Business: Stock Blister

After a few warning twinges, the glossy blister of high prices in the New York stock market burst explosively at the prick of the rail merger ruling at Washington (see p. 28). Widespread pain was experienced by the speculating body public, as leading rail, motor, industrial and chain-store stocks oozed out 10, 20, 30, even 50, even 80 points, even 100 points.* The nerves of finance carried the anguish to distant cities.

For two days it continued—days worse than Rich Men's Panic (1901) and the dark April and May of 1920. Wall Street...

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