Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1884-05-15
The Panic on the Stock ENcbnnge-pIle
nOInenaI DeeIime i'm values.


New York, May l4-Complications aris-
ing from the alleged stock speculations OF
officials of one of the national banks
caused panic in the stock market to-day.
Yesterday it was developed that A. Dvett
& Co. s checks had been refused certihca-
ton by the Continental Bank. The firm,
it was said, was affected by the inability
Of the bank official in question to live up
TO his contracts. At the Continental Bank
it Was stated before the opening of bust
ness to day that A. Dyett x Co.'s contracts
would be taken care of by VIM. Heath <
Co. This was subsequently corroborated
by an official notification to the Stock EX-
change that VIM. Heath l. Co. would set
tie with the members of the Exchange for
all stocks bought or sold, borrowed or
loaned previous to this date. After the
opening Of the board the suspension of
Nelson, Robinson & Co., Gaff K Randall,
o. NJ. Bogart & Co., J. G. Williams and
Hatch & Foote were read from the rostrum
of the Exchange, ,and under sharp pressure
prices broke to 2 per cent, the decline
being accelerated by liquidations and by
sales of thousands of shares under the
rule for the accounts of the suspended
firms. The decline was subsequently
checked by the action of Secretary Folger
in ordering the prepayment OF the l27th
call tor $40 100000 bonds. The Secretary
also expressed himself as willing to do
everything in his power to prevent strin-
gency in the money market, and If neces-
sarv he would issue call for $4,000, 900
additional. Bank Examiner Serbia, who
had been requested to investigate the
affairs of the Second National Bank, re-
ported that institution solvent. The effect
on the market vas favorable, and a rally
OF to 1 per cent. took place. Soon after
ward a rumor circulated that the Metro
politan Bank was in trouble. This was de
MED for the time, but after IL o'clock the
bank stopped payment and closed its doors.
This brought in renewed offerings, and
there was fresh break. Compared with
the highest prices of the morning there
was a decline in Missouri Pacific of 104, to
673; Central Pacific Ct. to A; Quincy At,
to ll2; Northwestern ST, to 81; North
western preferred 8, to l25; ST. Paul ST, to
IS; Rock Island 81, to 1094; Lackawanna
At, to l08; Louisville and Nashville ST, to
324; New Jersey Central t, to -; New
York Central a, to 1863; Northern Pacific
and preferred u, to A; Pacific Mail
u, to 30; Omaha preferred 81, to 81
Union Pacific 6s, to SO, and Western
Union 4, to 49. These phenomenally low
figures attracted purchasers, and there
were fitful rallies until nearly , O'Clock
p M, when the market developed COM
parative strength on the belief that the
banks at their meeting would combine for
mutual protection. This was later found
to be the case, and Central Pacific rallied
4, to So; Quincy 4, to lie; Northwestern
5, to 104: st. Paul 4, to 50; Rock Island
Al, to ia; Lackawanna 2, to no; Louis
vile and Nashville ,, to As; Lake Shore
1t, to 81; Missouri Pacific Al, to 20; New
York Central 4, to l0S3; Northern Pacific
preferred 4, to Al; Oregon Transcontinen-
tai 81, to 23l: Pacific Mail p, to 374
Omaha preferred 81, to $50; Texas Pacific
/ l. to III, and Western Union 4 J, to 544
Near the close it became very active, ac-
commodations being refused in many
cases. The rate was suddenly advanced
to the extraordinary figure of per cent
per diem. The failure of Hotchkiss &
Burnham was also announced during the
afternoon. This unsettled affairs once
more, and some stocks ran off e 4
l to 1t per cent. The market closed
/ irregular, with some stocks quite
| firm. The action of the Clearinghouse
associated banks resolving to issue Clear.
z inghouse certificates on 20 per cent. oi
bills receivable on securities held by the
I banks, the same to be received and paid
! in settlement of balances between banks
/ at the Clearinghouse, had a very reassur-
/ ing effect, and later in the afternoon led
1 to a more hopefnl feeling, particularly as
| this plan was tried with marked success
/ in checking panic. This will enable the
banks to lend more freely to the business
community and brokers, and in connec.
ton with the action of Secretary Folgel
will result in restoring ease to the money
market. 1t is stated on good authority
that further progress was made in the
direction OF the settlement of elevated
railroad differences. Considerable i'm.
portance is attached TO this matter, as il
is generally understood that the settle
ment will have favorable influence on
Stock Exchange affairs. Compared with
last nights closing prices are IL per cent.
lower for Michigan Central, 10t for Mis-
sour Pacific, for Northwestern pre-
ferred, * for st. Paul, 81 for Pacific Mail,
81 for Omaha preferred, IL for st. Paul
preferred, Al for Delaware and Hudson,
80 for Omaha and Jersey Central, q for
Oregon Transcontinental, % for Rock
Island, p for New York Central, %
ia for Central Pacific and Quincy,
IL for Northern Pacific. Kansas and
Texas was ! higher, at II. Among the
active shares American Cable fell off 1t,
to 81; Chesapeake and Ohio seconds pre-
ferred to Is; East Tennessee Al, to 3; In
dianapolis and Bloomington l, TO 3; Long
Island st, to 63; Manhattan Elevated 9, to
as; Manhattan Elevated first preferred 2,
to IS; Memphis and Charleston 4, to 30;
Metropolitan Elevated IL, to 9SI; New
York, Chicago and st. Louis preferred Al,
to 81; Nashville and Chattanooga 6, to AZ
Norfolk and Western preferred a, to 80;
Ontario and Western !, to 74i; Oregon
Navigation 81, to III Fort Wayne q, to
~ q. \ ~
mond and panville 3, to 45: st Louis and
San Francisco first preferred q, to "A, and
American Express Company AZ, to 90.
Pullman Palace broke per cent, to 100,
and rallied to IOi; Rochester and Pitts
burg fell off TO 5, and returned to 6; Man.
itoba sold down from s5a to s3@S44; Illi-