The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1902-09-30
WILD PANIC
IN STOCKS
Many Favorites TumbIed
Down Several Points.
BANKS DRAINED OF MONEY
Presidents GaveI Fell and
SAVED a Disaster.
BANKS DRAINED OF MONEY

nquidations continued IN varying degrees
all day. During the last hour Of bus
mess belated borrowers found the sup
ply OF available funds exhausted. and
they ran the money rate up quickly 10
. per cent. There was wholesale
throwing over ot stock all around the
room, and the aspect OF thing. was rap
idly taking on an appearance Of panic
when the presidents gavei fell and trad
Ing was ended for the day. Prices were
still tu-noling rapidly in al directions.
and one or TWO feverish rallies while
TIE bears were scrembling 10 take prof
rs made no impression on the general
! decentralization Of the market some OF
the principal losses were Louisville. III.
81. Paul. -; Atchison. g.; Illinois Cen
tral, 81; Pennsylvania. 81: Baltimore
and Ohio. So. Canadian Pacific. 9. North
western, -. General Electric and Man
haitian, 5ls. and long list OF prominent
stocks Over points Losses I'D 10 4
points are common throughout the list
The local banks were entirely out OF the
money market and the trust companies
were very small lenders in the market
Funds Of out-of-town banks and u indi-
vidual lenders made up the available sup
ply
II was very evident that there was a.
large number Of security holders who
hoped thar rates would work easier to-
day, encouraged 10 tins view BIZ The
notable recuperauon achieved by the
banks last week and the considerable
margin OF surplus reserves revealed by
Saturdays bank statement This class
held on during the early part Of the
day from supplying their needs. hoping
that they could maintain the serenity OF
the money market by RETAINING from
early demands upon IT.
The call loan rate was pretty quiet
up 10 noon at about "a per cent. II fur
RED during the noon hour 70 u per cent.
when the demand again became less urg-
ent- The consequence was q Wild scram-
bic during the final hour 70 secure loans
and a general sacrifice OF holdings on
the part OF those who could not secure
accommodation The events or the lat
ter part Of last week admonlshed the
banking community that there was
speculative element absolutely persisting
in determination 10 place al the funds
they could secure in marginal holdings
Of stocks
Further accommodations Tor this pur-
pose were peremptorily refused by the
banks. The effects Of this determination
developed ~ the stock exchange before
the day closed. The liquidation com
menced in London bsfore the opening
here and this had the erect Of throwing
about 1900 shares for sale on the local
market at the opening on arbitrege &C
count. This was supposed TO be for ac-
couet Of a leading American operator
nov in London.
All OF the recently active speculative
pools and combinations were active in
the liquidation before the day closed. It
cannot be said that th>re we're any new
unfavorable developments in the money
situation. Rather there was a common
recognition OF the future demands 70 be
met by the money market ard the mad
equacy OF the available source Of replen-
ishment % meet these requirements The
improved position OF the banks had the
effect this morning OF stiaening the for
eign exchange market and cutting OF
the hope % further relief By gold sm-
ports. but yielded no relief 70 specula-
tive borrowers The various expedients
" the treasury. the anticipation u Oc-
tober interest and dividends by some
very large corporate interests and all
other means that have been tried have
simply served 70 demonstrate that the
money and credits locked Up in specu-
lative commitments in the stock market
have not LETT enough 20 meet the interior
demand ~ circulation ard the sub-treas-
ury demand for customs payments u
is evident that III heaviest interior de-
mand is yet Il Be- met. Apparently all
interests have arrived AZ a common de-
termination today 20 take the short way
u the only mean. q relief available.
which was BE- selling cut stocks and pay
ing or loans- Only tomorrow develop
meats cau prove how far the neces-ary
work hes been accomplished.
Tn disappointment over the failure u
the 81. Paul directors 70 propose stock
minority stockholders as n how they are
70 b treated n the transfer Il control
and the further surgical treatment ne-
cessitateo n the presidents wounded -,
Intensified TIE disposition in the stock
market But a. otae- considerations /
were eclipsed bv the difficulty p Dor
rowing money r. carry stocks
The hond market was weak bat - =
much less degree than stocks Tats,
sales. par value. 8 ai5 g. United states
aonas were al unchanged On ~ lss-
call
Closing stock quotations we're a. fol-