Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-03-17
Bears Overstayed Their Time
and Then Sought Cover.
BANK STATEMENT GOOD
Clearing House Exchanges Reached
Sum CT $67s,719,315.
INDUSTRIALS ALL STOOD WELL
Ultimate Effect of the Enormous
Slump Still Problematical and
Its Origin Mysterious.
1NDUsTRIALs ALL STOOD WELL

NEW YORK March 16-There was
further volatile recovery in prices today
from the inordinate depression OF the
Thursday market. An overwhelmed bear
account was evident influence In the
ebulliency Of the late upshoot The days
business. however, showed very large and
confident absorption of stocks going on and
confidence in the situation seemed to be
completely restored.
The complexion of the bank statement mad
something to do with this. The reductlon
of the deposit item by scaling down OF loans
proved sufficient to reduce the reserve re-
qulrement more than proportlonateS u tne
cash reduction and so to conserve an adol-
ton to the surplus. The loan item Is sup
posed to include the large preparations FOR
the Friday settlements of the earlier part
Of the week for greater erect on tne aver
ages than the loan contraction by STOCK
-Iiouidatson later so that the effect or the
loan reduction is expected to be carried
over into next weeks statement. Inc ol-
mansions of yesterdays money settlements
are indicated by today's huge claring mouse
exchanges which rose to $67S, 119,3lo. Inc
only time this figure has ever been exceeded
in the history of the New YORK clearing
house was on January 3, 1906. when the an.
nuA settlements resulted in exchanges ol
$3.50 S44, SOL Sterling exchange ruled at yes
terday's low level today. indicating the
power of New York to withdraw gold from
London, unless that step should be deemed
impolitic. Funds were more freely ohereu
in time loans today, with the restoration vi
confidence and a rise in the New YORK ex-
change at Chicago to par has occurred. Inc
tenor of the United States Steel annual re-
port especially the reference to the sustain.
ed level orders received since the hist VI
the wear. was an influencing factor in the
strength of the market. So also was the
tone of the mercantile agency reviews.
showing an expanding volume or business
through the country. Hasty pront taxing
made the closing of the market irregular,
but there was excited buying still in prog
ress. Total sales of bonds, par value
81, $4,000
Spectators Still Wondering.
The collapse in prices of stocks which mas
occurred this week has been so sudden and
so violent as to- leave opinion dazed over
the meaning of the demonstration and its
probable Interior consequences. The extent
of the declines has been so portentous. the
volume OF the offerings which have deiugeo
the market has been so Overwhelming anu
Of tho same time the usual consequences
of failures or financial disasters nave Deeh
so entirely lacking as to leave an uncahny
effect on the minds of observers. Inc ex-
tent of the slump Is the more remarKaDie
nc coming ON the heels of q prolonged de-
cline. which had already presumably gone
far to discount the unfavoraple tactors
which were supposed to be the innuence
on the market. The cumulative eHect OF
The last snasmodic drop was all the more
acute for this reason The measure Oh the
fall in prices Is so much the greater "hen
compared with such previous occasion as
the May panic of 1901. with which the pres
ont week is most generally compared for
violence of fluctuations and indiscriminate
unloading of stocks, as 1t follows sucn
prolonged fall. while the 1901 panic broke
in upon a period of buoyant speculation at
n iS not to be supposed lndC
any one cause lies behind SO violent an up
set in the securities market
Railroads Are Blamed.
Rut there is no doubt the prevailing opin-
ion in the stock market, financial and rail-
road world attributed the principal respon-
sibility to the situation the railroad cor
porations find themselves in from the pre-
yailing attitude toward them OF govern
mental agencies and the prevailing pupiic
sentiment of the whole country. Inc STOCK
discussion in Wall street for some time
past has been of compilations OF laws
passed by various state legislatures ior
the restriction of railroad charges and Tor
other measures of regulation; of the course
of proposed measures of the national gov
eminent looking to additional restraint upon
corporation powers and admlnlstratiof' es-
pecially in the issuing of bonds and STOCKS
and the fixing Of valuations of railroads
with view to traffic charges to be per-
mtted to the railroads. The impression
of all this discussion has beenN greatly
heightened by the course of prominent men
in the railroad and banking world, when
was construed as an indication of the keen
anxiety they were laboring under OF the
prospect offered by this course of events:
The attitude of appeal to the public and
the government authorities which this
course suggests, has awakened the appre-
hension of holders of stocks.
This is especially true, OF course, OF
speculative holders: but the more perma-
nent investment holders have been affected
also to some extent. The assumption has
gained ground in the Wall street district
that this was the feeling OF the great con-
trolling investors themselves in the lead
ing railroad systems of the country and
the fear has taken hold of the speculative
imagination that holders of securities Of
this pre-emnent class were unloading their
holdings Unfortunately in spirit of ut
ter hopelessness of the future earning or
dividend paying power to their properties.
White House influence.
Early in the week this feeling was some
what allayed in speculative circles by the
visit of J. P. Morgan to Washington and
the announcement that conference was
to be had between President Roosevelt and
the railroad presidents TO discuss the situa-
ton. This incident created great impress
sion on speculative sentiment, although the
ideas of what was to be done that would
change conditions were of the vaguest.
When the outpouring of stocks began again
the fact that such step was considered
desirable and necessary by SO influential a
banking representative only served to ag-
graVate the disquiet.
BY Wednesday also there had developed
a pinch in the money market. caused by
the preparations for the heavy require
ments OF March 49, including large divi-
dend payments and stock and railroad note
subscriptions. This necessitated some call
ing of loans by the banks and the result
was selling of stocks. The loan contrac-
ton seemed to reach suddenly to accounts
that had proved invulnerable to previous
pressure and the first moderate outpour-