The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1907-03-19
SPECULATION AS TO CAUSE
SeVerest Short Panic Since May
IS, 1901
Came When = General Conviction Had
Grown uD That Worst Was over
Regarded in Speculative Circles as
Effects of Public Agitation Against
Observation-Disclosures Assert That
There are no Signs of Money Trou-
bic or Embarrassment.

New York, March 14.-LiQuidauon
was of a volume and character today
such as has not been witnessed on the
stock exchange since May 10, 1901, !
when the development Of a corner in
Northern Pacific precipated me of the
seyerest short panics ever seen in he
New York market. The extreme VIC
lence OF the declines on that occasion
broke in abruptly upon a period Il
boom and rising prices. Today's dem
onstration was radically different IN
that it succeeded Il prolonged period
of liquidation and severe declines in
prices. Not only had much been &C
complished towards the necessary Ii
qufdatiOn before the present break,
but the action of the market had be
gun to reflect a return of confidence
early this week. and a general cJnvic-
ton had grown up that the worst
was over. The sudden and acute out
break Of renewed weakness today
owed most of its violence to the feeling
of dependency in speculative circles
regarding the effects of the public agi-
tatiOn against corporations and the
nearly universal trend OF legislative
measures against them. The Specu-
lative circles are not disposed 10 rely
on their information and deduction as
to the extent and the significance OF
these developments. The extreme
sensitiveness of sentiment on the sub
ject is fOuded on suppOSitiOns OF what
| great authorities in the railroad IL
nancial world think on the subject.
| The recent events have created the
| impression that these authorities are
ia a condition of keen nXlety ana
! even of fright about the prospects
! they have to face in this matter. Some
| of the steps taken, with h lnten-
| tfOn Of aIIaying apprehension on the
| subject seem to have been principally
instrumental in a~ggravating It. This
was notably true of the visit to WASH
| ingtOn early in the week Of J. +. Nor
gan with the avOwed purpose OF act
| ing as mediator between the president
| and the railroad companies in an eff
fort to induce the president to take
some step to allay public apprehension
regarding the credit of railroad COM
panies. There was a mOmentary sense
of relief manifest in the stock market
of the early part of this week, without
any clear idea being entertained OF
the steps to be taken or the purpose
that would be served by them. A
vague ~supposition was entered that
some striking and effective measure
was to be taken at Washington which
would put a new face on the matter.
The panic broke out on the stock eX-
change today in connection with the
dispatches from Washington TO bro
kerage houses that no change OF pol
icy or of administrative conduct was
to be expected in Washington. TINS
appealed strongly to the speculative
IMAGINATION and fears as sweeping
away the last .bulwark of protection
for the railroad companies from the
onset Of indignant public disapproval
asd even threatened c~onfiscat1on.
Speculative operators saw this view
of the situation confirmed in the mys-
FERROUS and overwhelming outpourinS
of stocks. which they attributed to
capitalists, who hold controlling in
terests in the great railroad capitalists
sllDpOsitiOn that railroad capitalists
hold this opinion of their ~precaT1OuS
situation has been fOstered by their
attitude before the public n the
complaints and even appeals through
public channels which they have been
making. There came into the eXclted
market today also a rumor that Oil
f~erences of opinion had arisen pet
ween Kuhn, Leob & Co. and r. II
Hartman, which prompted a call on
that fnancier to take up ms VaSl
holdings of stock with that firm ms
rumOr was authOritatively denied but
the fear it e~ngendered had its part III
the decentralization of the day. The eX'
cited market was accompanied by
rise in the cali loan rate TO p pei
cent and the time market was pTac'
tically unquotable. This gave rise u
fears of over strained credits IN on
direction or another, TumOrs pointing
especially t the market for cope
securities. Bnkers asserted wIthou
reservation that the most exhaustive
: and painstaking scrutiny Of condition.
: failed to show any threat of none!
trouble or embarrassment, IN spite o
the enormous losses represented b.
j. the shrinkage in quotations. This i
2 considered the most remarkable lea
ture of the present remarkable situa
ton Undoubtedly discrimination a
: gainst some stocks in collateral 10
E--a:. .L=a-rinn k,t ha.