the market had fallen.
1t was a very noticeable fact that
the most acute period Of to-
days disturbance there was nothing
heard to indicate a doubt of the sound
and prosperous conditions Of industry
and business at large In the country.
The stock market collapse was attribut-
ed exclusively to overspecu!ation and
over extension Of credit upon stock
which 1t was not designed to keep but
to sell at higher prices. The stock which
caused the collapse was the Northern
Pacific corner, without dispute.
The announcement later in the day
Of measures for the relief of the shorts
and the relapse in the price OF stock to
800 allayed the Generalization almost
Announcements by ]. P.
Morgan & Company and Kuhn. Loeb
& Company, who respectively represent
he two contesting parties In North
ern Pacific, that they would not require
deliveries Of stock today meant res
spite Of one day at least from ruin for
the shorts in the stock. Later in the
Law Street and Norton announced that 1