The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1886-12-16
PANIC IN CHEAP STOCKS.
THE FURRY BROUGHT ABOUI
BY DESIGN.
L. Marx & Co. Fail-Chpitalists Call
for Large Leans Up to Twelve
and FifteeR Per Cent.

1
says; The semi-panlcky condition Of
yesterday evening Yves developed this
forenoon into full hedged psnic Ia
some of the cheap stocks, aud the
gleat and rapid decline If these ex-
tended the psnicky feeling to a good
many better properties, though the
decline in these was comparatively
small. There is no question but that
the furry was brought about partly
by design. A few well known CAPT
talists ire known TO have called in
large loans, and this forenoon money
loaned up to II, 10 and IS per cent
per anuum. The sterling exchange
market was el tirely osmora,izad b.
the pressure on the mo ey market,
and regular quotations for sterling
we're impossible. The New Eng and
ele c,ion also had something 10 do With
the panic. The Boston parties VINO
have herBtcfore controlled that prom
erty, finding that they had bean ousied,
Immediately bpgan tothrow their stock
overheard, and the Neg York parties
who now control the roSd knowing II Is
determined to be ahead oithem, though
they undoubtedly mean to buy their
stock back. The Reading CLIQUE also
found it impossible to carry their lead
of that stock, and endeavored to do at
oLcs what they lave been doing grad.
ually for several weeks past, viz: I'm
load. r hjLd these special causes
was also thu general bell that the
speculation ia the cheap Southern
stocks mus. collapse, which it hes.
1t is worthy Of remark that 30 large
and 80 sudden g drop as 10 shown
above in the short space Of two hours
cauted no failures Of Importance, the
only one announced up 10 II o'clock
being that OF l.. Marx & Co."
At l 80 o'clock p m. there were wild
rumors ahoat regarding the banks, but
they can lie traced to no foundation.
A representative of the Associated
Press has just visited several of the
banking institutions, including the
American Exchange, the Fourth
National and the Bank of America,
and has been assured that there is no
trouble in any of the associated banks.
President Ooe, of the American Elk.
change National Bank, was strong in
his denuncistion of the rumor mon-
gers, and said: "There is nothing in
this whole thing but tie loud talk Of
Wall street bears"
Some few small brokers' firms have
been caught on the wrong eide OF the
market, but have made private
settlements, and no further suspau-
Bions are anticipated at this wiring.
The market at its lowest showed de-
cline OF a to 10 points all along the
line. 1t recovered / to 5, aud is
selling of again. Money has advanced
to 30 per cent. A prominent broker
said ct l AS o'clock this afternoon that
the break in prices this morning was
the result OF the very conservative
policy adopted by the banks for the
past week or more in regard to cans.
They have been charging 6(07 per
cent. on good stocks and from to 10
per cent. on specialties; also, that
brokers being unwilling to carry
stocks at these figures called on the
holders for more margins. This
brought out large selling orders, and
as prices fell more st Cks came out,
resulting today in almost panic. The
present break may, therefore, be
credited to tight money, aud not TO
any inherent WEAKNESS in the stock
make itself. The reserve being down
to such low figure as 100000 was
another unfavorable feature of the
situation. Money 40@50 per cent.
The scene On the floor of the Elk.
change at this hour g o'clock pm J
while somewhat animated has no sp.
pesrance OF panic, although the hour
Of 2:l5-when 6li deliveries OF stocks
have to he made--is fast approaching.
Mesps. Kuhn, Loeb d O.. have or.
dered the shipment OF 81 100000 gold
from London, aud the Seligmsp Broth
ers have ordered 5000, 100 francs from
Paris, the exchange market having
come down to the shippng point.
1t is claimed in certain circles here
Ina. the alleged disastrons eff ct which
the interstate commerce bill in its
pretent shape is expected to have on
the railroad interests OF Tho country
has had considerable influence in
creating the present depre7si d.
A 2:l5 o'clCck pm, dispatch says:
The stock market, since y o'clock, / as
shown much less activity, although
the tran7actions would be considered
extremely heavy on any other day.
Phi eJ were much be. ter, aud reaov.
cries, ranging up to 2 per cent, were
made by l o'clock p m but later the
decline was again resumed and the
lowest figures yet attained were
reached. The most conspicuous move
ment was in Manhattan, which was
weak when the remainder Of the lit
was firm, and its decline from noon
figures was 81 per cent The re-
mainder again showed some improve
meut towards 2 O'Clock, and at 2:15
the market is very active and ire.
gulsr, but generally firm.
2:25 p. M.-Several buying orders
appear to have been given in the
Stock Exchange, and there is an inn
preston that the selling movement
has passed its climax. The "shorts"
are beginning to cover and the houses
with European connections are eaid
to be buying. This Wi OF course,
hVip W bLoatiy Jus MARKET, anu IL VIII
probably close frmer TIE delivery
hour has gone by without any fresh
failures, which is regarded as an ex-
cellent indication.
One of the houses reported in
trouble in Wall street today, and
whose suspension was expected this
afternoon, received assistance from
friends, By unloading a lot OF high
priced stock they were enabled to tide
over. 1t was reported that the cauee
OF its embarrassment was the calling
OF loans amounting to $l,000,000,
which it was borrowing. After 3
o'clock the market began TO rally,
and when the set time for delivery Of
stocks-2:l5 O'Clock p. m.-hsd passed,
without any one Of the several houses
known to be in q shsky condition
suspending, the confidence began to
return and many Of the brokers
bought stock for their own account,
believing the decline 10 be at an end.
The heavy bears, too, remembered
that in former panics no money could