The National tribune. [volume] (Washington, D.C.) 1877-1917, 1907-03-21
THE wALI STREET PANIC.


The panic irf, New York last week
came somewhat ahead of schedule time
and was. on its face, the severest known
since 1892. We say. on Its face. be-
cause it was clearly a Fictitious or
''manipulative" panic. that is. large
portion Of 1t was ,prearranged squeeze
of values and unquestionably gotten up
by the manipulators of the market.
The effects did not extend outside of the
Immediate environs of Wall Street and
had no influence upon the general BUSH
ness of the country. Wher we say that
it arrived ahead of time, 1t is necessary
to speak of the conditions which pre-
cipitate these financial disturbances.
At the beginning of every year a very
large portion of the money Of the coun-
try flows into New York as the finan-
.cial center to pay bills for goods bought
stocks of railroads and other maturing
obligations. Thus, along IN the latter
part of February a very large amount
of the circulating currency of the coun-
try is heaped up in the New York
banks. Money Is then very easy on
Wall Street, and as there is necessity
for its earning something. spectators
and operators can obtain it on low
rates In great quantities for their ma
nipulations of stocks. AS navigation
opens on the Great Lakes. and business
revives all over the country with the
Spring time, there is a strong demand
for this money to move the crops and
begin host of enterprises that are
waiting upon the weather. Conse-
quently tho heaped up money in the
banks is rapidly drained out into the
country. The money market becomes
very stringent, the loans are called in
from the SPECTATORS, and usually a
host of these are caught with TRANSACT
tions in the air upon which they can
not realize. and they are forced to sac
rifice. The result is usually q crisis in
April. which sometimes develops into
q panic. The same conditions Of ebb
and flow are repeated again in Mid
summer. Usually about the middle Of
August the money is again heaped up
in the New York banks, and in Septem-
Der 1t Is taken out again In great guam
titles to move the crops. and. therefore,
our greatest and severest panics have
usually occurred in the latter part Of
September. While every Wall Street
operator knows that these conditions
occur in the Hm6hey market In the
Spring and inn the Fail with as much
regularity as the recurrence Of the sea-
sons, yet 1t happens twice every year
that -multitudes ofsthem are caught in
these crises with nothing like the ex-
euse that a farmer has for being caught
by untimely 'frosts, Undoubtedly the
leaders In the financial world. the Har-
cimans. the Goulds, the Vanderbilts,
etc. who are shrewd enough to expect
and prepare for these crises. take ad-
of then ip, their manipulations
to squeeze out the smaller and more
thoughtiess. and obtain stocks that they
desire at reduced prices. to sell them
again at an advance. A great deal of
this entered into the recent panic to
augment its severity.
The next element is that the people,
the investors Of moderate means, who
own a large part of the stocks Of the
have become much alarm I'D
by the revelations as to the inordinate
watering Of stocks by great operators