The news-democrat. (Providence, R.I.) 1906-1909, 1907-12-31
HISTORY
MADE IN PAST YEAR

New York, Dec. S1.-The year 1907 has
been one In which much financial history
mas been made. IL will 60 down with
1857, 1873 and 1893 as one Of the panic
years In American finance. but despite
| the remarkable strain TO which the finan-
cial structure has been subjected, the
year closes with conditions stronger and
safer than they were when the year be-
gan.
The year opened with the feeling in
conservative quarters that speculation
had already been carried TO an unwar-
ranted height and that prudence was i'm
posed by conditions upon bankers and to
some extent throughout the year. and
tnat there was scarcity OF capital for
absorbing new securities, was indicated
by the diminished transactions in stocks
and bonds on the New York Stock Ex-
change.
While the number Of shares Of stock
dealt In up to Christmas OF 1907 did not
ran below that OF normal years prior to
1900, IL was very much less than for that
year and for 1906. The banner year prior
TO 1908 was 1901, when the number OF
shares dealt In was se5.517.354
There was decline TO I60.7is.s6S shares
In the depression OF 1903. and recovery
TO 263O40,s93 In 1905 and 2ss, s,42i234 In 1906
The number of shares dealt I'm in 1907 fell
to 19bl69.la2
The field OF bonds In 1901 showed sales
amounting 10 s999. i04. 800. which fell In 1903
to 1854. .20o,S $50. The maximum was attain
ed In 1904, when sales were $1,000. $40 $50
but was not greatly reduced In 1905. when
sales stood at s1.01s,590 42o. Signs OF thu
exhaustion OF capital were already ar
forded in 1906 by the decline of such sales
1907
Tho source of the pressure upon the
money market is indicated by the large
issues OF securities which took place dur
ing several years prior TO the crisis.
The statistics compiled by a leading
financial journal in Brussels showed that
the total issues throughout the world
averaged for the hve years ending with
1905 about SO. 100. 10000 annually. A con-
siderable proportion of these issues In 1902
and 1903 were refunding operations, but
In the next three years--lo04. 1905 and 1905
total issues were about 1889 10000. OF
which s2.6B.G0,000 were for conversions
or refunding operations. and ss,921. 900. 900
represented new demands for capital
In the United States issues of stocks
Tor the first II months OF 1907 were s757.-
$3.50 and Of bonds and notes sl.073, &c.,
600, making UP total Of 1881 -349.5oo.
THE SILENT PANIC"
The extent to which capital resources
had been strained was not revealed In a
striking manner TO the general public
until the silent panic" OF March 14-now
almost overshadowed by later events but
at the time one OF the most serious .eud
remarkable breaks which the market mas
ever suffered occurred.
The loss OF ~ points IN An1algamsted
Copper in single day. 81 points in Amer.
ican Smelling, p in Reading and % in
Union Pacific, added TO considerable pre-.
vlous declines at a slower rate wiped
out margins. compelled the calling OF
loans and wrecked the fortunes OF many
speculators
The market recovered only slowly dur
ing the spring and carly summer. 10 suf-
Ter iiew reactions In August; but IL was
not until mid-October that the storm
broke In all Its force with the collapse
OF the corner In United Copper the ap-
peal OF the Morse Heinze banks 10 the
Clearing House for help, and the refusal
10 extend such help until the old control
was eliminated.
Events moved fast on the heels OF these
revelations. The Knickerbocker Trust
company was closed Oct q. after paying
out about 100000 In cash. and runs
began upon the Trust Company OF Amerl-
"a. which called for the disbursement OF
s4,ooo0oo. and upon the Lincoln Trust
company. which suffered nearly propor-
tlonate loss OF deposits. The suspension
or cash payments By practically all the
banks and the decision on Saturday, Oct
%, to issue Clearing House certificates on
the following Monday marked the Gull
minating stages OF the crisis.
Secretary Cortelyou hurried TO New
York and deposited about SS0.0oOoO OF
public money In the national banks Of the
city.
Notwithstanding these measures OF re-
lief the country banks and the public
swallowed up IN the week ending Nov. 2
about SSo.Wgo In currency. Government
deposits amounting 20 nearly s3co.coD
disappeared and loss IN cash reserves
or the banks vas disclosed OF 500 G0i 500
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