The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1901-05-10
Under its Influence All the
Market CrumbIes.
AND RUIN HAS CONE TO MANY TRADERS
The Heaviest Blow Falls on the.specu-
lative Glass. Banks Have Been
Well Protected. Call Money at
so Per Cent. Banks to
the Rescue.
(By the Associated Press }

10y the ASSOCldleO5 TI6So.J
New York, May 9.-Bitter stress devel-
oped in Wall Street by the second hour
of trading ON the Stock Exchange today.
The violence of the coInmotion had spent
much Of its force, at least for the time
being, when the charman's gavel fell
announcing the close of the days pro-
ceedings. The casualties were great and
the field of battle was strewn with the
wounded and may be with the dying. OF
the actual fatalities none was recorded
of Importance during the day. During
the height of the panic rumors of insol-
vencies were banded about more quickly
than they could be reported But no con-
firmations could had OF the intimations
of financial wreck. Those against whom
the rumors pointed refused even to show
any sign of distress and professed them
selves ready to meet all oligations. In
more than one instance the answer to
these rumors was for a representative of
the house to go upon the Stock Exchange
and place loans TO a large amount, as
indicating the abundance of resources at
hand, but Notwithstanding these and sim
liar devices for keeping UP credit and
confidence, the fact was too obvious from
the crash of values on the exchange that
credits and borrowing power were shrink
ing at too prodigious a rate, not to
leave the ind of the whole financial world
in condition of intense strain. But the
indications at the close of the day were
strong that the principal damage had
been wrought upon the speculative class
or upon holders OF securities on margin
for whatever purpose. The banks have
been so well protected by recent extern
sions CT the margins eXacted in the nar-
ket value of collateral over the amount
Of loans placed that they had little to
fear short of an absolute wiping out of
market values.
The shrinkage of collateral ado it he
cessary for the banks in many cases to
exact additional collateral during the day
and this added much to the distress for
a time. But in the late declines the rrln-
cipal banks in the financial district agreed
to form a pool and raise fund to loan
the money rate down to six per cent en-
the Stock Exchange. The Did for money
had been run up to sixty per cent and was
threatening to keep alive the panic. The
dozen banks quickly came to an agree
ment to raise $16,0 ,000, 900 with implied Will
ingness to increase the sum ii necessary
There were very heavy loans placed also
by individual banks, ranging i'll some
cases to $25,000,0 900 and $50, 900, 400.
Through the early part of thes day bank
ers exacte1 the market rate for loans
But with the growing need to suppress
the panic they offered the rate down to
six per cent. Other customers OF the
banks were not charged over six per cent
at any time but when outsiders came in
asking for new loans, the law of sup
ply and demand was allowed to run its
force.
The state of excitement was very ap-
parent all through the financial district
during the period of the panic, but there
were few sensational scenes Now and
then a white faced woman would peer
from a cab outside a brokers office and
would be driven off in fainting condi-
tion after receiving a message from the
interior. Wherever any near approach
could be made to a ticker or to a board
on which quotations were posted, there
We're great throngs of excited spectators
scrambling for view of the course of
the market. But the real stress of the
occasion came upon men who were shut
up in either their private offices or those
Of rokers, or who were struggling and
change. The outside country could obtain
little idea of the actual occurrence on
the exchange, as the brokers are remote
from the public galleries in their tempor-
airy quarters in the Produce Exchange and
are half shut off from view by the sixteen
foot wall. In the brokers offices sat
many men who were reduced to absolute
ruin as a result of fifteen minutes pro-
ceedings on the Stock Exchange
Some Of these have been made opulent
within 2 few weeks past as a result of
the unparalleled rise of prices With the
true gambling spirit they have replaced
al their winnings in new ventures on
each successful turn. Todays drop. there
fore, wiped them all out. In many cases
one could see the gamblers fortitude
with which the chances of gain were ac-
cepted. But the glittering attraction Of
this market has brought into it con-
stantly increasing assortment of more
staid and inexperienced spectators; men
and women who have brought long stand
ing hordes from secret places and from