The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-03-11
FEAR OF PANIC LSNOW
OVER IN WALL STREET
The Enormous Shrinkage Of Sc
curities Has Been Slow
and Gradual
RANGE FROM Is TO so POINTS
Railroads Will All Avoid Expen-
diturcs and This May Injurc
Iron Industries.

|
NEW YORK. March 10.--we have
now had over six months liquidation
and the market has shown a shrinkage
of ranging from 15 to so points re-
action In the active shares. This enor-
nous shrinkage in Stock Exchange
valuations has been accomplished grad
uallv and without any apparent serious
consequences, or even symptoms of
disaster. On Wednesday the market re-
ceived a severe shaking down, such
as In some conditions would have sug-
Rested panic. In fact. II is a question
az to whether we have not been
through a period of panic adjustment
stretched over several months instead
Of being concentrated into few days
That the market stood the violent
break OF Wednesday without disaster
or r,imors thereof was demonstration
OF soundness that was hardly expected.
In view of the tremendous decline, |
" hich has already taken place and of |
the manner in which that test was !
met 1t is proper to ask, are we not APP
preaching a turning point in the mar |
ket? Apparently, we are The fact
| that we are now on much lower level |
| than six months ago diminishes fear
| of panic 1t is evident that the big |
| holders's sold stocks freely in the latter
! part of 1906 and commenced to buy
! some of them back on Thursdays sharp
| decline. The market, therefore Is con-
! seuuently In a much safer technical
| position than for many months The
| severe LIQUIDATION should very shortly
| be reflected in an Improvement IN
\ monetary conditions. 1t is true local
bank reserves are at very low ebb.
and the national bank statements pub
| lished at the end of January showed
| that the West has been lending its
| surplus funds freely in New York. AS
the time approaches for the April set
4 dement's. the course OF the local money
/ market will be watched with much In
terest.
Should the interior freely withdraw
balances held In this city, we may see
4 sharn spasms in local rates. Yet recent
4 liquidation in stocks ought soon to bring
i considerable relief and be reflected In
a better bank statements. After the April
requirements have been provided for, we
look for Improvement in this respect, ana
he rnidsummer--if not In the spring-the
money market should be materially easier
and in IA more comfortable position.
Dominant Influence.
! The possibilities OF gold imports are
, encouraging. 1t is quite evident that we
;, are a dominant Influence in the worlds
! movements OF gold. Should we need that
l 1 precious metal we will be able to COM
! mand it and will no doubt exercise the
! mower when necessary. Our international
Z bankers seem disposed to respect thf
feelings Of foreign bankers. for the rea
: son that they do not wish to stir up any
= further animoslty against American
finnnce-a policy that Is wise, in view o
the fact that we may still be obliged Il
seek aid from abroad In the marketing
L Of our securities. If our railroad mana
]. gers are correct in their calculations
y there is still large supply Of thes
Forthcoming for the purpose OF carry1nl
Y out imperative railroad improvements 'al
and it is desirable that the market TO
these should be cultivated and not spoile
!. by over -insstent demands for gold an
q credit abroad. The market was. Q
course, considerably excited on Thurs
Iday by the report that two pronninen
" operators had secured control OF Reac
>. ing. AS yet the outcome Of the move
q ment Is not disclosed. Evidently ther
Is a spirit of rivalry between our gres
I railroad leaders which, unless Kept WITH
!, reasonable restraint, may easily crea,
a occasional disturbances In the stock ma
" ket. we have previously seen the effe'
~ Of such rivalries upon market value
u and 1t Is to be hoped we are to see r
), repetition of the experiences which hal
l. pened a few years ago when competitic
Il was SO rife between many OF the san
men.
81 Apart from these movements Il
"a railroad situation is not sattsfactor
~ Gross earnings. 1t is true. are larg
but the number and extent OF declin
n in net earnings are increasing to
,T significant extent. II these contint
~ Iit is quite certain that some of I
nj recent advances in dividends win n
be permanently maintained. and 7
- auctions will follow. General ira
ron conditions continue satisfactory. Blu
ere ness is on an active scale, althou
ca as in the case of railroads there Is
ION increasing complaint of diminish
an profits At present, however, there
no prospect in sight of dlminution
business. except such ms is likely
come from railroad retrenchment. I
J. latter Is foregone conclusion. 81
era Of the railroads have annount
BE their intention of keeping down o
lays for new improvements at as l
a figure as possible and some ra
-At roads have already cancelled orders
en, locomotives. cars, etc. IL this pol
ED continues 1t is likely to have qui
Sec ing effect uron the iron and steel
~. dustries. Whether this will extend
W. other departments of industry or
VIZ remains to be seen. AS for the fut
ahu of the stock market, recent liqui
,rn- 49,, 80 tba nrosnect az better mo
~ tary conditions have not yet ap
the rently induced change OF the attit
Ah'- OF the speculative leaders, who G
" tinue to depress values, although mi
i've OF the worst features In the situat
une have been we'll discounted for the pi
esl- ,aast
,tad. unNpy crnw,