The daily morning journal and courier., 1907-10-25
LATE FEATURES OF
 THE STOCK MARKET
Morgan's Loaning of $30,00O,-
 900 on the Floor.
CHECKS FALL IN STOCKS
Heavy Break in Prices and
 Then a Sharp Rally.

ASdVy bredk III FI1CeS aAu
 Then a Sharp Rally.
 Things looked squally enough on the
 stock exchange yesterday but all of
 sudden the market braced up, for J.
 P. Morgan had stepped in with an
 offer to loan $SO,O0O,OOO
 It was up to MT. Morgan's an-
 nouncement one of the widest times
 ever known on the New York Stock exchange Call money had advanced
 to 100 per cent and demoralization was reigning.
 The announcement from MT. Morgan had an electrical effect. Stocks which had been tumbling the minute before 1 and 2 points between sales rushed upward even faster than they had fal- len. It was one of the most remark able changes in tone that has ever taken place on the exchange. Union Pacific, which had early in the day
 sold at 110 1-2, had gone to par, when the report that an immense block of
 money would be thrown into the loan
 crowd caused it to rush upward at
 once to 106 Reading, which had brolz-
 en from 79 1-2 to 70 1-2, rose to 76.
 Northern Pacific, which had early sold
 at no 3-4, had tumbled to 100 9-4, but 1t rallied to 1O5 1-2. Almost equally as-
 tonishing recoveries were made by other prominent stocks. The money situation had dominated the market throughout the day and the under standing that relief was coming had instantaneous influence.
 The news reached the Street before the opening of business that three of the institutions involved in last weeks troubles of the Mercantile bank had closed their doors, and that another concern in Plttsburg had suspended. This was followed by news that the run on the Trust company of America was still in progress, and that similar runs had started on one or two of the uptown trust companies These an- lnouncements successively made, to- lgether with the fact that call money was already held at the extraordinary figure of 50 per cent, threw the stock market into state of semi-panic again.
 The extremely violent decline in prices, during the four first hours was caused by the local deadlock over fa- cllltles for credit. A market cannot ha advanced, and can be but indifferentIv supported, except when bankers and 1Orokers are able to raise money on se- ,eurlties. It was the difficulty of do- ing this early yesterday from domestic sources, despite a bid of 100 per cent. VT hlgher on the stock exchange. and the virtual interruption of the chan neis of international exchange. which made the violent liquidation unavoid- able. But precisely as occurred on Jnlv zo' 1855, the darkest day of the panic or that year, 1t soon became manifest yesterday that the fall in stocks was the means of breaking the obstacles in the way of relief through foreign cani- t%al' At price, Europe will take fbe .stocks and provide the sorelv-neadod credit; the question always is. to reach that price. Apparently, it was reached by the panicky break around 9 n m the immediately subsequent offer. on the stock exchange, of an abundant supply Of money, stopped the decline 4hstdnter, and turned an overwhelnino coliapse into violent recovery.
 What caused the terrific break in +bo afternoon, when Union Pacific crashed down to par and other railroad issues tell from 5 to 10 points, was the ina plllty of brokerage houses to obtain money for their needs at any price
 There was a very general feeling that the large deposits in the national banks ordered by Secretary Cortelyou and the various measures adopted by promin- ent financiers would result in material relief to the situation.
 Early in the day the First National bank loaned $S,OOO,OOO at 50 per cent, and $S00,000 additional was loaned bv the National Copper bank at that fig ure The National City bank later placed $2,50OOOO on the floor of the Stock exchange to be loaned, as on Wednesday, in $5O,OoO lots at 6 per cent. Bankers and brokers having in charge the placing of loans for John D. Rocke- feller were instructed to make all loans at per cent.
 A few isolated loans were reported at 100 per cent, but it was undoubtedly true that 150 or 200 per cent. would at one time have gladly been paid; the money simply could not be had at any price. Under these circumstances there was only one recourse. Commission 1 houses which were holding securities | for their customers on margin were obliged to sell them to cash buyers for whatever the latter would give.
 It was reported that the work of l support to the market in the l where 1t would be most effec- tive had been turned over by the lead ! ing financial interests to the master hand of James R. Keene. MT. Keene | was thought to be especially taking ! |care of United States Steel common. In ! |tne early trading the bears put out ]