National Republican., 1885-10-03
TIE MARKETs.
Downfall OF Two brokerage Houses in
Wall street-Efrect on stooks-wheat
Easy and Firm.

Downfall of Two brokerage Houses in
Wall street-EnEect on stocks-wheat
Easy and Firm.
NEW YonK, oct 2-It would be difficult to
select two brokerage houses on Wall street that
stood higher or whose credit was better on
Monday last than.thoso Of w. K. soutter & Co.
and William Heath e Co., and yet both houses
have suspended payment since wednesday
morning. and, rs the matter is understood on
Wall street, through the failure of single Gus
toner who has been stubbornly and persist
entity short Of the market during the rise of the
past two or three months to respond with the
requisite margins. Perhaps never before in the
history OF Wall street have there becu such i'm
pOrtnnt failures thut were Immediately fol-
lowed By such slight changes In quotation as
have taken place this week. Although prices
morning, the changes rs compared with last
Tuesday evening before there was any gen
eral supcion of trouble anywhere, ar1
uuimpOrtant, number OF stocks bcing
fractonally higher than they, and a few i'm.
materially lower Following failure, such
rs that OF Vim. Heath & Co, which occurred
enormous short interest to be settled, the first
immediate result Is always supposed to bc an
advance III prices growing out of the necessity
on the part OF brokers who had accounts with
Heath 4 Co. TO protect themselyes by inmo.
dinte purchase of the ki involved, the
Differences, Of course, to be settled subse.
opened somewhat irregular aud rather fever,sn,
and took no decided course In either direction
prior TO the announcement of the suspension
(which was made shortly before midday, I'd
yanced only for fractional amounts, and be.
fore the close Of the day all the advances AMI
something more were lost There was mani.
iettly an, apparently unlimited quantity, OF
slock on hand az current quotations. nm when
the purchases had been made which closed
the accounts SO far as the stock exchange was
concerned Of VIM. Heath a Co., there was a
.Nt.n It..l.N
Of activity until late in the afternoon Dur.
ing the last hour quotations settled down 10 n
figure generally little above the lowest of the
day and so remained to the close, the market
leaving of steady 10 firm ut small fractions
above lowest prices, and generally for the
active shares at from u to u below the final
figures Of last evening. Louisville and Nash.
Nille lost ~, Omulln common, ], aud Denver
md Rio Grande, ~, and with these cxccp-
tions not single stock on the active list lost as
much as per cent. and not one made any ad.
vance. IL Is beliCvcdthat some OF the intimate
friends of the suspended firm were cognlziut
OF the impending announcement and before II
became known on the exchange that the firm
had suspended had bought In their stock.
Hence there was quite an active market
throughout the
forenoon, and during the time that the transac.
tions were being made under the rule the &C:
tiyity continued, but no one seemed disposed
TO continue business IN the uncertain aud I'M
settled condition of Affairs after the accounts
for Heath q co: were closed, and there was,
therefore, sudden relapse into extreme dull
ness, as already noted, which continued during
most the remainder of the day II ls gen.
orally understood that the house OF Heath &
Co. was short Of about 10000 shares, but the
transactions under the rule foot up only ~ 600.
The difference between the amount bought In
under the rule and the total amount of which
Heath y Co were short was made up by pur
!chases In the ordinary way, and supposed TO
be upon orders given by Heath Il Co.
The total business OF the day was unusually
large, amounting to $4,000 shares but Lake
Shore with $500 shares, New Yo;k Central
with 23,SOO, and Northwestern, Western Union,
LacRawanna, aud 81. Paul with 1000 to 5l9O)
shares each, contributed 3n7, 900 shares, leaving
| only 10000 shares to be distributed among the
| remainder OF the list.
=, The failure Of Henry n. Smith, which was
| the cause of Heath & Co., removes from the
market one of the most persistent bear opera
tors known to Wall street for several years.
II IS therefore claimed by prominent bull
operators that the result will be to strengthen
the bull party. II TO tho account that was
bought in for Heath Il Co. be added the short
account of other bear operators, II Is probable
that the purchases to-day for the short aG-
or nearly one-half of the days business. OF
course this furnished the bulls with market
for that amount OF stock, thus placing them In
u position TO purchase again at any material
decline that may follow.
Tho railroad situation, thoy claim, is moro
favorable than 1t has been for sometime past
ana they are consequently tonight predicting
that the result of the failures OF the current
week will be decidedly favorable to future
operations
Money on, call is cnsy at TO ~ per cent,
closing at ~. Foreign exchange continues
dull, and quotations unchanged. Actual busl-
ness sI.S354 for 60.days' bills. and SiS5k for
posted rates, sisils for GOdays' bills, and sLs6I
for demand
Government bonds are dull and steady. State
bonds continue quite active and prices steady.
Treasury balances: Coin, sl53 GA, ,7i9; currency,
222lO,2H.
Quotations of Fridays Stock Sales.
The following have been furnished by Bateman
Co., bankers, 1411 street, being the most active
m la atu NarE han