New-York tribune., 1901-05-10
BONDS.
THE DAYS OPERATIONS IN STOCKS

THE DAYS OPERATIONS IN STOCKS.
Conditions that led to yesterdays panic in the
stock market were not significant of any change
In the general business situation. The country
IS lust as prosperous to-day as IL was when
rrIces were selling from twenty TO fifty points
above the current level, while the actual worth
Of securities is just much as II was before the
panic began, II not more. The enormous de-
clines throughout the list Were due entirely to
local conditions. aggravated by the war for con-
troll in certain Of the Western railroad proper
ties. The corner in Northern Pacific stock pre-
cipitated the decline but other factors were In
part responsible for the pronounced falling off
tn securities quotations. The blame however.
according 10 the Wall Street point OF view, must
be placed entirely upon the shoulders Of those
interests who have been chief influences in the
recent rise in values Conditions created by the
Northern Pacific corner eliminated yesterday
when the stock advanced 10 $1,000 a share. At
this price cash sales only were made, and after
u O'Clock all dealings in the stock were con-
Quoted on this basis Brokers simply refused TO
take orders either 10 buy sell the stock. The
interests that control the available floating sup
ply of Northern Pacific stock decided not 10 en-
force at once deliveries OF the shares due 10
them from the badly squeezed short interest.
ed in an easier feeling throughout the Street
After the first hour Of trading stocks began
to decline from 10 to 80 points. with heavier
Hudson declined co points. while ST. Paul went
down 30 points: Louisville and Nashville 20
points; Atchison common. %; the preferred. 2s
Missouri Pacific. 30; Atchison. &C. and Man
haitian. 36. In the list Of cheaper priced
curities extensive declines were made by Chesa-
peake and Ohio, Erie, Southern Pacific and
Texas and Pacific. Commission houses nquidat-
ed a greater part of their marginal accounts
and in many Of the smaller houses business was
practically suspended after the first two hours
Of trading. The advance in money rates 10 ex-
orbtant figures contributed to the general un-
sasiness in the Street. but this element OF weak
ness removed in the afternoon by an agree
ment among number OF prominent bankers to
supply all the money desired at market rates
II is worth noting that this band OF philan-
thropists made their first loan at go per cent
From this rate the price rapidly declined to 6
per cent. The banking syndicate did not in
2ude the National City Bank This fact caused
considerable comment, owing TO the close rela-
lions between that institution and the so-called
Morgan-Hill aggregation Of inanciers. The
enormous losses sustained in the Northern Pa
cihc gamble led TO various rumors Of i'm
pending trouble among well known foreign and
local banking houses, but all firms were appar-
entity taken care Of
Al he low level OF the day. which was estab-
hshed around noon extensive rallies took place
United States Steel stocks. which declined ~
points for the common and p for the preferred
recovered the greater part Of the loss before |
O'Clock. Delaware and Hudson. which dropped
10 lO5, rallied 10 $50, closing at a net loss for
the day Of II points Atchison common closed
at Coz, against the low price Of AZ while the
preferred closed at 81, an advance OF 21 points
from the low level OF the day. Burlington went
10 l1s but closed y points higher while ST
Paul touched l34. with net loss for the dav
Of 2312 points Rock Island sold at l25 and re-
covered p points, 10 146. In the local traction
group Brooklyn Rapid Transit was compara-
lively firm, its maximum loss amounting TO less
than 10 per cent. with net loss Of only little
over points. Manhattan sold down TO So a
decline OF nearly 40 points compared with the
preceding days last quotation. On the rally the
stock recovered good part of the loss. closing
only u points under the best price OF the day
Metropolitan suffered net loss of points. In
the bond market transactions outside OF the
Union Pacific new collateral bonds were ex-
tremey light, brokers apparently having no
time and no inclination 70 deal in railway mort
gage issues.
The enormous declines attracted an army of
bargain hunters 10 the Street and the raniditv
OF the recovery was due in great part. 10 the
heavy buying by this element After the re-
qulrements OF these buyers had been satisfied
there was a further tendency toward reaction
and IL was generally believed that prices uvou,a
seek lower level before permanent innro,e-
ment could be expected. market cannot re-
cover in day from panic, and there 70 NO
reason 10 suppose that the result OF yesterday,s
panic will be in any way different from ths =.
suits OF panics in the past All the leaa,nv
capitalists who are supposed 10 be interested an
the night between the Northern Pacific ans
Onion Pacific interests were vehementlv cr,,,-
cised and denounced by the rank and file %.
Wall Street, and the attitude OF q certain la,s.
Wall Street bank toward the money narke, a,
the last few days caused great amount Of aa-
verse criticism I'm commission house circles Tha
Wall Street situation certainly has received =
severe blow from the obstinacy and iealousv =,
certain large railroad and financial in.eres,s
and 81 the moment fl is hard 10 predict q s,,c
cessfui termination Of any OF the proposed deals