The Savannah morning news. (Savannah, Ga.) 1900-current, 1901-05-10
4 PANIC ON CHANGE
TORNADO IN STOCKS IN WALL
STREET.
NORTHERN PACIFIC AT $1,000.
THEN A SUDDEN DROP BACK TO
5000.

The sudden Rise and Fall Unprece-
dented-Other Stocks Were Shaken
,r the Storm Like Leaves by an
Autumn BIast-Many Small Tim
~ hers Were Twisted and Torn, But
None of the Old Oaks Were Up
rooted-The Effort of the Big Syn
dicates to Control Northern Pacific
complicated by Mr.. keene's I'm
exuected Corner in the Stock,
brought About an Unparalleled
Losses Not Fully known Yet-Lon-
don Brokers Went Crazy Also.
New York, May 9-Bitter stress devel-
oned in Wall street by the second hour
of trading on the Stock Exchange to-day.
The violence of the commotion had spent
much of it's force, at least, for the time
being. when the chairmans 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. But
of actual fatalities none was recorded of
importance during the day. During the
hight of the panic rumors of insolvencies
were banded about more quickly than
they could be reported. But no confrma-
tons could be had of the intimations of
financial wreck. Those against whom the
rumors pointed refused even to show any
sign of distress and professed themselves
ready 10 meet all obligations. 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 large amount, as indi-
eating the abundance of resources at
hand.
But Notwithstanding these and similar
devices for keeping up credit and conf
dence, the fact was too obvious from the
crash of values on the Exchange that
credits and borrowing power were shrink
Ing al too prodigious a rate, not to leave
the mind of the whole financial world in
condition of intense strain. The indi-
cations 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
50 well protected by recent extensions of
the margins exacted in the market value
Of collateral over the amount of loans
placed that they had little to fear short
of an absolute wiping out'sof market
values. The shrinkage of collateral made
1t necessary for the banks in many cases
10 exact additional collateral during the
day, ard this added much to the distress
for time.
Prompt Action by Banks.
In the late dealings the principal banks
In the financial district agreed to form
pool and raise a fund to loan the money
rate down to per cent. on the Stock
Exchange. The bid for money had been
run up to 60 per cent. and was threaten
ing to keep alive the panic. The dozen
banks quickly came to an agreement to
raise $l600O,000 with implied willingness
TO increase the sum If necessary. There
were very heavy loans placed also by in
dividual banks. ranging in some cases to
s25OOOOOO and $4,000, 900. Through the early
part of the day bankers exacted the mar
ket rate for loans But with the grow
ing need to suppress the panic, they Of
fered the rate down to 6 per cent. Old
customers of the banks were not charged
over per cent. at any time, but when
outsiders came in asking for new loans
the law of supply and demand was al
lowed to run it's force.
Scenes of the Panic.
The state of excitement was very ap-
parent all through the financial district
ell during the period of panic, but there
were few sensational scenes. Now and
tnen a white-faced woman would peer
froln cab outside brokers' office and
would be driven off in a fainting condi-
uon after receiving a message from the
interior Wherever any near approach
could be made to a ticker or to board
on which quotations were posted, there
were great throngs of excited spectators
elamoring for a view of the course cf
'he market. But the real stress of the
occasion came upon men who were shut
up either in their private offices or those
Of brokers' or who were struggling and
even lighting on the floor of the EX-
ehange. The outside country could obtain
nltle idea of the actual occurrences on
the Exchange, as the brokers are remote
rom the public galleries in their tenn
porary quarters in the Produce Exchange
ana are half shut off from view by the
sMteen-foot wall. In the brokers' offices
edt many men who were reduced to abb
soute ruin as result of fifteen minutes
proceedings on the Stock Exchange.
sudden wealth Wiped Out.
some Of these have been made opulent
within few weeks past as a result of
tne unparalleled rise of prices. With the
uue gambling spirit they have replaced
op their winnings in new ventures on
.scn successful turn. To-day's drop
therefore, wiped them all out. In many
.ases one could see the gamblers forti-
.uae with which the chances of gain were
ssCcepted. But the glittering attraction Of
s ols market has brought into 1t con-
..entiy Increasing assortment of more
'au and inexperienced spectators; men
1nu women who have brought long stand
e hordes from secret places and from
,lnss bank deposits with the determi-
,soh 10 make one successful stroke and
o 9n retire with the proceeds. The dem
chssIauons from this class which In
,i-tes many women spectators, fur
,,eu the hysterical scenes and sensa-
'ohs Of the day.
heEuInr Employees Were Cool.
AL Au classes Of employees in the Stock Ex-
nsanse district were under tremendous
,sssure throughout the day. The i'm
sesslon produced by contact with these
AZ. que to their GOODNESS and nerve un-
81 tne most trying and exciting clrcum-
nSVes Brokers, messenger boys. tele-
ue boys clerks and the like, have
W. during the last few weeks to
A. little time in demonstrations. They
NJ, ulngs in the quickest and shortest
Timer :, and so made things go smoothly
no,osy at period when lack Of coolness
Sons NV' " '"'