The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1901-05-09

| In Northern racine was 50 ulSlfeSSlHS
| an example as to keep the bears in a
| timid frame of mind and they hesitated
to attack 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 50
large that the bears took courage and at
tackled the market after midday and Sc
cured rich returns. AS the recession in
prices reached the ten point line the de-
cline gathered force, showing the dis
lodging of long lines of long stock by
the wiping out Of margins scrutiny Of
a stock table will show the large number
OF stocks whose declines extended to
between ten and twenty points, with the
resulting wiping out of the ordinary mar
gin The chaotic condition into which the
market was thrown became alarming in
TIE afternoon, but the determined support
which developed and the resultant rail-
lies, which reached as much as eight
points in one or two instances, took away
the effect to a partial extent of the dis
orderly drop in prices and. even induced
expressions from some of the more conf
dent bulls that the health of the mar
ket was greatly improved as result of
the days happenings. The apparently I'M
limited buying orders which appeared in
United States Steel preferred, when the
decline had reached twelve points and the
resulting rally of eight and a half points,
gave some of the bull spectators the
courage to claim that the days reaction
was really engineered by the powerful
financial interests which have been be-
hind the bull market throughout with a
desire to shake off weak followers and
that it was not out of proportion to the
unprecedented advances which had pre-
coded it, TO the unequalled conditions
which at present obtain in this country,
and 20 the prodigious dimensions of the
market and of the forces which have
been at work in it. It is the contrary
view that collapses such as that of to-
day do not tend to attract new buying
demand such reasoning as that stocks
are more attractive at lower prices. Any
one seeking to explain today's movement
will have to go back over period OF
many weeks. and for every suggestion
of great financial combination or con-
sclidation he will have 10 suppose a deep
seated doubt or apprehension such as
was shown by the disclosures of this
morning in Northern Pacific. 1t came
with chilly shock to the speculation
that the country's great financial forces
working in accord to secure a community
of interests in the whole railroad world,
were in fact arrayed against each other
in measures of bitter retaliation and an
tipa thy. The Burlington deal on which
such far reaching conclusions have been
based by the spectators, was seen to be
in jeopardy.
it 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 hold
ngs to endanger their control This eX-
PLANTATION of the competitive buying which
has induced some of the recent sensa-
tional advances threw doubt upon the
whole series of ruTnoIs of plans for great
consultations and trans continental COM
binations among the railroads. In other
words the broad intimation was carried
by the disclosures growing out of the |
Northern Pacific development that the re-
cent great buying OF stocks was for the |
most part wholly speculative and with
out the supposed basis in investment
purposes. Add to this the growing con-
strictions of the money supply, continued
Unsuitable demands from the stock spec
ulation, inroads upon the narrow bank
surplus by the taking up OF the revenue |
surplus of the Government a further
shipment Of gold to Europe today, and |
growing uneasiness among money lenders
as to the stability of wales of the securi- |
ties which they hold as collateral and
the delcacy of the position is easily |
seen. 1t is not surprising, therefore, that |
the shock of the Northern Pacific episode |
coming upon this situation toppled prices |
over. Northern Pacfc's sky rocket |
course this morning to 1927. compared |
with 14314 at last nights close and 1872 !
for the London parity this morning, is |
almost unprecedented for short time
movements in the local stock market. This |
stock was up to that figure and back to
the opening figure of $50 within three
minutes. 1t went as low as 144b after
ward and as high again as $50, closing at
$50. The close corner into which the |
shorts were crowded of course explained |
this movement. Among the severest suf- |
ferers in the afternoon slump were men
toned st. Paul, which fell 1874, Union |
Pacific IN, Rock Island IA, Missouri Pa
cific Is, United States Steel preferred H. |
Delaware and Hudson 10, Amalgamated |
Copper 1914, Pullman Palace Car 117s |
Illinois Central II, Burlington 1875. Brook
lyn Rapid Transit 1912, Kansas and Texas I
10. Western Union 10. and other stocks |
all the way up to ten points. The final |
rally reduced most of these losses con
siderably, but the closing showed specu- |
lative sentiment in much disorder and |
prices were breaking anew at some points |
while rallying at others.
The excitement in the stock market |
distracted attention from the bond mar
ket, but prices Went off here in sympathy |
oil laap val
Geo 000.
United States old as advanced Is
per cent ON the last call
The total sales OF stocks today were |
2461 100 shares. including the following:
Atchison. 135,GO0; Atchison preferred 5S, |
200; Baltimore and Ohio, IA. i00 Cana |
dian Pacific, 20 .400 Chesapeake and ohio
1880 Chicago, Burlington and Quincy |
"a 300; Chicago, Rock Island and Pacific. !
$4,000; Colorado Southern, 500; Erie a.
l00 Erie first nreferred : 900, uEuGis |