MONEY PANIC.

Dominion, Volume 1, Issue 18, 16 October 1907, Page 7

MONEY PANIC.

WEAKNESS IN LONDON AND NEW YORK. CONTENDING MILLIONAIRES. MORGAN FACTION BUYING HEAVILY. BY TEIjEOBAPII—I'BESS ASSOCIATION—COPYRIGHT. (llec. Oct. 15, y.30 p.m.) London, October 15. . Thoro is general depression on the Stock Exchango owing to tho weakness of tho American markots. Tho " Daily Express's" Now York correspondont states that Air. Pierpont Morgan and other millionaires are buying heavily, in order to stop tho demoralisation of tho Stock Market. ■ WALL 'STREET ONCE MORE.

Just ns tho money markets of the world give signs of oasing, Wall Street engineers a disturbance. A cablo message publisbcd yesterday states that there is n slump on the New. York Exchange resembling the March panic, and that it is attributed to a rumour that Air.-Hah'intnn is reducing'his holdings in railways (which ho denies). Tho crash of March 14 was the result of o, financial tusslo between tho Harriman group on tho one hand, nnd the Pierpont Morgan group on the other; and possibly the cablegram which we publish this morning, read in conjunction with that which appeared yesterday, may bo regarded, as indicating that hiiitory is repeating itself. It was reported on Mliroh Iβ that Mr. Harriman was embnrassod, nnd had lost control of tho Union Pacific Railway to., Mr. Pioi'pont Morgan. While this conflict may have been the culminating featuro/the causes for the slump wcro more deep-rooted. Towards the end of 1306 money was very dear, and the Americans .found considerable difficulty in borrowing in London and Paris. From January 1, 1907, totho time of the panic on March W, the decline in the leading stocks dealt with in Wall Streot was no less than .£200,000,000 in the case of twenty-six loading companies. This shrinkage represented an all-round loss of 23 per cent, of the market value of the stocks mentioned. Tlic greatest sufferers wore Northern Pacific, which depreciated £21,500,000; and Union. Pacific, which lost .£27,200,000. Tho market settled down somewhat from March l't, on to March 22, but there were indications that values would go lower. This is what actually occurred on March 25, when the final upheaval took place. During tho panic, Gail monfiy touched 25 per cent., big blocks of shares wero tumbled on to tho market, and as these wore accompanied by rumours of disagreements between 1 leading bankers-and the railway magnates, and tho story that much of-.the realisation. ..was on-'behalf of hardpressed groups, the strain continued practically unrelieved until it was seen that no largo lots of scrip,»were coming on tho market. The second collapse on March 23-25 was ascribed to forced realisations on tho part of British holders. Through it all, however, J. E. Harriman's ruthless tactics in railway matters was said to have brought about tho crisis. As to tho statement that the present slump s 'due to the rumour that Mr. Hiarriman is reducing his railways holdings, it is very likely that'ho is taking .some step.'i to protect ' himself and to meet the legal proceedings that arc ponding against him; at the same timo, it shows the sensitiveness of the market that (hero should be a slump because of Mr. Harrimaii's action. No doubt American railway securities are. tainted because of the aggressive attitude of the President, for it is obvious thfet no one will want to have anything to do with a security which the Government is likely to have a fight with. Tho fact that Mr. Uarriman is unloading his railway stock is evidonco of a fear of the worst results, and tho market Would interpret it as such. This wouldlead to. a .general: desiro not to be caught in the final crash, and so comes an-other-'slump. In any case, we, must look upon it that capital is very" sonsitivo. just now. l r or over twelve. months panics and slumps havo followed one another, with an occasional boom to relieve tho monotony. Take this year alone. There was a copper'boom on the New York' Exchange, and many wild-cat schemes were foisted upon the public, whilo the scrip of some of the well-known , mines was rushed up to fancy prices. In March there was a panic ; in Wall Street as recorded above, while there was a collapse in the .metal markets in London and Paris. In May, there.was an exciting gamble in the Chicago wheat pits, and the price of the cereal.was raised to a dollar a bushel, much,after what was experienced during the Loitoy boom of. 1837. • In May and (June, the fall ill British Consols attracted widespread attention and comment. In .Tune there was a marked depression on the Berlin Bourse, but towards.the end.of June the outlook improved, and the London Stock •'Ex-change-assumed.. -ft cheerful tone. Early •in August, Wall Street suffered another relapse, and by the cud of that month, the -Secretary of the United States Treasury was compelled to come to the assistance of tho 'National Banks to avert another crisis. In September it was announced that British Railway Securities had depreciated ten millions sterling in a week, because of the trouble with the Amalgamated Railiray Servants. Within the last few days we have heard of tho Vienna Bourse being in a panicky state because of the ilrness of tho Emperor of Austria, and anothor slump in Wall Street. The Conditions prevailing are very dangerous. Capital is very horyous, and financiers are acting with extreme caution. Such a state of affairs must result in a world-wide depression, because of the inevitable restrictions placed upon trade and commerce. It is to be hoped that the world will not witness another crisis such ns followed the collapse of tho Baring banking firm.