The Washington herald., 1907-10-25
WALL STREET NOTES
Prices in London Go Up and
New York Follows.
MORGAN COMES TO THE RESCUE
when Decentralization Is Imminent,
Financier sends $25, ,OOO,0O0 to- the
Cent-Steel Holds Up Wen and
Closes at an Advance of IL Points.

New York, Oct 2L-London set lively
pace to-day and rolled up a handsome
score of advances in American stocks
Our market tried 10 follow, but il did
not appear TO be in condition to equal
the performances Of its foreign rival. and,
becoming Winded al about the end of
the first hour lost ground. and made
worse record than at any previous time
since the present decline began.
In the afternoon it suffered almost
complete collapse. There were, OF course.
reasons for this-the closing Of two small
State banks. the enforcement by a small
savings bank of the sixty-day rule
against depositors in which to make
withdrawals, the continuance of the run
on the Trust Company of America. and
runs on other institutions, the closing
Of the PittsbuIg Exchange and, most
important of all, the stringency of the
money market, which left brokers who
We're short of funds hardly any othe-
alternative than TO supply their needs
for cash by liquidaung securities.
By q very narrow shave a panic was
averted soon after o'clock. Demorali-
zation was caused by the inability of
brokers TO obtain money at the most
critical period of the day, when in ac-
eordance with the rules of the exchange
they We're required TO make deliveries
The rescue Of trading from utter panic
was another of the services Of the pr0mi-
nent private banker who in the present
emergency has practically achieved a
triumph as the savior of the situation
CAN money was quoted at 100 per cent
when the private banker, or his house.
sent a report on the floor of the exchange
To lend S15,U.HUg0 at 10 per cent.
Brokers would gladly have paid much
higher rates for the money needed. but
they could get only small amounts on
any terms A few minutes more and the
failures would surely have to De am
uounced The situation was grave when
the relief came. With it the regular rate
was cut in half and confidence was III
a measure restored. 1t was the sraudest
achievement In the memory OF any broker
The change that occurred In the market
as the result of organization of a large
supply of money is illustrated by the
string of prices that came over the tick
er. At 2;l0 "a string OF transactions in
Union Pacific was reported as follows,
100 shares at l03 1-2. IS al l0S, 100 at 102 H.
lo5 at 102 IA 500 at l02, 700 at l0l -. 800
az l0l, 30 az ll l., and 1.5tJ AT 100. Ten
minutes later came the following: Read
ing 20 shares at 72 36o az 1S 6gJ al g..
200 at 20; Amalgamd,ed Copper. loo at i-ia
ZJ0 at a. 41 al II Ia. and 10 aJ a I-4,
Union Pacific. 100 at lo4. and 200 at lo5
A more complete reversal of form within
the compass Of few minutes time has
very rarely been witnessed
No amount Of pressure could drive
United States steel below -, the point at
which it had received support all through
the break I'm the general market The
stock held firm as rock and any one
who was obliged to raise money and held
some steel in his box knew where he
could cash without much sacrifice.
The most remarkable thing about the
market for steel was the wonderful resil-
enCy which it displayed I'm the last three
quarters OF an hour of trading at 2-l5
1t was quoted al -. Later il rose go -
and closed herewith an advance OF li-
points on the day. A rise of relatively
large proportions in a stock of five times
the price would have looked imposing.
and the significance of the advance ia
steel is enhanced by the fact that the vol
ume of this stock is greater than that
OF any other dealt in ON the exchange.