The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1890-11-19
CRASH In \
PANIC AMONG
OF WILLARD
Decker, Howell
-Rapid DECLINE
The Clearing
cue of the ~
est ExcitemeI
ENew
Not since
Friday, tweI
there been $
astrous sacrihclU
tion as to-day
There was panic.
TO pieces like the scatterif
baby's upset LIGHTHOUSE.
CRASH In Y
PANIC AM ONCy
OF WILLARD

Il
TO pieces like the scatterif
baby's upset LIGHTHOUSE.
man was generally displaying
cry In demanding margins from some
speculating unfortunate, or In Notifying
some other unfortunate that, lack ng
margins. he must submit TO being sofa
out. Courage was at discount, conn
dence was nowhere.
While real failures were taking pace
on the Stock Exchange lat OF hctitlOus
ones were being proclaimed throughout
Wall street by rumOrmongers, VINO
quoted the names of conspicuous banks
as being unable To maintain their creult.
The current sensationalism, so FAR as the
banks were concerned, had much more
invention than fact in 1t. Yet there was
undeniabe apprehension in banking CIT
cles. Bankers would not admit TINS
freely, but early in the day there were
conferences among representatives OF
clearing house banks, and the banks OF
the New York Clearing House Assocla-
ton determined TO provide against every
possible misfortune and exigcncy oy
pledging their associated credit IN be-
half of every bank in the association.
The associated banks of New York
have available assets of sos, OCO, OOO-
Against this it was voted TO issue clear
ing-hOuse certificates in such volume az
the situation might suggest or require.
AS a measure OF relief the bankers Whc
resolved upon il are confident that IL Will
at once be effectual.
There is almost universal agreement
among leading New York bankers that
the money-markets recent range and
tightness came through artificial infu-
ences. Funds have been locked up,
taken out of ordinary business channels,
kept out of reach-all in order TO carry
forward the bear campaign or depres-
sion, apprehension, and quotation smash
ing. The provisions of clearinghouse
ertificates-unlimited, il need be, up 10
S95, 900, 000-will, OF course, put 10 rout
all these manipulative schemes. Said
member of the clearing committee
largely instrumental in bringing about
the official action of yesterday: This
ends the money market trouble. Loan
rates will be normal now. The pinch is
over"
When the Exchange opened this morn
ing there was a larger attendance of
brokers than had been known for years.
Every stock on the list had crowd of
brokers trying To trade in IL, and when
the market opened the scene was one OF
confusion and excitement. The cables
reporting an advance of 2 TO per cent.
in London were received before the open
ing and caused the brokers to take the
bull side, and disposition TO buy was
shown all around.
Rumors of trouble among banking in
situations were current all day, but nc
one paid much heed TO them, thinking
that they were the usual emanations of
bear minds. After the close, however,
I. 81. 10. L.. .-Is til
were members of the New York Clearing
House Association had difficulty in set
Ting the claims of the other banks
against them. There was balance
against the Bank of North America of
81, 400, 600, which il was unable 10 settle.
The other banks were the North River
and the Mechanics and Traders. How
the heavy balance was created against
the Bank of North America was puZ,
Zle. During the day the Mechanics and
Traders Bank made its settlement with
the clearing house all right, and the.
other two banks received assistance from
the other banks in the association and
pulled through all right. At the Bank
of North America IL was said that the
trouble was directly due TO the account
of Decker, Howell & Co., and that now
that the account of that firm was closed,
the bank was in stronger position than
ever.
The most important factor I'm the de-
velopments was the scarcity of money.
Right up To the close it was in urgent
demand, and y per cent and legal in
terest was charged on loans, equal to 1se
per cent per annum. This fact and the
troubles Of the banks caused a special
meeting of the Clearing House Associ-
alton TO be called, and after long ses-
sion it was decided to appoint commit
tee of Presidents with authority TO issue
clearing house loan certificates i'm order
TO enable banks TO settle balances be-
tween themselves These certihcateS,
will be based on bills receivablaA
collateral securities, cash assets, and
the united credit of the banks This
action is intended 10 distribute the re-
serves of the banks more evenly between
the institutions. Where one bank is
unable to settle its differences in cash It
will deliver securities and assets 10 the
certificate committee, and IL the commit
tee accepts the securities IL will author
ize the issue of certificates on them. The
united action of the banks is expected TO.
restore complete confidence.
II was just after 2:15 o'clock this after
noon that the failure OF Decker, Howell
IL Co., of a. Broadway, was announced
on the Stock Exchange. They maze an.
assignment TO William Nelson Cromwell.
The firm is one of the largest on the Ex-
change and was considered very wealthy.
1t had been identified for years with tho
movements of the Willard stocks and it's
members were generally considered VII
lard's special brokers. The failure was
considered the cloak that had been hang
ing over the market, and after IL was am
nounced a rally of l to ? per cent %
Cured.
IL every teaspoonfnl OF hHman hood