Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1882-02-10
TfEE TUMRElE m hOEDs.
How the Decline Not Accounted
For BY the Nashville Papers

-
The Nashville morning papers Q
yesterday comment upon the sensation
al bond runners adoat as follows
World
A considerable breeze was create,
yesterday among spectators, broken
and dealers in securities, upon the re
ceipt o., the intelligence that Tennes
see bonds were rapidly on the decline
When the argument of the 1903 cas-,
began, bonds were quoted in New
York at 78, but they have gradually
declined since until Monday, wheI
they reached 6S. They reacted tina
day, however, and closed at Y. Al
noon yesterday they were quoted al
70!, and few hours later at 66. Pri.
yate kilograms received still later
quoted them at 60, and the last report
was that they had reached 63.
There was much interest manifested
by every one, as to the cause of this
rapid decline, but it seemed that nc
one knew what the cause was. 1t il
said that 100000 of bonds were sold
in New York Monday, and that this
was the cause of the decline.
Several prominent fnanciers and
political leaders were questioned yes
terday about the big tumble, but none
Of thSm knew anything positive. 1t
was thought by some that the heavy
transaction of Monday produced the
impression in New York that the
Supreme Court would decide the case
against the defendants. ThiV, in fact,
was the general impression on the
streets here yesterday, though some
who protested to know declared that
such was not the case. Those who
have always supported the 1908 meas
ure say they have no doubt about the
decision OF the Supreme Court, but
they can sffer no solution of the great
change in the market. Others who
are moderate in their views state that
the decline is probably due to the fact
that the decision is drawing near and
that the result is very uncertsin. This
uncertainty created an uneasiness in
the market which forced the bonds
downward. The arguments for
the compliments before the
Supreme Court on the coupon
feature of the bill are admitted
by all to be overwhelmingly against
the constitutionality OF that feature.
Many who once said the complainants
had no lawsuit. now say that the
arguments were the most conclusive,
direct and powerful they ever heard
anil they have changed the sentiment
very much. These facts have been
made current in New York, and of
course have their effect.
Some believe the decline is the result
of q speculative scheme; that the large
dealers are selling short to produce
the lowest decline possible and then
buy. Several small spectators suffered
severe losses, and in fact some were
completely wrecked by the decline
Those who have enough capital can
afford to lose several hundred thousand
dollars in bearing" the market if
they know whereof they can get re-
turns. But as it is not probable that
any one knows what the decision of
the Supreme Court will be or where.
of the returns will come, this theory
wants confirmation just as we'll as all
others do. The solution of the ques-
ton is left with the public until the
Supreme Court comes to their rescue,
which it will probably do next Satur-
day.
Americana
The principle topic Of conversation
on the streets yesterday was the de-
cline in Tennessee bonds during the
day in New York. On the top Of the
decline in Wall street a rumor was
set ahoat to the effect that the Su-
preme Court would declare the law,
providing for the settlement of the
State debt at 1908, unconstitutional.
Connecting the two together a pam
icky feeling prevailed among those
who had bought at higher figures, and
there seemed to be disposition
among weak holders to let 60 at the
ruling rates. A large number of per-
sons gathered in the banks and bro
kers offices to see each succeeding
dispatch relative to Tennessee bonds.
Last night a large number of persons,
Of a speculative turn, as
sembled at the Maxwell. House
with the hope of picking up points
in the general discussion of the
question. 1t was believed by a good
many that the rumor started was
without foundation. The Judges OF
the Supreme Court and all its officers
are supposed to have been very prop
erly reticent on the subject, and it is
understood the court has not even as
yet come TO any definite conclusion.
1t was further understood last night
that they we're consulting about an
opinion in the case, but nothing could
of course be ascertainsd as to the re-
suit of the conference. No one, out.
side Of the judges themselves, will
know before Saturday what the Su-
preme Court will decide.
Many think that the fall in the
bonds yesterday was bear movement
on the part OF a local pool" in con-
nection with one in New York, to
shake out the small holders and cause
a sharp depression, with view to
taking fresh hold.