The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-05-09

I NEW YORK, May S.-The stock mar
ket today offered the novel spectacle of
bear panic and bull panic in progress
side by side. The bear panic in Northern
Pacific was the impelling cause of the
demOraliZed rush to sell other stocks
which was held in check for a time after
the astounding opening in Northern Pa
cific, but which gained almost panic force
in the late trading. Prices were not top
pied over as a direct result of calling of
loans and forced liquidation such as
often culnlinate a period of oVer-Specu-
lation, although there was a very gen
eral broadening of margins and added
severity in the scrutiny of collateral as
was inevitable in the uneasy conditions
prevailing, but it was evident that the
holders of long stocks We're holding their
stocks tenaciously and were waiting to
be actually forced out The punishment
which was being inflicted on the shorts
in Northern Pacific was so distressing an
example as to keep the bears in a timid
frame OF mind and they hesitated to at
tack the market. The support which
came in on the opening dip helped to en-
courage the bulls and intimidate the
bears, but the liquidation seemed so large
that the
BEARS TOOK COURAGE
and attacked the market after mid
day and secured rich returns. AS
the recession in prices reached the
10 point line, the decline gath
ered force, showing the dislodging of
long lines of long stock by the wiping
out of margins. 4 scrutiny of the stock
table will show the large number of
stocks whose declines extended to be-
tween 10 and % points, with the resulting
Wlping out of the ordinary margin. The
chaotic condition into which the market
was thrown became alarming in the aft
ernoon, but the determined support
which developed and the resultant ra'
lies which reached as much as 8 points
IN one or two instances, took away the
erect to partial extent of the disor-
oerly drop in prices ana even induced ex-
press1onS from some of the more conf.
dent bulls that the health of the market
was greatly improved as a result of the
days happenings. The apparently un-
limited buying orders which appeared in
United States Steel preferred when the
oecllno had reached II points and the
resulting rally of S1@ points gave some
Of the bull spectators the courage TO
claim that the days reaction was really
engineered by the powerful financial in
terests which have been behind the bun
market Throughout with a desire TO
shake off weak followers and that IT was
ell advances which had preceded il to
the conditions which at present obtain in
TINS country and to the prodigious di-
menSlons of the market and of the forces
Whlch nave been at work in it. Anyone
seeking to explain today's movement WI
have to go back over a period of manv
weeks and for every suggestion of a
great financial combination or consol da
ton he will have to suppose a deep-s4at-
or al,o
shown by the disclosures of this morn
ing in Northern Pacific. 1t came with a
/ chilly shock to the speculation that the
countrys great financial forces, suppos-
edlY working in accord to secure a COM
mun1ty of interests in the whole railroad
world, were in fact arrayed against each
other i'll measures of bitter retaliation
and antipathy. The
BURLINGTON DEAL, OFF
which such aching conclusions have
peen based by the SPECTATORS was seen
to be III jeopardy. 1t was learned that
the level to which prices had attained
had induced insiders, presumably best
posted on the value of. their properties.
to sell sufficient holdings to endanger
their control. This explanation of the
competitive buying which has induced
some OF the recent sensational advances
threw doubt upon the whole series of RI
mors Of plans for great consultations
and transcontinental combinations
among the railroads. In other words. the
broad tntimation was carried by the dis
closures growing out of the Northern
Pacific development that the recent great
buying of stocks was for the most part
wholly speculative and without the sun
posed basis in investment purposes. Add
to this the growing constructions of the
money supply, continued Unsuitable de
mands from the stock speculation. in
roads upon the narrow bank surplus nv
the taking up of the revenue surplus Of
the government a further shipment of
gold to Europe today and growing IN.
easlness among money lenders as to the
stability of values of the securities
which they hold as collateral, ana The
efficacy Of the position is easily seen. If
is not surprising, therefore, that the
shock of the Northern Pacific enisoda
coming on this situation, toppled prices
over. Northern Pacifcs sky-rocket
course this morning to $50. COMPARES
with 1887 at last nights close and 1s2
for the London parity this morning is
Continued on Seventh Page.