Los Angeles daily herald., 1886-12-08
THE COAST.
Ups and Downs OF the
Stock Market.
THE DAYS vICISSITUDES.
Rich and Poor in Il Minute-Old
Times Returned on Pine
Street.

favorite mining stocks took a fearful
downward plunge this morning. Con
solidated Virginia, which sold yesterday
at $65, opened this morning at S42. So
and quickly after went to $50. Ophil
followed suit. Sales in this stock were
yesterday made at $40, but it opened to-
day at S25, closing at $27 80. Best &
Belcher opened at $23, "a loss of So, and
without any attempt at recovery closed
at the first board at $40 25. Savage did
no better. 1t opened at SIS, loss Of
Sc, and finally closed at $l5.75. The
break in Sierra Nevada was not so bad,
being strongly held at $3.50, closing al
$l4.25. Gould & Curry sold at $3.50
yesterday, but opened this morning at
$l3, closing at $l2. The break has ere.
ated widespread consternation. The
only assumption is that holders have
corralled all the shorts and are now let.
ting the stock go. If this should prove
correct, heavy further declines may be
expected. No failures are reported this
morning,
The greatly advanced prices bid for
leading Comstock shares on the street
yesterday, Notwithstanding the closing
of the boards, sent thousands of dealers
home last night in happy frame of
mind, and there was nothing to prevent
dreams of suddenly acquired affluence.
When they came down town this morn
;,,c, tI,s ,ybolo ,,oe,t,op Of tba mo II, a ;
was suddenly reversed. Instead of
booming prices there Was very bad
break which cut Consolidated California
s4uarely in two, as compared with yes
terday's street quotations, and played
havoc with the market value of other
stocks. The sales were heavy and forced
and prices to drop, when it was known
this morning that the break had occur.
red in the market. Brokers were more
alarmed than yesterday when stocks
reached their maximum in value. They
knew there would be more sellers than
buyers and they could not predict what
the consequences would be. But as
hour after hour passed away and no
evils occurred from fall in prices, they
became more confident. They attrib.
uted the decline to lack of confidence
in the brokers by the public, who were
anxious to deliver their stocks while
there was no demand. When it was
fully relied by thousands of wondering
speculators that the market which they
had fondly dreamed would never tumble
had actually had such bad
break, there was general casting
about for causes. Rumors and theories
to account for the disaster flow thick
and fast. One story which found great
favor was that the stocks of Greenebaum
& Strauss were being thrown upon the
market to obtain cash to make settle
ment with their creditors. But at the
office of that firm a prompt denial of
that rumor was made, it being stated
that all of the creditors had not yet
signed the agreement of settlement. The
Evening Postssays: As near as could be
ascertained among people of good infor-
nation and cool judgment on stock mat
tiers, the break in prices was q perfectly
natural occurrence. 1t was due to the
fact that the tremendous short interests.
the settling of which had been so
instrumental in raising prices for weeks
paSt. udu uuoiJ pOoh az uJuotou' luc
eliminating of this great lif ing
power from the market, therefore, threw
the whole situation upon the longs"
and here is where yesterdays closing of
the stock board did much to cause the
break in the market. Thousands of
orders to purchase stock had been given
to brokers yesterday by outside buyers,
which, of course, they could not execute.
Nine.tenths of these orders were de-
clared "of7' last night, according to
custom. 1t seems as If outside buyers
reconciled the whole proposition during
the night, and gave comparatively few
orders to buy to-day. Hence, with nm
almost complete removal of the short in.
terest through adjustment, and
the lessened purchasing medium of
slongs," it did not require much of
shower of stocks to send down prices
this morning. The suspended stock
brokers are being watched closely. The
creditors have formed themselves into a
vigilance committee, and those who
have failed are followed wherever they
90. One of the unfortunate brokers
said this morning that when he was 60
ing home last evening three of his cred
itors followed him to his home without
speaking word. Those who have lost
heavily state that they are not going to
allow any of the brokers to depart as
Gardiner did, and are guarding them
closely.
A RALLY IN STOCKS.
SAN Francisco, Observation-Disclosures
the San Francisco Board met at ii 80 it
Immediately adjourned to 2:30 P. M.
Toward noon, however, there was a
sha p recovery in stocks, as indicated by
outside transactions. Consolidated Vir-
ginia advanced as high as $40. Other
Shares also followed with bids for them
as follows: Ophir, $26; Mexican, $l2;
Gould & Curry, $l2; Chollar & Potosi,
$l4.
Best $23, Savage SIS. Greenbaum &
Strauss, the brokers who failed last
week, have drawn up an agreement of
settlement on basis of SO per cent. for
creditors to sign. The paper requires
ITO signatures before any action can be
taken. Sixty creditors had signed up
to noon, and it is the opinion that 1t
will be acceptable to all of them.
THE MARKET RECEIVERS.
There was sharp recovery in prices
at the afternoon session. Consolidated
Virginia, under moderate sales, went to
$53, and finally closed at S52; Best &
Belcher was also better at $23; Chollar
improved to IS rs; Hale & Norcross
S ood firm at 50. so, but, under heavy
sales, weakened to SO. Ophir and Gould
& Curry were the exceptions, the former
closing at $22 and the latter at $40. The
closing prices Of the others were: Crown
Point, $40; Mexican, $l325; Potosi,
Sl5.25; Savage, $2l; Sierra Nevada, SIG;
Union Con-, SO; Utah, $l7; Yellow
Jacket, 80 rs.
MINING STOCKS IN NEW YORK.
New YORK, December Very little
importance was attached, in the Mining
Exchange. this morning, to the failures
in San Francisco, but there was inste I'd
an unusual rush to buy securities both of