Evening star., 1907-10-22
DAYS Transactions Reached
an Enormous Total.
LIQUIDATION WAS URGENT
Prices Yielded and Were Forced to
Low Levels.
709o BID FOR USE OF MONEY
Americans in London Demoralized.
Declines Below Parity With
New York-Heavy Selling.

Special Dispatch to The star.
NEW YORK October 2c-Notwith-
standing the striking and disastrous re-
suits of the days dealings upon the stock
exchange. the market Of Itself did not
after all afford ground for extended COM
ment. Enough was on the surface TO ae-
count for The. wholesale liCJids. ton which
was conducted. and there was enough in
the way of suspicion and anNisty to have
accounted for it without the occurrence
OF the actual facts.
This mornings intelligence with regard
TO the position of one OF the largest trust
companies in this city produced a violent
Tevulsinu of feeling from the reassured
sentiments of the previous day. and there
logically took place at the outset of the
market an abrupt and violent break in
prices For time support, which was
evidently of concerted character, was in
evidence. hut it was soon swept away by
the further successive 0uthursts of HGui-
dation. which occurred from time to time.
with the course OF the morning, persist
ent reports became current that the con-
dtion of the trust company was in even
moe deplorable state than was at first
expected. and il early became known that
run of great magnitude was being made
by the depositors, both upon the main in
Stitution aud its various branches. Then
Came the announcement that the branch
offices had suspended payment tempor-
arily. it is said and the stock market
showed more plainly all the evidences of
panic more definitely. indeed. than at any
time since the Northern Pacific corner in
1901
The course of prices was. however, little
otherwise than what must have been reck-
Oned upon in view of the undermining of
credit and confidence attributable directly
to recent events in the banking world,
but due almost equally to the long ante
cedent chain of circumstances co-existent
with the rule of the present administra-
tiOn at Washington.
Some small degree Of announcement
was derived today from Washington
dispatches stating that the treasury
authorities were keeping in close touch
with the developments in Wall' street,
and would soon announce some meas
ures for relieving the strained none
tary and financial situation at large.
Stringent Money Conditions.
1t goes without saying that the bank
Ing embarra ssment led to very strin-
gent conditions In the money market,
and at one time as high as 20 per
cent was bid for the use OF money
over night. Following its usual prac-
tice. one national bank did indeed place
its FUNDS on call at per cent but such
u hSure had no true relation to the
actual state of the days money market.
throughout the day urgent liquidation
or securities for the account of en-
oarrassed institutions and individuals
was conducted. and. considering the |
volume of this selling. it might be said |
perhaps. that the market showed a fair
degree of aosorptive power, even when
the magnitude of the declines are +akan
into the account
The days transactions reached an
enormous total and. of course embraced
an unusually large number of individual
issues. Sentiment was by no means
strengthened by a sharp break in Stand
ara OH and other securities upon the curb
market. although in such universal 1ioui-
dation 1t was not to be supposed that
those issues would be exempt.
A Clearing House Statement.
Members of the clearing house COM
mittee asserted that the banking situation
OF ITSELF that is. that part of it coming
under their perview, showed a substan-
tfal betterment
Ihe concerns weakened by last weeks
events had only small debit balance at 70.
oay clearing house settlement and thew
we're able 10 arrange these without out |
sioe assistance. The unfortunate effect. |
however. of the severance of the re
lattons between the trust comnauies and
the associated banks has never vet been
so clearly illustrated as at the prassnt
time
Neither tne Gearing house committee
nor any other organized committee was
able to give any assurances as 70 the
position of the trust companies at large |
and In the absence of such ASSURANCES
suspicious and rumors prevailed through, |
out the day. The word panic Should al |
ways De employed with great reservation. |
put IL would be idle to use any other term
IN describing the day In Wal street
Ihe American department of the Lon
oon stock market was altogether de- |
moraiized. and the quotations received |
trom that point before the opening of
with New York's closing prices of yester,
cay extending upward to four points |
That Circumstance and the yery heavy
seiing which was conducted here for |
ioreign account were. of course. In some |
measure the cause Of the really sensa
tional break in the local market right |
at the opening of business