The Washington herald., 1907-03-16
WALL STREET NOTES
Storm Over and Not a Single
Failure Reported.
GO UP IN LEAPS AND BOUNDS
Stocks as Much as Points Higher
Than Ticker Indicates - CorteI-
Banks-United States Steel Emerges
from the Panic with Flying COIOrH.

New York, March 15.-When the market
opened to-day almost every broker recog-
nized that the storm had blown over
and that those who had suffered most
would be afforded an opportunity 10 re-
pair the damages. About the only un-
certainty was whether or not the clearing
house sheets would go through all right
and when shortly after II o'clock 1t was
announced that this had really occurred
the announcement was hailed with
genuine satisfaction in almost every
quarter
While here and there it was intimated
that the time had hardly come for con-
gratulations. the subject of the possibility
of failures might continue to form good
part Of Wall street discussion for some
time to come. the fact that the panic
had SO far caused no wrecks could not
be regarded otherwise than as most graft
fying, and those WhO had been waiting
for definite information on the subject
lost no time putting in their buying or
GERS. with the result that the market.
strong before, rushed up at a rate which
had il continued would before the close
have restored all the losses of the pre-
ceding day.
That it might keep up a miracle would
have TO be wrought but no one expected
any nearer approach to a miracle than
what was disclosed in the clearing house
sheets. Therefore. about noon there Was
quite a little profit taking by those who
had bought on Friday and selling By
others who expected to find opportunities
to buy back on reactions. Reactions did
occur later, but were followed by re-
newed and greater OUtbursts Of strength.
As an instance Of the way stocks bound
ed up at about noon, the fact that when
the ticket was recording prices Of 80 or q
fraction over. for AmaIgamated Copper.
sales OF this stock were being made on
the board at %. Such differences be
tween the prices recorded on the ticker
and the transactions just being made on
the board are not unusual in times of
tremendous activity. when the ticker.
from inability TO record quotations fast
enough, falls as much as fifteen or TWEEN
~ minutes behind the market. But this
was not the case to-day, for the ticker
was not more than couple of minutes
behind, and a striking of advancing quo
tatioHs ticked out by the instrument
showed customers Of commission houses
how II was that their orders 10 buy at
20 brought back the answer from the
board; "Amalgamated now selling at % "
4 condition In the market ike that in
dicated above in the jump in Amalga-
mated-which. by the way. found its
counterpart in an equally sensational
movement Of Reading-was the antithesis
Of what occurred in the last hour on Fri
day, being. while it lasted. very fair
imitation of a bear panic
One Of the stories that had Il good deal
10 do with the improvement in sentiment
was that two of the large Wall street
banks. would avail themselves Of the
terms Of Secretary Cortelyou's offer 70
s25G)0, 600 government Is bv turn
ing in the full amount in the very near
future In most places it was doubted
whether the two institutions mentioned
were prepared 70 offer the full amount
of bonds that the Secretary has an
nounced his Intention 20 accept. but the
belief was general that they could turn
In enough to bring an important measure
OF relief to the money market
II would be hard 10 say what was the
factor that contributed most 20 the won
derful Improvement tn the market that
made opening prices. in many cases. be-
tween . sad 10 points higher than those
al the close Of the preceding DAY. but
one thing is pretty certain. from the
testimony Of some of the ablest finao-
-ierS in Wall street-if il could have been
early on Thursday that prices
vert going to break wide open as they
aid In the last hour Of business on that
day there would have been more bar
Sain-hunters around, and the history OF
TIE day might have been entirely differ /
ent. As il is, however. the panic of 1917
will go down in history as in several re- /
speets the most remarkable that has ever
occurred.
One Of the most widely circulated and
generally credited reports of Union Pa
citic was that a large house had on
Thursday sold 10000 shares of this stock
the holdings Of a member Of (
one of the richest families in Americ., 4
There were circumstances about the story
N question that gaze 1t an air of proba- /
)ilIty, and the whole effect was TO make
il somewhat easier to answer the aucs- 1
lion uppermOst in the minds of most peo-
ole-Where did all The liquidation come /
Tom2 There was another stoTy-less 4
widely circulated. but perhaps not credit /
I'd at all-that cOntrc! of the Union Pa /
,iic road had changed hands.
Taking the story about the sale of .
very large block Of Union Pacific by a 1
7oung capitalist as an instance of what 7
nay have happened. the cause of the 4
panic seems reasonably clear Months ago
men who were comparatively rich bought /
stocks for long pull. putting up mar /
gins OF as much as 90 or so points. be-
ievtng that these would be sufficient 10 4
AIRY their holdings through anything /
hat could possibly arise in the stock /
market Union Pacific was one eff the /
avorlte mediums for this kind of invest /
nent possibly for the reason that in
iiders who had stock for sale took everY
10 set forth its merits in the
most attractive form-and whom the per
astent decline cut down these margins
he technical position became such that
he stock was an easy prey for the bear
'hque. Brokers carrying such accounts
'aEed for more margin. and got Il in
many cases. but only to postpone the evil
lay when the stocks would have to be
ioid for what they would bring When 50
'oint margins were exhausted, II was COM
'aratively easy for the bears to take
way the additional 10 points or so that
vas put up for the knowledge that bro I
Ierage houses had found it something like
pulling eye teeth to extract additional
margin proved an irresistible incentive ia
'earish endeavor because with the decline
,Gnle a Curtaiinent of bfIvioe rox.yor -, !