Waterbury Democrat., 1902-10-04
YESTERDAYS WALL ST SCARE
The Rumored Clash of Official
 Caused a Panic.

|
 as It Has Not Been Shaken in Years.
 New York, Oct 4.Tempest reigned in Wall street for twenty minutes yes terday. Prices on the stock exchange melted, the losses ranging from S3 to S5 a share in as many minutes. Bank CTS were thrown into consternation, ana brokers were driven almost wild py the queries of their clients, who want | ed to know what kind of a chill had shaken the financial center. AS suddenly as the storm had come it passed away. Prices of shares rose as rapidly as they had fallen, the l bankers breathed easily once more, and brokers consoled their customers, at least those whose margins had not been I wiped out, by saying that lne furry had been entirely due to mistake.
 To appreciate the. brief panic-for panic it must be called-the speculative situation in Wall street must be ex- plained.
 In the first part of the week intense alarm had been felt in banking and speculative circles because of the strain l ed condition of the banks. On Mon day the secretary of the treasury came to this city. It was thought he had come to announce plans to relieve the strain or at least to assure the bank CTS that he would step in the breach to prevent panic.
 But, to the disappointment of the f- nancial community, hour after hour passed on Monday without word from Secretary Shaw. Prices of shares crumbled and money rates scared, loans being made as high as B per cent 2 year. Late on Monday night, however, Secretary Shaw announced the plans he had adopted to relieve the money strain. Among them was his notice to abrogate the rule requiring national banks to carry cash reserve against government deposits.
 On Tuesday Wall street breathed easy again because the secretary's ac- ton had released $32,OOO,OOO cash from the legal reserves, thus enabling the banks to expand credit to the total of $l3O, ,OOo,OOO. Prices of shares rose and money rates declined. On top of this came President Roosevelts action. which gave hope of an end to the coal strike Y
 " el1Ase SlIEGl uduA EeIItGQ dOWn to await the outcome with hope and con- ndence, when a report came from Wash1ngton that sent the financial community 'up in the air.''
 At 2:30 o'clock the news tickers slow ly spelled out this dispatch from Washington:
 !, Washington. Oct I. Comptroller of lne currency Ridgely yesterday over e in11# rS1Z Ill authorizing the national banks to release the 25 per cent reserve they nave heretofore been required to hold against government deposits. Tn the case of certain bank, which had laKen advantage of the secretary's per mission, MT Ridgely has held up the pank statement and has refused to ap- prove the same until the 25 Der cent reserve shall have been recovered. He takes the ground that all such matters are in the exclusive control of the comptroller, and the secretary was without authority in giving this per- mission to the banks The result will De the withdrawal from the money market of all reserve funds thus re leased from the various banks that had ayailed themselves of the secretary's offer"
 Secretary Shaw overruled! The banks compelled to hold 2 5per cent cash reserve against government de- posits! 100 per cent money and forced sales to pay off loans that the bank CTS surely would call
 Without a moments hesitation room traders on the Stock exchange threw over their holdings and prices fell. St Paul, for example, which had been sell ing at 1$96.50 share, dropped to $19O75.
 Telephone and telegraph wires lead ing to bankers and brokers offices be- came crowded with anxious inquiries. The wires to Washington were over- taxed. Indeed, the questions asked were so many that chance could be got before the end of business only to say that the report was untrue; that there had been no conflict between Secretary Shaw and Comptroller Ridgely. With this assurance the ten sion in the street relaxed, but it was not until later that the affair was ex- plained.
 It appears that the dispatch, which was published by two news bureaus, came from their regular correspon- dents. When its truth was questioned one bureau telegraphed to it's Wash 1AS lOA A1dA AOA CApAdAdSAOAs
 He replied:
 My dispatch was based on state ment made to me by Deputy Comptrol- Ter Kane. The letter referred to was sent to bank yesterday calling upon it to make good its reserve, said bank having eliminated government depos- its in reporting the amount of reserve carried
 But the statement issued late in the afternoon by Comptroller Ridgely was entirely in accord with the position of Secretary Shaw. It read:
 ''The report that I have overruled or shall attempt to overrule the secretary of the treasury in the matter of reserve on government deposits secured by government bonds is wholly false and unfounded. Before the decision was reached he and several times had dis cussed the matter. and we are in full accord as to the policy of his announce ment and the way it shall be carried out. The discretion is joint, and nnal' decision must be with the secretary'