The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-03-17
''PAN|C" IS STILL
4 GREAT MYSTERY
No One Knows Who Has
Been Throwing Stocks
on the Market.
MONEY PINCH
PRIMARY CAUSE
That There Have Been No Fail
ures Shows That the Blow
Fell or Great Moneyed
Kings, Who Were
Able to Weather
the Storm.

NEW YORK. March 1s.--Thc col
lapse In prices 0f stocks which has
occurred this week has been so sud.
den and 80 violent as TO leave opinion
dazed over the meaning OF the demon
stration and it's probable Interior con-
sequences.
Tho extent of the declines has been
40 portentous, the volume OF the Offer
ings which have dcluged the market
have been 80 overwhelming. and, at 4
the Same time, the usual consequences |
of failures and financial disasters have |
been 30 entirely lacking as to leave |
an uncanny effect on the minds OF i
observers.
Tho extent of the slump is tho more
remarkable as coming on the heels
OF prolonged decline. which had al
ready presumably gone far to dis
count tho unfavorablc factors which
were supposed to be the influence on
the market. Tho cumulative effect OF
the last spasmodic drop was all the
more acute for this reason. The fall
in prices IL 80 much greater compared
with such previous occasion OF the
May panic In 1901. with which the
present panic is compared In regard
to indiscrImnate unloading Of stocks.
as 1t follows such prolonged fail,
while tho 1901 panic broke in upon a
period of buoyant speculation Mt ris.
ing prices.
Restricting Laws.
The stock discussion in Wall Street for
some time past has bene of laws passed
by vurious State Legislatures for the re-
striction OF railroad charges and for other
aat ur.f t.fA Az.
proposed measures OF tho national gov
n ernment looking 10 additional restraint
upon corporation powers and administr7t-
ton. and especially In the issuing OF
bonds and stocks and the fixing OF val
uations OF railroads which have added to
traffic charges
The impression of all this discussion has
been greatly heightened by the course OF
prominent men In the railroad and bank
lng world, which WAS construed as an In.
dicaton of the keen anxiety they were
laoorlng under for the prospect OF the
roads IN consequence Of this course Of
events. The attitude of the public and
the government authorities, which this
course suggests, has awakened the APP
prehenslon or holders OF stocks. This Is
especially true, of course, OF speculative
holders. but the more permanent invest
ment holders have been affected also to
some extent.
Ihc assumption has gained ground in
fhe Wall Street district that this was
the feeling OF the great controlling In
vestors themselves In the leading rail-
road SYSTEMS OF the country, and the
fear has taken hold of the speculat tive
imagination that holders of securities of
this nre-em'nent class were unloading
their holdings indiscriminately In n spirlt
OF utter hopelessness OF the future earn
ing or dividend-paying power OF their
properties
Morgan's Visit Hurt.
Early In the week this feeling was
something allayed In speculative circles
by the visit OF j. p Morgan to Wash
lngton and the announcement that a
conference was to be had between Presi-
dent Roosevelt and the railroad prcsi-
dents to discuss the situation. This incl
dent created a great impression on spec,-
lative sentiment, although the ideas of
what was TO te done taht would change
conditions We're of the vaguest
When tho Outpouring of stocks be-
gan again the fact that such q step
was considered desirable and neces-
sary by so influential banking rep
rcsentative only served to aggravate
the disquiet. BY "Wednesday also there
had developed n pinch in the money
market, caused by the preparations
for til eheayy requirements of Marcel,
ments and stocS and railroad note
subscriptions.
This neccssItatcd some calling of
loans by tho banks, and tho result
was selling OF stocks
q The loan contraction seemed to reacl
suddenly to accounts that had provcG
invulnerable to previous pressure anc
tho first moderate outpourings al
stocks grow into the nvalunchcs oil
Thursday, which swclcd into pani.
conditions before the end of the lay,
Money Situation Was Bad.
The money situation must bc allowc,
lar esgllaro Of responsibility for tn,
conditions whioh have grown UP.
Tho tightness OF money Is now
worldwide, tho pressure In London ant
IN berlh belhg almost us acute as II
New York, w.
Il The yery active trade conditions cal
Tor extraordinary supplies for the cir
culation, and the result is n deplctlo,
of cash holdings in banking reserves
on whlch..to base credits,
The excessive demands for capita
10 place In fixed forms has been (,
subject OF observation for months, j
II is very generally assumed that tn
active speculation OF last fan lef
largo holdings In the hands OF me-
Of large wealth that have never sine
tHSl peeH cleH|eu MP, oWlHE 10 the per
sstence Of the general spaculatiy
public In refraining from entering tn
market. This Is supposed To accour
Tor a large part OF the forced lq,lida
hon and to explain also the absenc
hf failures due to the heavy fall Il
prices. 5 5si8 3
i& The source of the selling remain
pndisclosed, however, and the dim
splty therefore, Of forming an opinio
pn It's motives or reasonableness ar
i eicments Of continued dlsqulet In tn