Omaha daily bee., 1886-12-16
WALL STREET GOES WILD.
Ten Per Cent of the Water Squeezed Out Of
Inflated Stock,
ALMOST ANOTHER BLACK FRIDAY
The sales Of Shares the Largest Ever
Recorded In the History OF
the Stock ENchanGe-One
Failure Announced.
Pandemonium on the stock Exchange


death of Garfield was witnessed to-day. Con-
iidencc had been completely destroyed by the
sharp decline of the past three days, and
everybody was predicting u further drop, and
it came with a vengeance. The stock eN-
change presented a scene of the widest eX-
element during the first hour but just before
noon, when the announcement was made
that one small house had failed and that
others were in trouble. the excitement was
intensified until the exchange was u pande-
monium of brokers rushing and bowling and
climbing over one another to sell stocks.
Reading broke 10 per cent from 40 to 80, and
strong dividend stocks like Lackawanna
melted before the avalanche of selling or
ders. At one time it was next to impossible
to sell anything at all. Lackaw anna broke
G per cent, Richmond Il West Point S per
cent, New England S per cent, Omaha 6 per
cent and other stocks in proportion. North
western, st. Paul. and Jersey Central were
about the strongest things on the list,
although there was drop in these
of to per cent, followed by speedy rally.
Money was IL per cent and the prospect was
that higher rates would be the rule until the
first of the wear. The best explanation
offered for the break was that high rates for
money had compelled the longs to liquidate,
and that, as the market continued to decline
the score increased on stop orders and the
throwing of stock by weak holders, together
with the terrihc onslaughts by the bears,
carried the market down. At noon the mar
ket had rallied TO 3 per cent and was steady
Sales to noon were G00,0O0 shares. The
decentralization was increased after l. o'clock
by the announcement that 80 per cent was
Dd for money and that none was to be had
even at that figure The failure of COhn Il
Co. and one or two smaller concerns still
further complicated affairs. 1t was
announced, however that the Selgmans had
engaged S5OO,OO0 gold for shipment from
Paris to this country. During the closing
hour strong parties stepped in to prevent
further decline, shorts began buying at the
same time and in few minutes the whole
list was up 2 to per cent Reading rallied
from so to 81 and the drift OF the whole
list was upward. The close was excited at
an advance Of 2 to per cent from the lowest
point of the day. The total sales were
nearly 1,O0O,OOO shares. the largest record
| ever made on the stock exchange. T.. w.
| Yanderhoff & Co. wired their Chicago house
this afternoon as follows:
Don't be afraid to buy stocks. You can
| raise any amount of money, and this is an
| opportunity you will not see again in two
! years, may be not in ten. 1T is absurd to
| suppose that the bull campaign is at an end,
| and that we are to have another long period
v.
| see tine biggest boom in 1857 we have ever
known. | believe money will land at per
cent per annum this week. Gold is coming
| all the time. When Mr.. Gould gets ready he
| will have all the stocks. Don't get left.
This clears the financial sky for year to
come.'
Ogden wired Baldwin. Wren & Farnum
| to-day as follows:
! "'lhe bears have used every effort to-day
| and some stocks have sold lower than they
will again.in year; We withdraw from the
| bear side herewith" ;"
| New YORK, Dec. l5.-The scene at the
| opening of the stock exchange was one of
the. widest ever Witnessed there. Reading,
which closed last night at .i2I4 per cent,
West Point closed last night at 10 per cent,
opened this morning, at 3S and, within
Taey @e n'es Closed sS' last at nsht ii ocs@s at s5
| opened at "a, and declined to 2S1S. Western
Union closed last night at MS, opened at 20.
and Of sold ac,oc at 6S od Ihg fLo Stoe stoeI
| of the previous hour and those stocks which
had been strongest We're in turn attacked ana
the selling was in the nature of panic.
The declines ranged up to 10 per cent in the
active lost, the most conspicuous being New
| England 919, Reading 81, Omaha g. Lacka-
wanna 45G, New York Central 4, Canada
Southern "a, and others smaller amounts.
There was "a a slight rally towards noon, but
at that time the market was active and very
weak Sales during the first hour were 3I1,-
600 shares and to noon 100000.
l.. Marx Il Co.'s failure was announced on
| the stock exchange. They were long of Ter
minal and kindred stocks
The market is stouching the lowest points
seen for many months. Some stocks have
dropped to 3 per cent in the last few mo-
ments All brokers have orders TO sell
| without limit. The heaviest losses by the
bulls have been in Reading, New England,
Lackawanna Hooking Valley and Richmond
| Terminal. Gould " Cummack's brokers have
! been bnying stocks at the decline, and the
market begins to show somewhat better
| tone.
| p. m.-The market is still feverish, but
| little better than the lowest prices. The gen
| eral feeling seems to be that the worst is
over, and that the panic which seemed i'm
minent at noon will be ttded over. Sales
| ever known in the history of the exchange
| /: 80 p m.-Ihere are wild rumOrs floating
around regarding the banks, but
GGsy can be traced to Of fIe foan
| ated press has Just visited several banking
institutions, Including the American EX-
change, the Fourth National and the Bank
of America. and has been assured there is no
trouble in the associated banks. President
Coe, OF the American National bank, was
strong in his denunciations Of the rumOr and
s"d wbdie fhsge thnE is but H0ioI1s onds talk tx ef of
the Wall street bears" Some few N small
| broker firms have been caught on the wrong
side of the market, but have made private
| StltItDltnlS ana no IlltlltI suspensions are
| anticipated at this writing. The market at
| its lowest showed decline of four to fifteen
points all along the line II recovered one
| five and is selling off again. Money has ad-
yanced to 30 per cent.
| :45 p. ma prominent broker says that
| the break in prices this morning is the result
of the very conservative policy adopted by
the banks the past week or more in regard to
! loans. They have been charging TO per
cent on good stocks, and from 10 IL per
cent ON speeiaties; also, that the
| brokers being unwilling TO carry
! stocks at these figures, called on the
holders for more mragins. This brought
out large selling orders; as the prices fell
more stock came out, resulting to-day in al
| most a panic. The present break may
therefore, be credited 10 tight money, and
not TO any Inherent weakness in the stock
market itself. The reserve being down to
such low figure as "a OC0 900, was another
| uniaYOrable feature of the situation. Money
is now 40 TO 80 per cent
2p.m.-Ihe scene on the floor of the exchange
at this hour, while somewhat animated has no
appearance of a panic, KOhn, Loeb a. Co.
have ordered the shipment of Si,O0O,0OO of
gold from London and tine Seligmans have
ordered 100000 francs from Paris, The eX-
change market has come down 10 a shipping
point 1t is claimed in certain circles here
that the alleged disastrous effect of the inter
i state commerce bill in its present shape is
reported 10 have on the railroad interests of
the country has had considerable influence