The Washington herald., 1907-10-23
WALL STREET GOSSIP
Heroic Efforts to Stem Slump
Partially Successful.
LARGE HOUSES TO THE RESCUE
Enormous offerings of stocks Found
Ready Buyers in the Brokers for
Take Any Leading stock TO stop
Observation-Disclosures Money at 20.

New York Oct. 22.-Large interests lent
the most stubborn kind Of support to
prices to-day, but no support could have
wholly damned the torrent of liquidation
that constantly swept over the market.
destroying values and wiping out the
fortunes of individuals. Throughout the
forenoon the downward course of prices
was kept under some restraint, but in the
third hour the pent-up force of liquida-
ton at one time swept away the support
and the torrent burst forth carrying
prices of many of the leading stocks to
new low records for the year. 1t was
terrible test of the courage Of those who
had set themselves 10 the task OF main
tanning some semblance of order in the
trading, but they were equal to the test,
for they resumed their efforts lower
down, and succeeded in rendering such
success that sellers of stocks again found
a market 10 sell on.
Any one who wanted a reason for the
renewed outbreak of liquidation in the
stock market did not have 10 go far 10
find It. Within a stones throw Of the
stock exchange. just on the other side of
New street, there was a run on the
KnickerbOcker Trust Company. in respect
to amount Of deposits one of the largest
institutions Of it's kind in New York.
The credit of the institution had been
assailed in rumors as far back as the
middle Of last week, but little Importance
had been attached TO them at the time.
1t has rarely fallen TO the lot OF a
trader 10 witness liquidation in such vol
ume or Of such an urgent character as
he saw in some stocks to-day Ordi-
narily, a block of 1900 or 5000 shares is
accounted a large transaction and at
tracts considerable notice. but to-day in
dividual transactions in many times that
number Of shares were not infrequCnt
The first transaction in Union Pacific
included 1880 shares, and in Reading.
United States Steel, and other active is
sues sales Of enormous size were made
as If the sellers were fearful that the
loss Of a second might mean the loss
Of a market. But all these enormous
sales found buyers waiting. Brokers sup
posed TO represent the largest private
banking firms In the Western world
seemed to have unlimited orders TO buy.
not only stocks in which the house Is
known 70 be interested. but to render
support to any leading issue that threat
ened 10 throw the market into a state
of decentralization. The traders esti-
mated the purchases made by this in
teTeSt at not less than 10000 shares Of
various stocks. Seldom has support been
more urgently needed and never has it
been more consistently or more success
fully rendered.
Not until near Z o'clock was there a
transaction of call money on the floor
Of the exchange. This was something
almost without precedent for an active
day. The tenders Of money had matters
oil their own way. and two Of the largest
national banks, instead Of selzing the
opportunity afforded Of getting high rates
for their funds, put out a supply Of
per cent money.
The requirements Of brokers failed to
be satisfied and rates went up by leaps
and bounds, until finally in the last hour,
they rose as high as 70 per cent. Many
banks. on account Of nervousness over
the situation refused 70 make loans on
almost any terms. 1t was an anxious day
in many respects, and the street showed
ii. for the crowds in the financial dis
trict were far larger than usual and
there were great number of faces that
gave visible signs of care and worry.
while not only messengers. but men OF
dignity and mature years. ran hither
and thitheT with a speed that Indicated
the pressing needs Of the hour. Il was
u heaTt-breaking day.