New-York tribune., 1907-10-23
-nlisted
cIosins nrioes of aetive bonas dad In vlth
STOCK MARKET OPERATIONS.

The stock market had to confront the most
serious outlook yesterday morning that it has
experienced TO date in the tremendous decline
which has been in progress throughout the pres
ent year, and it was small wonder that 1t suf
fered declines in all the active stocks which took
them TO new low records for the current move
ment. The suspension of q powerful bankin z
institution like the Knickerbocker Trust Com
pany is no everyday matter and one before
which traders in securities may well quail. Fear
Of what might happen caused a decidedly weak
, opening, and when the worst Of these fears We're
. realzed and payment was suspended at all the
4 Offices of the trust company the trading became
, thoroughly demoralized and the plunge down
ward was so rapid that II only the power
ful support Of important banking interests which
made its appearance in the market at the psv-
Geological moment that averted a panic. Call
money shot I'D 10 20 per cent and with rImors
flying thick and fast that other large banking
institutions were shaty II was small wonder
that the prices Of leading securities dropped
from five TO ten points before a recovery set in
/ This recovery began TO take place about the
middle Of the day and it of sufficient pro-
portions in most OF the speculative favorltes 10
reduce the net losses for the day TO the neigh
borhOOd Of five points.
At the low point Union Pacific was down 81
points, St Paul ~, Northern Pacihc 8ss, Great
Northern preferred 612. American Smelling com
mon 55s and the other active railroad and In
dustrlal shares from TO points. The recov-
cry served TO reduce the net declines 30 less
appalling figures. The failure Of a Stock Fx-
change house just before the close did not have
much if any effect on prices, the market appar-
enty taking the view that after what IL had
already passed through since trading began at
10 o'clock, it was immune 10 all other bad news
unless Of similarly gigantic proportions In
deed on the whole many close observers Of the
days trading thought that the market had be-
AaFed decidedly well IN view Of what IL had
I been forced 70 face
Considerable strength was shown throughout
the trading in copper and the steels and srneIt-
ers too, after dip Of five points stood up much
better under selling pressure than it has done
or late. These stocks refused to drop below
the low records which they had recently made
and, indeed, smelters did not go within two
points Of its former low price for the move
ment The railroads. on the other hand were
at times pitifully weak. and Union Pacific the
Two Hil stocks. Baltimore & Ohio. Atchison and
southern Pacific made new low prices for the
year.
OF course, there was the usual sacrificing Of
stocks which is always in evidence on semi
panic days when timid investors become i'm
bued with the idea that there is no bottom to
the market and sell out for whatever is offered
1t is the buyers on these occasions who always
get the bargains There was also doubtless
a great deal Of liquidation Of stock which bro
kers would no longer carry for customers on
insufficient margins. The banks and trust com
panies. not caring to be caught in the predica-
ment which faced the Knickerbocker Trust
called a good many loans and this was cause
for more Of the urgent selling which was so
! conspicuous at times in the market
When the price Of call money mounted up to
80 per cent and over. Speyer & Co. Kuhn, Loeb
& Co and the National City Bank began to put
out large loans at per cent. and this heIped
in the restoration of confidence among the
brokers who facing the unpleasant outlook
Of selling the stocks they were carving in a
panicky market or paying an exorbitant price
for money. At the close of the market money
on call was freely offered at per cent