Barre evening telegram. (Barre, Vt.) 1898-19??, 1902-01-13
THE CR|SISIN GERMANY
Present State Of Affairs A,trib.
uted to Wild Speculation.
COUNTRY PLUNGED IN DEPRESSION.
All Said to BE Due to Extraordinary
Electric Share Speculation-Yhen
Cra<h Game, Widespread Ruin Fol-
! lOwed-Few Months Ago Business
of All Kinds Was Booming.

| Vi hhA " ~ nOOmluBs
The New York Heralds Europea
edition publishes the following fror
its Berlin correspondent under the dat
of Nov. %:
Just year and half ago trade wa
booming in Berlin and throughout Ger
many. Today all is dull and depressed
and no business Is being done.
Eighteen months ago the scenes OF
the Berlin boerse were such as wer,
never known before. People almos
fought in their eagerness to blu!
shares. Bankers grew rapidly rich
and so great was, their business that il
many eases they bought adjacen
houses and doubled the size of theil
banks. Brokers grew rich also ant
bought fine houses, race horses ant
| yachts. Everything fourished.
Germans spoke of German advance
ment with triumph. There were. they
said, but two countries In the world
where trade could increase with such
rapid strides-Germany and the United
States. Wages were high, and work
was plentiful. Today all is changed
The bankers are doing no business and
In many cases have much deprecated
stock upon their hands, which they
would gladly get rid of. Brokers are
lying low wondering how they are 60
Ing to find money to keep up the
houses and horses which last season
they had plenty of cash to buy.
The boerse is half deserted, and
business there is we'll nigh dead 1t
looks as though there were exceedingly
little likelihood of any immediate resur-
rectiOn.
How can such a change have taken
place? 1t seems scarcely credible here
In Berlin that Germany was few
short months ago footing it gayly along
the financial and commercial road to
the very same tune and time as the
United States, celebrating in fact the
most prosperous commercial period in
the existence of the empire. Today
that financial situation is shaken and
that commercial prosperity. for the
time being. at all events. is completely
gone.
What extraordinary thing can it be
that has brought about such change?
The answer is. electricity. At all
events. electricity has been the main
factor in the slump which caused even
the sturdiest tinanciers to feel some
what uncomfortable regarding the pres
ent and future.
To find out the reasons for such
sudden and terrible change in the as
pect of financial affairs throughout the
country have asked the opinion of
come of the best business men in this
country [Germanyl and will proceed
to give you. as briefly as possible, sth1e
of the most practical ideas they give
as accounting for the particular state
Of affairs.
First, 1t Is necessary to understand
that up to a period of some twelve
months ago there had been, in Berlin
and generally throughout
Germany. such boom in electrical de-
velopment as the world has never
known in any one country. Electrical
shares were the rage. People sold out
every other kind of stock in order to
buy electric shares. A sort of idea ap-
pears to have taken possession of the
German people that electricity was ev- !
and all the rest nothing. Ev-
cry one who had a little money to spare
)ut 1t into electric shares. thinking they |
lad purchased immediate fortunes.
E1Qofpio bu
naturally doomed and rose to fantastic
PRICES. Not only did public support
send them rocketing unreasonably. but
,liques of skillful but doubtful persons
started to do that which Is known as
milking the market" These cliques
played battIedoor and shuttlecock with
electric shares till the public began to
get nervous.
SedulouSly and skillfully these cliques
would spread reports to suit their
nds. They would prolnulgate pessi-
nistic rumors to send shares down and
imp in and buy on the strength of the
depression caused by the needless fears
# the oversensitive market. Then Just
IS cleyerly they would rig the market
Up again on the strength of optimistic
umors just as untrue as the previous
'essimistic ones.
Everybody was in it. Leading banks
pened special electricity department.
n the case of one particular bank the
lectrical department occupied the fin
ST part of the building. Electric shares
'ere taken in largely. even by the best
anks as collateral as security for
'ans and as q cover for investments.
he banks were full of electricity
llares- thus taken. Nobody doubted
ne value Of such shares, and the banks
1ok them willingly.
What is more. they were bound to do
o or remain without business, for it
'as the one particular kind of security
Which every one held. 1t was the pop
lar paper of the moment and, held as
was in such powerful hands, seemed
ertainly gilt edged security.
Electrical companies sprang up on
IL cidaS No ,,ito1 ocl,ad for AOwod II,