The Cairo bulletin., 1907-12-31
MUCH FINANCIAL
HISTORY MADE
YEAR 1907 GOES DOWN IN HIS
TORY As ONE or OUR
tseA PANIC WEARS.
BEGAN ON MARCH IA
When Extent to. Which CapitaI Re-
sources Had Been Strained Was
Revealed in Series Of
Breaks in Stocks.

4
II New York, Dec. 30--The year 1870
J has been one In which there ha
been much making OF financial his
tory. II will go dUwn with 1857. 1877
end 1898, as one Of the panic years II
; American financa, but despite the re
markablc stress and strain to which
the financial structure has been sub
jected the year closed with condi
lions stronger and safer than they
were when the year began.
II The year opened with the feeling
In conservative quarters that specula
tion had already been carried to an
lnnwarranted height and that prudence
was imposed BY conditions upon
bankers and capitalists. That this
feeling operated to some extent
throughout the year and that there
was a scarcity OF capital for absorb.
Ing new securitiesg was indicated by
diminished transactions in stocks and
| bonds on the New York Stock Elk.
change. The banner year prior to
| 1902 was 1901, when the number of
shares dealt in was 265 1854. There
was decline to 1CO.74S,36S shares in
the depression of 1903, and a recovery
OF 263,o40, 993 in 1906 and 2S8,424,2 ,234
! In 1906.
The number of shares dealt in in
1907 fell to 195.169,192. Bonds in
1901 showed sales of 1899 404,920
which fell In 1903 to s6S4, ,200,S50. The
maximum came in 1904 when sales.
We're s1,030,s10,560; In 1905 sales
stood at $l,0lS,59n.420. Signs of the
exhaustion of capital were already af-
forded In 1906 by the decline of such
'sais's ~ -sG7f 81 z-assza and finally to
$561,561 800 III 1907.
The source or the pressure upon
the money market rs indicated by al
large issue of securities which took
place during several years prior to
the crisis. Statistics complied by d
leading financial Journal In Brussels |
showed total issues throughout the
world averaged for five years ending
1906, $3,4o0.OOO0O0 annually. In the
United States Issues of stocks for the
first eleven months Of 1907 were
$757,359.5 500 and OF bonds and notes
81 s1,07S,9s0.0oO making total Of ST..
SS1 ,349,50O.
The extent to which capital re-.
sources have been strained was not
revealed In striking manner to the
general publis until "the silent panic"
of March 14th, now almost over
shadowed by later events. but at the
time one of the most serious and re-
breaks which the market
has ever suffered. The loss of 10
points In Amalgamated Copper in a
single day. 21 points in American
2 in Reading and 25 In
Union Pacific. added to the consider
able previous declines at a slower
rate. wiped out margins, compelling
he calling of loans and wrecked the
'ortunes of many spectators. The ,
market recovered only slowly during
he spring and early summer, to ,
uffer new reactions in August; but ,
was not until mid-October that the
torm broke in all It's force when with i
collapse of corner In United Cop
,er the appeal OF the Morse-Heinze
,snks TO the clearing house for help
nd refusal 10 extend such help until
he old control wa4 eliminated.
Events then moved fast The 6
Trust company closed
october 22 after paying out about
s. 100000 cash; and runs began upon
be Trust Company Of America, which
allied sfof disbursements OF $4,000
90 and upon the Lincoln Trust com. 4
any. which suffered nearly pro o
ortionate loss OF deposits. The sus. o
ension of cash payments By prac- s.
IcaIly all banks and the ds,ision 4
October 26. TO issue clear r,
lg house certificates on the follow I,
,g Monday marked the eliminating !.
tsge of the crisis. Then the govern =
rent deposited sso.0oo.oeo In the Ma =
onsl banks Of New York and gold :,
as imported: at the close of De !,
rmber sbouts slee.oooceo had been :
sccived.
:
Notwithstanding these measures of .
lief the country banks aN public =
raiIowed up in the week esding No
,mber End So, 900 .0ea. iD/ currency:
,vernment deposits of nearly $50. =
1000 disappeared and the loss In
Ish reserves Of hankk was dis.
csed to be sso.60i SEQ. Al t. ssme
me the bank and trust company ST.
'tion reached one Of It's most crfti- =.
j stages The advent Of election dsy \.
forded breathing spell and ar -
ngements were made 10 support the A,
tuation. Ten days later came Sec "a
tary Cortelyou's offer Of f50.0o0. 900 -
mama Canal bonds and 500. 600 200 -
Ie year certificates This announce =.
enf. accompanied by vigorous letter
Dm President Roosevelt did much. =.
the opinion Of many bankers to
fCuacfudes On EIrfh Par=l Inc