The age-herald., 1901-05-04
FURRY IN MONEY RATE CAUSES PANIC Over-Extended Speculative Ac- counts Stopped by Lenders MARKET GOES TO PIECES Big Blocks of Stock Sold and Prices
 Fell From 4 to 10 Points
 In Strongest

New York, May 3.-This afternoons set back in prices was the most violent which has occurred since the present phase of the bull market set in. It was absolutely without cause in news of any thing that would do harm to intrinsic values of securities, commerce or indus try. A furry in the money rate coming on over-extended speculative accounts in- dicates the whole situation in a nut shell. The danger has been obvious that the speculation was over-running the bounds of reason and safety. The buying was admittedly without motive or informa- ton beyond the hope and belief that there would be enough future buyers to lift prices to a normal position, and there were plausible theories of reports and buying to change control. But in these also the horde of speculators. who have trailed along heretofore, precipitately to- day entered the movement of this kind and was a very large element in the buy ing. Increasing trepidation has been felt among commission brokers and loaners who assume responsibility for specula- tive buyers, that many of this class were stretching their resources unduly, de- pendent as they are on the maintenance of the prices of securities to keep their credit good. As consequence, there has been increasing pressure from commits sion houses upon their customers to take their profits and Tighten their loads. But the buying demand has been constantly reinforced by newcomers, and the inroads upon the money market extended The preliminary figures of tomorrow's bank statement made 1t clear that merely weak showing can be hoped for from that statement, and the bankers began calling loans to recuperate their position. The call loan rate ran up in consequence to per cent, and the speculators began to manifest acute distress as they found themselves forced to look about for new accommodations. The extreme sensit1Ve- ness of the situation was manifest in the violence of the reaction by what was really a moderate hardening in the money rate. The delicacy of the situation was enhanced by the furious speculation this morning in Atchison, St. Paul, Rock Island, Baltimore and Ohio, Missouri Pa cific and number of stocks influenced by these movements. Advances of 3A to 3Js had resulted during the morning amongst these stocks, St. Paul being par ticularly buoyant.
 When the pressue came upon the mar
 
 were most acutely affected by the selling Enormous blocks were unloaded on the decline at successive drops of hal1 to one point through many points decline. The drop in Atchison reached 9A, st' Paul. 9sa Rock Island. Sas; Northern Pa cific, & Baltimore and Ohio, 7A; Union Pacific, TBS; Missouri Pacific, 6A; New York Central, 6; Illinois Central, b; Wa bash preferred, 5s4; Kansas and Texas preferred, 4as; Atchison preferred, A. Sugar, IA and a large number or other stocks between 1 and points. The bears were so eager to take profits after their long abstinence that their demand to cover caused rallies among these stocks of from to 4A points. But the rallies were not well held and prices went off again in some cases to the lowest. The closing was feverish and unsettled, and the undertone continued weak. The pre- liminary figures for tomorrow's bank statement indicates a gain in interior movement of less than s2000.00O to offset the loss to the sub-treasury, which was reduced in today's statement by the pay ment of government interest checks and bond redemptions to $4,715000.
 Bonds gave way in sympathy with stocks, but there was no great activity in the general list Total sales, par value. $5 755, 600 United States 3s and 5s de- clined E and the new As and refunding 2s & and the refunding 2s coupon 14 per cent of the last call
 New York Stock Market.
 By Private Wire to Murphy & Go.