Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1886-12-16
BEARS AND BULLS.
A Panic in the New York stock Market
-O"e OF the Widest Scen,s Ever Wit.
messed There-tailureo OF Prominent
Firm Announced.
NEW YoRK. Dec. I5

brokers, surgirg from one side to another,
all seemingly bent on selling stocks. Prices
dropped with such rspdity as TO demoralize
brokers who had buying orders, and little
heed was paid TO fractions in making sales
The greatest crowd was in Reading. which
closed last night at 424 and opened at p uer
cent. lover ana was sold down in q few min
utes TO 31S
Richmond and West Point closed last
night at 40 and opened this m irning at SS
and within few minutes was selling st 32
Ho king Valley. which closed last night at
35s opened at "a and declined to 2S4. West
ern Union closed last night at 7ls. opened at
10 and closed at 6S3. London buying orders
were cabled over for heavy block, of stock
aDd helped to sustain Granger and Trunk
line securities.
l.. Marx & Co.'S failure has just been an
nounced in the New York Stock Exchang..
They were long of Treminsl, Reading ami
kindred stocks.
The stock market is touching down the
lowest points seen for months and some
stocks have dropped to 3 per cent in the
last few minutes. All brokers have orders
to cell without limit. The heaviest losses
made BY bulls have been in Reading, New
England, Lsckawsna, Hooking and Rich
mond Terminal. The Stock Exchange mem
member of the board since 1869 and is one of
the most prominent men Oh the street.
Money on call very tight at IL per cent.
Prime mercantile paper as; exchange
quiet but unsettled; governments dull and
heavy; railroad bonds quiet and generally
weak Stocks after III renewed the break of
the previous hour and those stocks which had
been stronger were in turn attacked and the
selling was of the nature of a panic, declines
ranging up close TO 10 per cent. in the active
list. the more conspicuouslv being New En-
gland 81, Leading ST, Omaha 5, Lackawana
40. N. Y. Central 4, Canada Southern 81 and
others smaller amounts. There was a slight
rally toward noon. but at times the market
was active and very weak again.
1t is understood the movement is result of
big combination against the bulls which
engineered large advance throughout the
list; and trust companies controlled by
friends OF the bear leaders, are said to have
started the break by calling in loans on Read
ing.
NEW YORK, Dec. 10.
At Las P. NJ, there were wild rumors
afoat on Wall street regarding banks, but
prnminent banking institutions Incluling the
American Exchange. the Fourth Nsto nal
and the Bank of America, state that there is
no trouble in any of the associated banks.
Russell Sage says the drop is occasoned by
unwarranted prices at which worthless stocks
have been selling. Sage regards the decline
as only begun.
Henry Clews says that before there can be
a return of the bull market, money must give
way from the present high rates of loaning
or else stock will recede still further. Some
| few small brokers' firms have been caught
on the wrong side of the market, but have
| made private settlements and no further sus
pensions are anticipated at this wriIing. The
market, at its lowest. showed decline OF 4
to 10 points all along the line. 1t recovered
to to and is selling off again. Money has
advanced to so per cent
2P. MA prominent broker says the
break in prices this morning Is the result of
the very conservative policy adopted by the
banks for the past week or more in regard to
loans. They have been charging and 7 per
cent on good stocks and from 8 to 10 per cent
on speculatves, so that brokers being unwil-
ling to carry stocks at these figures called on
holders for more margins. This brought out
| large selling orders. The reserve being
down to such low figure as four millions
was another unfavorsble feature of the situa-
ton.
| 230 p. M.-Orders have been cabled for
gold shipments from Europe. The exchange
market has come down to the shipping point.
1t is claimed in certain circles here that the
declines are due to the alleged disastrous
effect which the interstate commerce bill in
its present shape is expected to have on rail
road interests.
| There is an impression that the selling
movement has passed its climax. Shorts are
beginning to recover and houses with Euro
pean connections are said to oe buying This
will, of course, help to steady the market and
/ IL will nrnhzhly plnap al;
hour has gone by without any fresh failure.
| 250 2. M.-The situation is gradually as
sumng its normal condition and a more con-
| 6dent feeling is apparent in dealings. Prices
are fractionally better and money easier, the
ruling rate being % per cent.
3 p. M.-Money is now loaning at six per
cent.
The business OF the Stock Exchange for
one day has never reached and barely ap-
preached today's record of | ,0s8, ,434 shares.
The panicky feeling developed in some Of
the low priced shares. In the past two DAYS
it has spread to the more substantial stocks
and the pressure to sell was Unprecedented in
the broad room. The bears began the at
tack early, bat orders to sell for both sides of
account were over~ helming, the only desire
| seeming to be to get out The attendance at
the board was greater than any before and
|
excitement was intense, the feeling bordering
closely upon panic. The foreign buying
added to check the early rush unit the end
of the first hour, but the pressure was again
and the stock which held up at first slump
then gave way with a rush. Toward the end
of the session, both the bulls and bears be-
came alarmed at the magnitude of the de-
| cline and buying, the orders given out result
| ing in marked recovery over the entire list
| This induced free covering of shorts which
helped the final recent.
| Only one failure ANNOUNCED on the
board although rumors of others were thick
at one time. The market was feverIsh and
irregular however and another slump soon
| followed, New England and Reading leading
the decline with Omaha, Lackswana and n.
Y. Central closely following. The extreme
activity largely decreased after II o'clock,
accompanied by slight recovery in some
stocks. The downward movement however
was again resumed, Manhattan leading. In
the last hour q general rally took place and
material advances ever lower figures record
ed. The market closed active but firm at
recovery.