Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1879-11-24
WALL STREET ILLUSIONS.

WALL STREET ILLUSIONS.
The Gonld-vanderbilt Gag Which Knocked
the Market on Friday-What Prominent
Bankers Say Of the FURRY.
New York Times, Nov, 22.l
In the brokers' Offices there was deal of
talk about reported alliance between Van
derbilt and Jay Gould, which no one in the
street believed, and which MIR. Vanderbilt
explicitly denied during the day. It was
told by one thus: Jay Gould and Russell
Sage have been watching for AN upward
tendency Tor weeks and patiently waiting an
opportunity to reap all the fruits of the
hardwo1king brokers at one sweep. When
the time had come and they had by judioious
operations turned tho tide, they conceived
an idea which they proceeded to carry out.
The report was judiciously set aaoat, it is
said, by Cyrus w. Field, that Field, Sage
Gould and one or two others in interest and
on behalf of the Wabash system of rail
ways, had proposed to Vanderbilt that he
should sell them block of Central at $12O
per share. The sagacious Mr.. Field was
said to have invited some promi-
nent banking firms of this city to
enter a syndicate, as it was termed,
and they responded favorably. A nagnifi-
cent scheme was talked about, comprehend
ing the entire harmonizing of the Gould
Vanderbilt Central Wabash interests, the
awakening of interest in Central stock in the
London market, the relief of Vanderbilt,
who was said to be in i'll health from tho
pressure of too trying business cares, and
who was believed to be anxious to make way
with his stock in this great scheme, even at
price below that at which the stock bad
been quoted on the market for weeks. The
effect of the story said to have been told by
Mr.. Field was to nurse the report about the
on roads not in harmony with the Gould
plans. By working skillfully, the men who
| were most anxious for q breach, the bears,
who have been watching the market with
dlsapproval stamped in every feature, sue
oeeded to-day in
| FORCING BRIEF PANIC.
Stocks dropped, and the country holders
who had heard the reports notified their
brokers to sell ont for their account. Snd-
den large sales of Erie were made at weak
ening prices, beginning at 1929, and going
down to 3211s. This gave Gould & CO. 9
chance to buy Erie, which they want for
their Wabash connection. Later, when the
scheme of the Gould and Sage people came
to be doubted, and it was found, on inquiry
of prominent bankers, that the reported
syndicate was known only to them through
the newspapers, there was sharp recovery,
although an abundance of running about,
and some desire to sell in order to escape any
further possible decline.
| ''The whole story is told in this little
sketch of the sc-called Could Vanderbilt
combination. There WAS no combination,
no syndicate, no proposition to buy Central
at 12O; the story was made out of whole
cloth. It served its purpose, however, and
now Mr.. Field says it has fallen through.
This account was corroborated by Wander
bits explicit denial of the reported negotia-
tions. The denial by Mr.. Vanderbilt was
not made soon enough to save thousands OF
spectators from loss. In brokers' Offices on
Broad street many instances were heard OF
mon who had lost 100000 to $4,000
which they had sent down into the street to
have in use when stocks were booming. II
was the opinion of most reputable bankers
spoken with that the excitement of which SO
much had been heard was temporary and
very superficial, and would wear itself out
without seriously affecting legitimate bust
ness enterprises.
| BANKERS INTERVIEWED.
During the afternoon reporter called or
the members of several leading banking ano
brokerage firms of Broad street and Broad
way. President Thompson of the Chase
National Bank, said: ''The decline is the
perfectly natural and consistent result oil
such rapid advance as was had during the
last two or three months. While it will les
sen tho profits of those who went into the
boom early, it will only be injurious to en-.
thusiastic spectators who recently entered
into the buying of stocks. I cannot con.
ceive there is any danger of the bottom fall
ling out of stocks in the aggregate, though
there are several stocks considered dead s
year ago, and resurrected during the past
four months for purely speculative purposes
Such must go back to the tomb. The de-
cline may continue to an extent of from five
to eight points, but have no fear of it run,
ming into disastrous panic, as some seem
to think, for the reason that
MONEY is NOT SCARCE
when good parties wish to borrow on good
security. The situation now isn't to be com.
pared with the beginning of former panics
In former panics there was foundation fol-
widespread disaster. Now the danger is
confined to Wall street and the few specula
tors who have gone into the Wall street
BOOM"
Mr.. Francis, of Trask g. Francis, said: 81
think if this decline continues much longer
it will bring in new investors in the marke
for all sound stock, and they will cut ava,
entirely from any sympathy with wildcat
The discrimination made by conservative
houses in the latter class of securities, hal
proved that conservatism pays in the long
run. The decline is no more than coult
have been expected, and is due to the genera
alarm felt by outside spectators Throughout
the country, and also to compulsory sale
from exhausted margins. There will be
A REACTION,
and that we will have healthier state O
things on the stock market is almost certain
don't think there will be any great failure
because the street and country arc richer to-
day than for many years..
MIR. Frank Work said the decline was du
solely to extravaganza dealing in fancy stocks
and he had no fears OF panic that woult
prove disastrous. The present troubles
would tend to weed out bad stocks, and max
firmer good securities.
Messrs. Brayton, Ives and Morgan, of tn,
firm of Drexel e. Morgan; Jesse Seigman
Halgarton, and other bankers, took hope
full view of the situation, and said the presen
panic was purely local, and would cause NJ
great harm.
Judge Coo in BrO,C,a COunty-Diptkeria-
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