The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1879-08-15
FINANCIAL and COMMERCIAL.
A Crash in the S.
Market.
Stock
M O N Ely ARD E r.
All Classes Of Securities
Decline.
WALL STREET.


1t looked for time this morning as IL there was
going to be panic on the Stock Exchange. Lake
Shore which is the peg which the market has
hung for many weeks, broke down. and all its
pendants fell with it. The scene in the Board was
wild one for time. and the market got such ham,
mering that it continued to pulsate nervously for
the rest of the day and closed weak and
feverish. Lake Shore opened u below the last
figures Of yesterday and in less than two minutes
went down like plummet to SAX. Northwest
which closed yesterday at 7ss. broke down to 74sl;
st. Paul and Western Union each declined about two
per cent and the rest of the list in the proper
ton to the recent rise. frmer tone prevailed
abops oaon. and many bought under the impression
+ s ethng in relation to the leasing of the Lake
rs N ight be done at the Saratoga meeting after
A recovery Of a to per cent from the lowest
p,,a.s of the day set in. but most of this
was" lost again before the close. Rumors were
aioat in the tina. than 100000 shares Of
Ike Shore had been recently sold by Mr.. Wander
blt that half of this disposed OF while the
stock above 80. Dispatches from Saratoga
announced that mention of lease of the Lake
Shore road was made at the meeting of directors
Of that company to-day. The only business done
was to make arrangements for obtaining
interest in the Canada Southern line, by issuing
s750O0O of Lake Shore bonds with which to buy its
securities. At the New York Central meeting no
reference whatever made to loan. These va
rious reports rested like an incubus upon the mar
ket and prevented any noticeable recovery. The
general impression seemed to be that the man who
controls the New York Central not only permitted the
street to be duped by not contradcting the long
current reports of lease but took active part in
the movement. The break. however may be ex-
planned without reference to the action OF big
operator. On Monday, throughout the whole
period Of the late movement in stocks. money
was in abundance at pa to 4 per cent. This
gave life to speculation. The reports OF
lease of the Lake Shore being upcontra-
dcted and more definite; the speculative element
II upon that stock and large amounts were
hit. q multitude of outsiders buying small lots
~ slight margins. Suddenly the whole situation
< lged. Money went up to seven per cent. and the
ort of prospective lease was semi-oficially con-
addicted. scare ensued everybody was anxious
get out OF the stock at once and the brokers
iwamped with orders to sell. The decline of yester
day. followed by the weak opening in the
stock this morning. wiped out the margins Of many
holders. and the sale of their stock added to the
element and made the fall still more serious. 1t
was asserted by persons generally well informed
that the drop was a surprise to the clique which has
been buying for a rise and that they had not I'M
loaded. However all this may be it is obvious
in great measure. upon the condition
II the money market for some time to come. The
transfer of loans caused by the immense sales Of
stocks had tendency to make money sitter to-day
md the movement of funds to the West to move the
rops has already begun. The Treasury has done
uothing to the money market, and rumors
hat Secretary Sherman had autographed that
ne coming to its relief are off,
;ially contradcted Notwithstanding these nd
verse circumstances the market is likely to be
easier. Aside from whatever effect the importation
If specie may have the Sub Treasury In the city will
pay to the banks of this city S10000.00O in closing
the four per cent bond transactions. Since Tuesday
morning the banks have taken out Of circulation and
paid into the Sub Treasury for bonds 81 900 900.
The currency balance held by that institution
is now about $47 100000. and the deposit to
Clearing House certificates being deducted from this
leaves balance of about s260Oo.O0O in currency
available for use. With this there would
seem to be serious danger.
More than thousand shares OF Lake 1shore were
sold under the rule for Broadway Arm this after.
noon. but they deny that they are embarrassed and
assert that the affair the result of q mistake.
The extreme fluctuations of the day in leading
shares are shown in the following table Of prices
IL.xI..