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The break started shortly before 1 o'clock, and when the
market closed, some two hours later, quotations had
slumped in the interval anywhere from 1 to 20 points.
Many fortunes that had been made in the last six months
by men who never before had a dollar, and who,
encouraged by their great successes in the phenomenal
market since Mr. McKinley's election had "pyramided"
their accounts, were in some cases wholly wiped out as a
result of the crash, and others so considerably reduced
that little remains. Even some of the so-called "big"
men have been badly hit, and there was talk also of
serious trouble on the part of some brokerage houses.
So threatening, indeed, is the situation that
conferences of important bankers and banking interests
were held late last evening to discuss the matter and to
consider ways and means to prevent a far-reaching
financial catastrophe.
Hence is was that after the market's close last night
there was gloom in many parts of the financial district,
where for some months past only smiling faces have been
seen. The youths and others, who, elated by their
new-found fortunes, have been slapping one another on
the back and half playfully, half in earnest, referred
to themselves as "financiers," were chewing the "bitter
cud" of despair and disaster, and wondering how it all
happened. These are the men of whom before election Wall
Street had never heard. Of many of them Wall Street will
probably never again hear.
When the Break Came
The break itself came as out of a clear sky. All
speculative eyes on the Street had in the early dealings
been centered upon a further phenomenal rise in Northern
Pacific common stock, which, the "corner" in it still
operating, had jumped up by leaps and bounds to 180, as
compared with Tuesday's close of 143 1/2- a gain of 70
full points in three days had then reacted to 145, only
again to advance from that figure a dozen points or
more, with $200 bid for it after the close of the
market, and $70 a share paid for the use of it over
night by the shorts. It was all so spectacular, all so
interesting, all so phenomenal, that concerning the rest
of the market the Street, generally, gave little serious
heed and certainly saw little prospect or probability of
the collapse that came so soon afterward.
Here and there some of the more conservative in the
Street shook their heads ominously and declared that any
such "corner" was always disastrous to the general
market. But the rank and file paid no attention to these
warnings and went blithely ahead buying stocks and
sending them higher.
Of a sudden, Burlington stock, which had been more or
less heavy all the morning, began to show unmistakable
signs of weakness, while almost coincidently the Erie
issues were depressed. The rank and file watched and
wondered, and as they watched, the prices of the issues
went lower still. Then in the general list, prices also
began to fall. First it was St. Paul, then it was
Missouri Pacific, and then it was Union Pacific. Finally
the whole market was declining. Some holders of stocks
not knowing the why and the wherefore of it and thinking
it only one of the many ordinary reactions that have
from time to time appeared in the market since election,
"sat" on their stocks and looked for a recovery. Other
holders, more timid if might be more conservative, of
even less able to hold proceeded, however, to part with
their holdings. Soon the contagion spread, the
professional bears on the floor of the Exchange the
while aiding in this by hammering the whole list.
Quotations thereupon began to break, not quarter or half
points between sales, but one and two points. That
settled it. The entire Street proceeded to sell. Where
before the cry had been only. "Buy, buy, buy," it
became, "Sell, sell, sell." Stocks were literally
tumbled out sold without rhyme or without
reason-anything "to get out."
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