The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-10-24
CONFUSION IN
STOCK CIRCLES
Violent Liquidation for Pitts
\, burg Account Throws Wall
4 Street Into Fever.
mac. LAUGHTER OF SECURITIES
iearl
ne
lea JCiAL POINT HAS BEEN
ri REACHED.
LAUGHTER OF SECURITIES

New York, Oct. 23.-Violent perturbation
jin today's stock market was taken for
granted. In view of the serious nature of
the days news. both from the trust COM
panies and the industrial field The sem
sitiveness of the market as a barometer
of conditions might have left it open sup
posedly to even more serious violence, in
view of the character of the news. As
matter of fact there was a considerable
and conspicuous fragment of the list of
securities which was but slightly affect
ed by the acute depression at other points
ana by the severe StrinSency or money.
The resistance of these points In the list
must have been due to protective meas
ureS by money resources adequate 10 ef-
feet this end. Their comparative stability
suggested something of suspense, also, IN
the attitude of waiting for the working
out of measures to fortify the situation.
The eager attention of the whole of the
progress of these measures, or on what
might be the final decision of the great
financial banking powers who had the
matter in hand II was felt that on the
decision of these conferences might hinge
the restriction of the field of the trou-
bles which have thrown confusion into
financial affairs. The failure of the
knickerbocker Trust company to reopen
Its doors today and the new run precipi-
tated on the Trust Company of America
by its request for assistance from other
institutions offered the surface evidence
OF the trouble.
closing of the Pittsburg stock exchange
and the reported embarrassment of indus
trial companies as a cause.
The direct force of this latter factor on
the stock market was a testimony of the
Importance of Pittsburg in speculative ac-
tivity. Sales of various stocks for Pitts
burg account in New York were enormous
and made a prime influence in the weak
WaGfin
for which the market is narrow at any
time, was slaughtered during the urgent
liquidation.
The reported financial embarrassment of
the company was the sufficient explana-
ton. General Electric was in close SYM
pathy, owing to the analogous business
field OF the two companies. The effect
of the Westinghouse incident was particu-
larry seXvere on the industrial securities
generally and many of these disclosed the
aruflcial character OF the quotations
which have been established for them
and the narrow market existing for any
genuine liquidation in them.
support in this part of the list seemed
out of the question. People who find
themselves Involved in these unmarked
able stocks. are forced to hquidate other
securities to pay off loans. 1t was Dor
rowing of an urgent situation such as
this, that forced the high call loan rate
at the stock exchange. A rate of 30 per
cent was made on a small call loan Ap-
rarently the fears of the effect from a
contraction of credits applied more to en-
terprises of an industrial nature than TO
the transportation business and seusa
tlonal declines were made in a large num-
Der OF inactive stocks of all descriptions
In spite of the hasty fortifying of re-
serves. which was going on. many power
ful banks renewed standing call loans at
8 per cent, and at other rates materially
below the 20 per cent. which was called
the ruling rate. The supplying of funds
IN this way was part of the far reaching
policy in force to keep down panic and
TO save the situation
me sub-treasury statement showed a
gain by the banks from that institution
OF S4,Sll,V0 on yesterdays operations and
IL was known that the presence at the
government institution of the secretary
or the treasury insured additional relief
measures by the government to safe
guard the position. 1t was credibly re-
ported that so. 900 coo of government funds
were deposited with the New York banks
during the day. The knowledge of this
fact, the continuance throughout the day
or payments tc depositors by the Trust
Company OF America and the fact that
nothing like a run developed on any 9th
er institution dispersed the gloomy clouds
Whlch oVerhung mems minds. The sub
stantldl rally i'll stocks during the later
part or the day was the reflection of this
The further course of events in the trust
company situation is regarded yet as the
crucial test of the position.
Bonds were very weak. The Westing-
house convertible bonds shared in the
generalization of the stock market and
other convertible and speculative issues
made wide declines Total sales. mar
value, s4.126,000. United States bonds were
unchanged on call