The Grit-advocate., 1904-03-25
CRASH IN COTTON
BIG BROKERAGE COMPANY FAILS
Great Slump Ends Bull Movement
Daniel j, Silly & Company Forced
to Susr..rS.-Scenes Of Crazy Con-
fusion

Daniel !, SILLY & Company Forced
to susP..rS.-Scenes Of Crazy Con-
fusion
| New York March 19-Daniel J.
Sully. who has for fifteen months been
| the largest figure in the cotton mar
kets OF the world. and who has
"bulled" cotton from cents a pound
to II cents. yesterday announced his
inability to make good his engage
ments on the New York Cotton Ex-
| change
Within a few moments cotton fen
nearly $l3 bale from the highest fig
ures of the day.
| Many crashes have been recorded
| but probably none has been accompal
| MED by such frenzy and confusion.
While there had been no Fremont
| tion of the impending crash. no morn
| ing of the season had Witnessed a
more demoralized market. In less
,nan three minutes after the opening
| ~ cent had been taken off the price Of
| cotton.
Prices went up and down 10. 20 and
80 points within two and three min
ntes. May opened at 1875 and sold
down to l475 in less than fifteen min
| utes. while July, opening at l5.22, went
down to 1856
Toward the end of the first half hour
early sellers started to cover, and
there was a rapid advance. There was
nothing in the news to account for the
| excitement. 1t seemed merely re
newal OF bear operations and the
catching of further step orders.
Shortly after the afternoon session
nnaplI ura - In in ba pif nd
about five minutes after two the an
nouncement of the suspension was
made by Superintendent King who
read from the rostrum this notice:
We regret that we are unable
to meet our engagements and
Will therefore have to suspend.
"DANlEL J. SULLY & Co"
For few seconds there was quiet
over the floor. Then. with one i'm
pulse. a mighty shout went up from
the bears, they who had been lighting
F, Sully and the bull clique for months.
| Hats were thrown in the air to be
| trampled upon in the stampede for the
| pit. CoHts Were torn by frantic brok
ers. and chairs and camp stools were
dashed into the pit.
7 Mcs ngfgs ssefe sCon r,shiAg in
sell or to buy Telephone booths were
besieged and telegraph Offices were
| flooded with dispatches.
Outside the Cotton Exchange ap-
pearances gave little indication of the
pandemonium within until the messen-
gers began to rush between the ex-
change and the brokers' Offices.
Soon the news reached the Stock.
Produce and Coffee Exchanges, and
the traders in these markets hastened
to see the panic. But double guard
was placed at the doors and admit
tance was refused to all but those ac-
companied by members.
1t was estimated that something like
$50 900 bales of cotton were traded in
during the twenty minutes of the panic
that followed the announcement, and
that of this. upward of 100000 bales
represented forced liquidation" or the
selling ont of men whose margins have
been nearly or quite wiped out. As
the market slumped $50 points during
this period the loss falling on this ele-
ment amounted to something more
than sl.000,000.
The market steadied after about
twenty minutes and then there was
sudden upward shoot of about 100
points. This sharp upward rise was
brought about by the buying of bro
kcrs and spectators who saw that the
market had sumped too far and would
react.
A part OF the excitement on the floor
of the exchange was caused by the
scramble of brokers who wanted Just
such bargains and had to fight to get
into the ring to get them. The buying
.tt, 4
as noisy as the selling panic.