The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1907-10-27
NEW YORK STOCKS
ARE NOW ON THE
BARGAIN COUNTER
Margin Trading Suspended,
and Cash Only Will Buy
Stocks.
Wall St. Severely Shaken.
Resume of Conditions and
Consideration of Future.

OOQSlQGI dIlOll Vi QlliI .
NEW YORK, oct 26.-The events Of
the past week in the New York stock
market were almost sensational enough
to impress themselves Upon the mihcs
OF interested parties Gor years 10 come
In the distant future, when the market
is having a phenomenal break traders
viii compare ii with the FIVE days end
ing october =, 1897.
The opening day Of the week gave no
Indication Of terrible financial disasters
and the awful declines in stocks that
would materialize before the cad of the
week It locked very much as if the
worst was over The ore bank in
trouble had apparently been tiled over.
its speculative officials and directors
eliminated. a new president elected, ami
everything appeared roseatc. Monday ;
gains were quite marked, in some m
stances running up to -four points Or
even better. The closing was near the
ton and wall Street brcathed easier.
while nearly everything, with some eX-
captions advanced. and the speculative
and investment fraternity began TO COLI
cratulate each other on the fact that
the worst was over.
Resting on a Volcano.
But instead of being over the market
was simply resting on volcano, not
inactive but simply inert and awaiting
but the signal of Tuesday morning 10
start one Of the most serious panlcs that
Wall Street has ever known.
While hope rose financial men were in
strenuous activity, conferences. and dis
cussions.
The KnickerbOckeT Trust Company
found itself in trouble and the in
vestigating committee appointed by
trust companies and national banks re-
fused it aid. The elimination of old Of
.fcials and directors in whom there ap-
peared to be. for the time being at least.
an utter lack of confidence, did not still
the clamor of the crowds after the>
money-some SOS 200. 900. representing the
deposits in the bank. Bankers knowing
the condition of the KnickerbOckeT bet
ter than the people were in the front
row with messenger boys and big
checks. One million was paid 10 one boy
and then another drew out $3.50, 900. and
il became apparent 10 the troubled Of
hcials that they might just as well close
and conserve their resources as to pay
cash to the first in line and leave moth
ing for the late Corners.
The Knickerbocker Trust Company
was bad enough, it took the wind out
of the sails of the stock market, en-
couruged the lubilant bears to re-
rewed pressure. and gave the wiole
market a hard shake
Pittsburg, Too.
And Pittsburg did the rest. The ,e
ceivership of the various Westinghouse
industries and the suspension of a hIn
Pittsburg trust company was a blow
in the solar pIexus of the stock market
j may not be a dignifed term, but
those who watched prices melt away be
fore the wild flood Of liquidation. will
admit that it is expressive.
The Pittsburg stock exchange closed
iis doors. and a holiday was announced
"a strenuous holiday in which the mem
bers will try and put their houses in
order against the day of opening.
Disaster Follows Disaster.
Then came disaster after disaster
Runs attended the opening of many
doWnJoWn and uptown banks, and
with runs came a number of failures
and many Of them failures of solvent
institutions, called upon in dav L
realize on their stocks and bonds on g
market thar did not want stock or bond,
except at a tremendous sacrifice. and
some Of the smaller Institutions. an1
one or two large ones closed their doors
willing and anxious that their asset.
should be carefully conserved By a re
cciver rather than dissIpated at auctio.
or paid out to a small percentage OF
legitimate owners.
Values Faded Away.
Values on the highest grade Of securi-
ties faded away by dollars and tens OF
dollars. No one knew Just s,here the
eruption would hit next. IIigh grad,
stocks were sold by men who had held
them through all the years liquidation
serene and confident al their merit
They were also sold by others to fur
nIsh the wherewhhal 10 protect Other
securities.
The Crux Of the Week.
And then on Thursday afternoon
shortly before the close. came the cruz
OF the whole week Only two firms OF
the stock exchange had gone down. Al
HAD cleared safely and then came thu
demand for money to take Up the day.
purchases, but there was no money t,
be had. Secretary CortelyOu was OF
hand watching the panic, for it was
panic, and J. Pierpont Morgan was ais,
on deck. Money advanced to 100 pc
cent and with nothing to be had, stoclz
again started on a drastic break, 81 o
s. a share, with EVIDENCES Of the bot
tom falling out and fear of lightniB
striking even the most solid fnan
eial Institutions.
II was then that the absence of Nor
gan and Rockefeller from the bull sid
of the market for many months proves
fortunate. They were able, with III
assistance of the banks. the latter. Il
turn, being helped by the Government
to send S25,OO0 600 into the market fl
one lump and the retreat was stopped
stocks jumped point after point until a
of the loss on Thursday afternoon ha
been recCvered,
Market Tender.
Erfday the market again gave favor