The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1903-03-15
ACCOUNTING FOR
FALL IN STOCKS
Wall Street Bulls and Bears
Have Different Theories
]. R. KEENE LED BEAR RAID
Statements Of Secretary Shaw Were
Reassuring-lt is Entirely With
in Mr.. Shaw's Power to Pro-
teet Business Interests.
BY w. G. NICHOLAS.

New York. March 1.-THE stock mar
ket has been subjected to terrific punish-
ment of late and values were driven to a
lower level than that reached during the
murderous liquidation last autumn--a
slaughter that began in September and
did not end until nearly the middle of
December. The bulls find it difficult to
account for the decline on any other the
ory than that of a drive of the bankers
to force a. monetary stringency and there
by enhance the lending value of their
goods. The bears, on the other hand
find what they believe to be a legitimate
explanation for the break In the ALLEGED
over-produetlon of securities, professed
fears of monetary strlngency a sur
plus of currency inadequate for the i'm
mense volume of general business. and
symptoms of recession in the great wave
of prosperity. They insist that prices of
securities have yielded because they we're
to high and that the decline is merely
a readjustment of values upon a proper
level.
1t would be too harsh a term to charge
the banking interests with having en-
gagged in a cold blooded conspiracy to de-
press values in order to make dear
money, but 1t is plain that the decline
has met with the approval OF many pow
erful combinations of capitalists This
is shown by the absence from the city
of nearly every important market figure
whose support of prices has heretofore
been figure of the situation. and who
have been recognized as uncompromising
bulls. They left the market without pro-
lection against the attacks of the bears
who took advantage of the circumstance
to raid everything in sight.
The campaign has been led from the
start down to date by Mr. James r.
keene, who for the preceding two years
was the acknowledged bull leader and the
personal representative of Mr. Morgan In
the manipulation of Steel stocks and
other securities bearing the Morgan
brand. Mr.. Keene turned bear last fall,
although his altered position was con-
cealed for a long time He is not thought
to be believer in continued low prices,
as his permanent and larger interests are
now the other way. He is an immense
holder OF high-class stocks, and he is UNI
stood to be the heaviest individual owner
of Southern Pacific shares The feature
which influenced him to become a bear
leader temporarily was the dissolution of
a number of underwriting syndcates and
the throwing of large blocks of stocks
and bonds on the market by disappointed
members of such syndicates This un-
loading came simultaneously with the an
nouncement of large number of huge
issues of new stocks and bonds by rail-
road and industrial corporations. The
temptation to attack the market was
therefore very strong and Mr.. Keene
was unable TO withstand IT..
The latter part of February and the
first part of March usually form a period
of market depression, 1t, is the dark
hour just before dawn%the ending OF
winter and yet too early for spring and
another crop year to be born. In thirty
days the entire face of nature will be
changed. The green which now covers
the lower fringe of the United States will
envelope its entire area and the country
will have fairly entered upon another
season of crop planting.
The slump in prices and the attendant
excitement in the stock market gave ex-
euse for all kinds of stories to account
for the phenomena. Nothing was too
wild to be given a hearing. One of the
weird stories afoat was that the break
in the market was engineered for the
purpose of enabling Mr.. Morgan and Mr..
Keene to obtain control of Union Pacific
proper and thereby pay off a series of &C
cumulated old scores. So far as can be
learned the report was wholly imagi-