The Washington herald., 1907-03-14
STOCKS IN A CRASH;
LOW RECORDS MADE
CONTINUED FROM FIRST PAGE.

was sure TO come. There were murmur-
ings all day OF impending disasters Of
this kind. but. as far as known, not one
Of the rlImOrs. amounted to as much as
gossip affecting any particular house,
While in the early portion OF the bear
movement. i'm December, at least half
dozen prominent houses We're reported
to be IN trouble, the insolvency Of any
particular house or houses was nowhere
predicted. The street, which formu-
lated new phraseology to suit new stua-
tions, accordingly characterized the day
for the most part as silent panic.
International banking houses first ca
bled Berlin to know what was the extent
Of the trouble there The consensus Of
the replies was that no failures were con
sidered imminent I'm Berlin; that money
rates were high. but they they were not
yet-thank yOu-as nigh as the rates in
New York Hamburg. Antwerp. and Am
sterdam also reported high money rates.
but no fear OF panic. Paris, 1t was
learned had no fears for Itself. but as
usual. was putting gold in strong boxes
and sitting on the lid.
Failures Narrowly Averted.
In the morning it was reported that
cable advices from London showed that
failures had been narrowly ayerted,
and that fears Of the worst were enter
tanned for the fortnightly settlement
which begins tomorrow. Afternoon ca
bies to many Of the most prominent
banking houses. AT least, miugated the
force Of this report. One house received
this laconic message:
London is all right, except for fears
of New York How are you?"
Nevertheless. inquiries regarding the
gold supply drew the emphatic response
that London would in no case. except a
case Of absolute force, consent to the
withdrawal Of any gold from that coun-
try TO this Neither would London con-
slider it an act Of international monetary
comfy if New York, taking advantage
OF the prevailing rates Of exchange were
to draw gold from continental centers.
In substance. London felt itself able 70
take care Of itself, but was in no position
to render assistance 10 foreigners, either
directly or indirectly
The consensus Of opinion among inter
national bankers was that. nOtwithstand-
ing that exchange rates made gold inn
ports exceedingly profitable, Withdrawals
of gold from London would Indirectly be
Of greater indirect harm, as injuring the
London situation. than would be the di-
rect advantage of the Teplenishment Of
the gold supply here.
Money in this market opened at s per
cent but at II o'clock had advanced 10
~ per cent AS the liquidation i'm the
stock market progressed. the money
rates advanced, reaching a maximum OF
j. per cent shortly after midday and
though there was a decline later 10 az
per cent. the prevailing high rates for the
day were exceptionally disturbing fea-
lures
1t was explained that payments due be-
tween tomorrow and Friday, inclusive.
involved large instalments on the Penn
sylvania S50,00G0 note issue. on the
Northwestern stock issue and on various
minor new railroad securities made il
necessary for individuals, banks, and
trust companies to call loans. and that
the advance ia rates was due primarily
60 these eNigencies. But this explana-
ton. some OF the best informed bankers
said, fen far short Of covering the entire
field
For another reason. they said. there
had been a remarkably heavy call for
money from the interior.
Caused by Prosperity.
This" said ar experienced banker.
"surpasses anything that has ever oc-
CURED before IN my ume-a condition Of
semi-demoralization caused by too much
prosperity. Il may seem paradoxicaI 20
speak of too much prosperity, but ;hat is
what "a volume OF business beyond what
there is sufficient capital for really
amounts to. We have been doing too
much business on our available amount
of capital
The Germans have been doing the
same thing in greater degree. and to a
more or less extent every civilized ma
sion. with one notable exception has
been doing f. SO that for the decline in
the markets here. in London and IN Ber-
liu there is common cause.-The string
eney OF mouey-and perhaps what has
happened IS the only thing that could
have cured the trouble"
Table Showing Declines.
The following table shows the decline
in many standard securities from the high
point In December. generally from the
beginning Of the declining movement 1t
also assists in telling the story Of the
slump to-day:
Net
stock December Now. Ia.s
Atchls7a ........-.................. 1855 9A. I5s
baltimore and Ohio----.-..-..--. lZl& l0l4l Ess