New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1884-05-15
EFFECT OF THE FAILURES ON STOCKS.

EFFECT OF THE FAILURES ON SIOChS'
HEAVY DECLINES IN THE MARKEr-rALK OF oLos-
ING THE EXCHANGE
The distrust at the Stock Exchange aroused by
the recent failures of the Marine National Bank and
the brokerage firm of Grant & Ward was increased
by the published statements yesterday about the
operations of John c. Emo, president of the Seconh
National Bank. In addition to the known fact that
one stock. brokerage firm in serious difficulty on
Tuesday on account of its connection with Mr Emo
it was expected that other houses would be affected
more or less directly by the complications Although
it was known that the bank itself would lose noun
ing the developments excited the lvellest appre-
tensions.
Most brokers were at their offices early IN tne
morning scanning their accounts and calling ioans
OF preparing TO protect their own opllsa'iohS. ~
of the general fears the prices of stocks
opened weak aud lower at material decllhes irohl
the closing figures on the preceding day. lt was
not more than ten or fifteen minutes after the OPEN
ing when the announcement was made that the
firm of Nelson Robinson 81 Co. was unable to meet
its contracts The failure had not been expected,
and the announcement was the signal for others' al
though the others were in sense in consequence or
it, The failures of COTE & Randle and U. Nj.
Bogart g. Co. followed in quick succession, and
shortly afterward ii was learned that the Metro
politan National Bank had closed its doors. Inc
Stock Exchange was plunged at once into state
of excitement that has not been equalled since the
panic of 1873 All stocks fell rapidly and brokers'
seemed lager to sell at any price
WILD RUMORs SET AFLOAE
II was presumed at once that the failure OF the
bank was in consequence of that of Nelson Robin
son & Co. because Mr. Robinson is a s0n-in-law OF
George Seney president of the bank, and his only
| partners are two sons of Mr.. Seney. How wide
| spread the entan clements might be could only be
guessed and therefore, the widest rumors were set
| ahoat. The failures of Hatch IL Foote ana oil
| Donnell Lawson & Simpson were announced ana
j. c. Williams stated in reply to Inquiries that ne
should send notice of his suspension to the tx
change later in the day. Within an hour one large
bank and six brokerage houses had failed. Stocks
had declined in instances over 10 per cent,
although as rule the declines were not over and
6 per cent A large number of Transactions under
the rule for the account of the suspended firms was
made The difference between cash and regular
stock was at no time large, and generally each pur-
chase was at decline. 1t was at this time that
there was some discussion about closing
the Stock Exchange. There was no meeting OF the
Governing Committee or of the officers of the Ex-
change. 1t is understood that the suggestion came
first from persons outside of the Exchange al
though few brokers were disposed to accept IT,
Some of the leading members of the Board, VINO re-
membered the experience of 1873 protested against
such action. President Hatch did not consider the
emergency such as to Justify it, aud the Exchange
remained open to the close of business.
THE EXCITEMENT GREATLY ALLAYED.
The absence of further failures, the reassuring
statements made by some of the directors OF the
METROPOLITAN Bank and the prompt contTadictonOt OF
| the rumors about other institutions did much to
allay the intense excitement 1t was stated that
tbe Clearing House Association would meet at 1880,
and the very announcement seemed to give Tenef.
The action of the banks i'll uniting Tor mutual pro-
lection as they had done once before in 1878,
was accepted as assurance that the worst
was over The general announcement was shown
by rally in the prices of stocks and when the fail
ure of Hotchklss Burnham & Co. was announced,
thirty minutes before the close, there was only
| a slight return of the excitement. Even
the extraordinary stringency of money,
which at the close commanded a premium
of PIP and per cent day III
addition to the legal rate of interest, not sui-
cient to check sharp recovery in most OF the ac-
tive stocks While it was feared by some that
there might be a few fresh failures to-day, II was
the general opinion among prominent Dank olncers
and brokers that the action OF the associated banks
was an insurmountabe barrier to a serious panic
This action was considered likely to prevent any
]
ing correspondents in New-York Indeed, the
prompt action of the Clearing House was regarded
as wise measure which would stop any further
disturbance.
LARGE DEALINGS IN STOCKS.
The recorded business in stocks was not larger
than on several days before, but the actual busi-
ness probably exceeded that any previous day in
the history of the Exchange. The Official reports
made the total transactions 621 341 shares, but 1t
was estimated by careful observers that the actual
business did not fall far short of million shares.
The largest decline was made in
Missouri Pacific, which steadily fell after
the first hour from Is to 67l2 from which point 1t
rallied only to 67s4. Union Pacific was the most
active stock and ii declined from 45 4 at the open
ing TO 80. butt the last hourit touched 43 cash"
| and closed at Al regular" Western Union opened
at decline of per cent at 54 and, dropping to 49,
| recovered to 5Oi2 The granger stocks were con-
| spicuously weak st. Paul tumbling from 72'4 to
| g. and Northwestern from 1904 to 100 Both
stocl.s made subsequent rallies OF over 3 per cent.
but lost part OF the recovery III the last few min
utes New-York Central yielded per cent to 1869,
closing at 1912, and Lake shore, after falling
nearly per cent TO oS2, closed at 9Ols Erie iiuc-
tuated within 10 per cent, and at 13Si closed only
| Is lower than 1t did on Tuesday. Northern Pacific
preferred fell per cent to A. closing with final
! loss of 53s per cent, while Oregon and Transconti-
mental, which was more active, suffered final de
| cline of per cent
The failure of the bank caused heavy decline IN
East Tennessee, Virginia and Georgia Railroad
securities The 5s fell from ~ TO 60l, rallying at
the close to 81 and 56 he transactions amounted
to less than 81 80 900, but the decline was made 3
and per cent at time.
THE TROUBLE IN THE BANKS.
THE METROPOLITAN TO RESUME.