Evening star., 1926-10-24

got an awful at
tack of nerves and had to call in a
man who was then a prominent
financial writer, and who has since
become high up in Government affairs
to help me out. 1t was wonderful
relief when he took over the dictation
II is curious to look back to 1897
and recall what we used to write
about at that time. There was a
revolution down in Cuba, and we spent
quite a bit of the daily articles dis
cussing this. But more impOrta nj
than anything else was yellow fever
This dread disease tnow matter OF
history in The United States, thanks
10 the Public Health Service) used
10 appear regularly in the late
Summer and early Autumn. and the
market was terribly sensitive to the
varying reports on the subject
Advices would come saying that there
were two more yellow fever cases In
New Orleans" and prices would break
couple of points.
The weather map used to be
studied with the greatest interest. for
with the approch of colder tempera-
lures the fever would he checked.
Then we were accustomed to say, The
market went higher to day because OF
colder weather in the South and the
absence of new yellow fever cases.
Two big industrial stocks at that
time were American Sugar and
Chicago Gas, the latter now known
as the Peoples Gas Co. of Chicago.
These stocks. along with the old
American Tobacco, f1uctuated wildly.
do not think that anybody was ever
able to heat American Sugar-that ls.
for any length Of time. 1t had habit
of always moving against the market.
Spectators would buy the stock while
prices elswhere were going up. only
TO see it break violently. In the midst
of bear market; with everything
going to pieces, the traders would
sell "Sugar''-and find themselves
taking in their short contracts before
long to 10 points higher.
AS to the rails, Northern Pacific
paid three assessments and after
these were tackled on to the price
sold as low as 211. Four years later,
in the famous panic, the same stock
sold at $1,000. l remember a relative
of mine lying awake nights worrying
about his speculation in Union Pacific
at SIG. with two assessments paid,
and finally selling out at consider
able loss. In 1909, II years after.
ward, Union Pacific sold at $219.
Reading Slow Mover.
Reading was selling around SIS per
share and used to move not more
than half point a month. 1t was a
joke to talk about buying Reading at
that time. We used to refer con-
temptiously to Reading and also to
Southern Pacific. which was in about
the same position, as very low-priced
rails which could not be budged.
James r. keene was the big leader
at that time The market would
break and people would ask what was
the matter. The reply would be, Jim
keene is selling stocks all around the
room" keene had the reputation of
being usually bear. but he could
turn the other way when he found
too much company on the short side.
Big operators like keene cut far
more of a figure then than they do
nowadays. A market of 500. 900 shares
was a great big market. Set beside
the 100000 to 100000 shares daily
trading which Wall Street has been
accustomed to in late years. the big
days of 80 years ago are dwarfed
The autumn of 1897 was not par
t;c,Ilarly interesting, nothing like the
period II months before. In August.
1896. William j. Bryan. running for
the presidency, made his famous
Madison Square Garden speech. and
tn" next day the bottom fell out of
things Prices reached lower levels
1aan they We're destined to see in a
generation.
Was In-Between Time.
Everybody thought that with the
Republican victory in November there
would he something like boom, hut
there WAS not. There was a tenn.
r. NY rise. which fattened out be-
use business conditions had heen so
l"nc depressed with commodity prices
:" low that recovery was very slow.
l. was an in-hetveen-season time
th't We were writing about - wears
Rco. The excited happenings Law he.
hind and ahead.
was still a youncster when I
wrote about the Maine explosion in
J 'Ntna lIarhor in the late Winter Of
1875. There was. of course a wide.
open break. hut it did not last more
them day. Then prices began to
IAl'ion and To discount the inevitable
I. ~ rlCan triumph.
| shall never forget MAY / 1925
SvhNn word came of the victory of
>ianiia Bay. This precipitated a
feadlonc buying movement and the
3,i mtr1et kept up during the
Ir"at"r part of the following Summer.
The principal difference between
The situation of 1897 and that Of
J916 les in credit conditions. Almost
al The Federal Reserve System. the
1'3ll of tn" year Witnessed money
pinch which would upset the Stock
Exchange. Now this contingency. If
rot impuSsihle. is Al least improba BILE
t'nd"r ;he Federal Reserve, the banks
j. Ve practically pooled their re-
sources. If there were stringency
g. ono section of the country il could
h. readily relieved by the transfer of
funds from other districts.
IN the old times il WAS a regular
rrncesS for the interior banks to call
j. their Wall Street loans in order
t. NEE. tho financial requirements of
THE crop moving. This would force
Cr less decline. depending upon
whether or not there had been much
Of hull speculation in the preceding
Summer. Nowadays there Is no
worry about credit Money is not
apt TO get above per cent. whereas.
one inc day in December. 1899. II
was quoted at $50. J. f. keene was
rn top Of the market that day.
In the panic of 1907. on October IS,
when the knickerbocker Trust Co.
failed. call money was simply un-
nhtainable One broker was instructed
20 go into the money crowd and
borrow a half milion-a very small
emount-and pay the limit whatever
s. was. He could not get an offer
after bidding 1no and 200 per cent.
These were the old conditions. They
can never he repeated now with the
Federal Reserve Bank willing to re-
discount at comparatively low rates
for member banks, with ample re-
sources, as they all have.