Jasper County Democrat, Volume 10, Number 40, Rensselaer, Jasper County, 4 January 1908 — ISSUES OF SECURITIES [ARTICLE]

ISSUES OF SECURITIES

What the Figures Are for the World and the United States. The source of the pressure upon the money market is indicated by the large Issues of securities which took place during several years prior to the crisis. The statistics compiled by a leading financial journal in Brussels showed that the total issues throughout the world averaged for the five years end ed with 1906 about $3,400,000,000 annually. In the United States Issues of stocks for the first eleven months of 1907 were $757,359,500, and of bonds aud notes $1,073,990,000, making up a total of $1,ai1,349.500, °The extent to whieh capital re sources had been strained was not revealed in a striking manner to the general public until “the silent paqjc” of March 14, now almost overshadowed by later events, but at the time one of the most serious and remarkable breaks which the market had ever suffered. The loss of 19 points in Amalgamated Copper in a single day, 21 points in American Smelting, 22 In Reading and 25 in Union Pacific, added to considerable previous declines at a slower rate, wiped out margins, compelled the calling of loans and wrecked the fortunes of many speculators. The market recovered only slowly during the spring and early summer to suffer new reactions in August: but it was not until mid-October that the storm broke in all its force with the collapse of the corner in United Copper. the appeal of the Morse-Heinze banks to the clearing house for help and the refusal to extend such help un til the old control was eliminated. Events moved fast on the heels of these revelations. The Knickerbocker Trust company was closed Oct. 22 aft er paying out about $8,000,000 in cash, and runs began upon the Trust Company of America, which called for the disbursement of $34,000,000, and upon the Lincoln Trust company, which suffered a nearly proportionate loss of deposits. The suspension of cash payments by practically all the banks and the decision on Saturday, Oct. 26, to issue clearing house certi flea tea on the following Monday, marked the culmin atlng stages of the crisis. Thus the old year ends with prices of commodities and securities much lower than a year algo, and with liquidation largely advanced in the hanking field, if not in the field of commodities. The great stock of currency absorbed during the period of panic Is returning to the banks. The financial structure of the country has stood the strain with only a limited number of serious disasters, and will enter upon the new year under much stronger and aafer conditions than It began the old year.