The Washington herald., 1907-10-25
MILLIONS POURED IN
AND MARKET SAVED
Continued from Page One.
doing in the way of time loans and other
paper loans.
Money Market Relieved,

| Further Improvement in this direction
is expected tomorrow
The suspension of two small banks up
town. one Of them Thomas bank prior
/ to last Sunday. when the Thomases We're
eliminated. had little effect upon condi-
tions. The suspension Of one of the banks
caused little surprise in view Of last
weeks developments.
Prior to the time that the S2OOOOOOO Of
money raised by the Morgan syndicate
was offered on the floor OF the stock ex-
/ change there was a period of entire de
/ moralization in the trading Suisse
guantlv there was one Of the sharpest
/ upward movements In prices that Wall
| street has ever witnessed at a time
when the market seemed so close to col
llapse. The day closed with altogether
the most cheerful feeling in stock ex-
Ichange circles that has been displayed at
any time this week.
Money Badly Needed.
one cause alone brought about the
crash in prices. Through the morning
hours bankers had accommodated brokers
who were badly pressed the night before,
and large sums had been loaned on the
| floor Of the stock exchange. From noon
on TO past 2 O'Clock offerings of call money
were entirely suspended. II brokers could
Inot borrow money on the stocks they had
purchased. there was but one alternative.
AS the time passed from noon until ,
O'Clock and no money made its appear
ance. the excitement on the floor of the
exchange constantly increased, dread Of
4 failure to secure money on any terms
becoming GREATER and greater, and when
at 2.l5 o'clock the supply Of money was
! still lacking. every broker on the floor,
il seemed. came TO the conclusion that
money would net arrive in time to enable
them to make good on their investments.
/ Since practically all of the brokers be-
I icved that they were in danger OF sus-
pension. there resulted an acute panic in
! the strict dictionary sense Of the term
There was. in other words. a sudden,
! unreasonable. OverpOwering fear, espe-
cially when affecting a large number 81
multaneOusly.'
Panic of short Duration.
The panic was Of short duration. but
/ il was accompanied by one of the widest
scenes ever witnessed on the stock ex-
change, and one Of the sharpest breaks
/ in prices that has ever been Witnessed
In a short space Of time. The bottom
seemed to drop completely out Of the
market
Half crazed and thoroughly frightened
brokers offered stocks at sacrifices Of
from one. three. four. and, in some
/ cases. even five dollars a share below the
prices preceding. All hope seemed 10
have been abandoned and around the
various posts the action was nothing less
than a stampede in which brokers strug-
gled tumultuously with one another TO
see which could sell stock at the lowest
prices.
One broker. an experienced and Tespon-
slble member of the exchange, offering
ten thousand share lots of Union Pa
ciic at prices but little above par
called on other brokers TO witness that
! these offerings represented enforced sales,
and that he. like the others, was selling
I because Of necessity, and not as a bear
/ trader.
President Z. II. Thomas. of the stock
exchange. at the beginning of this brief
panic hurried 20 the bankers TO impl0re
them to contribute money for loan on
call
willing to Pay Any Rate.
As on the previous day. Mr.. Thomas
| explained. the rate of interest made no
/ difference. Brokers were willing 10 pay
anything provided they could get money
to carry the stocks over night. A failure
| to secure money. he said. would bring
about the direct consequences. An init
nation that the exchange might even be
forced to suspend, as was the case in
| lS73 be was also reported 10 have given.
| Mr. Thomas went first 20 the National
/ City Bank, where he was referred To J.
/ 2. Morgan. He then repaired to the
| Office Of J. p Morgan. Mr.. Morgan told
/ him, so Mr.. Thomas said TO a broker:
Mr.. Thomas. you go right back. There
will be S2O.000.OoO sent over Immediately"
/ Mr.. Thomas returning to the exchange,
! circulated among brokers as rapidly as
| possible, and told them TO keep their
nerve and not 20 lose their heads. and
/ they would never regret taking his as
! suTance.
! The furious rush TO sell abated, but
/ it was not until about five minutes later,
| at 2:20, that brokers reaH ed what MI
/ Thomas had meant by his assurance.
/ Then appeared on the floor Of the ex-
change Vernon Mann, Of Mann. Bill &
Ware. loan brokers, and two prominent
/ Morgan brokers. MeSsrs. Rogers and At
| Ierbury. These brokers had commissions
| TO place the money which Mr. Morgan
/ had assured Mr.. Thomas would be forth
coming.
/ Large Lots Are Taken.
! The money was offered first in 100000
lots and snapped up inside of five min
uteS. In the hurry TO secure loans, few
brokers stopped to consider the money
rates There were brokers on the floor
who had to have, in some cases, as much
as 100000 to carry their contracts, and
| others needing half a million or more
| When a large part of the money had
been placed in hundred thousand dollar
lots, the brokers made offerings of vari-
Gus amounts SO as TO accommodate those
whose requirements were smaller.
The money was quickly exhausted, and
at 10 minutes to 8 the demand was still
unsatisfed. The brokers were then given
an additional supply by J. p. Morgan &
/ Co. and this sufficed to satisfy all de
mands After the close of the market
money was offered freely at per cent,
| with no takers.
The money advanced by the Morgan
J syndicate was loaned at rates ranging
| from 10 to 50 per cent. Earlier in the day
! there had been loans at 100 per cent
In the morning there was placed about
$685. 900 for the National Copper Bank at
50 per cent with the first money that
| appeared on the floor.
Mounts Up Into Millions.
Vernon Mann then DlaCed S3 OO0 600 for