Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1890-11-12
bling to purchase and prices leaping up 2

hrm tone prevailed the highest prices were
not generally maintained.
Reading and Burlington were conspicu-
Gus for weakness, and Louisville and Nash
vile and North American displayed most
strength. Union Pacific held at from As to
46z, and afterward held steady at about AZ.
Some sales were made under the rule for
the account of Whitney & Co.
RumoIs of trouble among the banking
institutions were current all day, but no
one paid much heed, thinking they were
the usual emanations of bear minds.
After the close, however, it was learned
that three banks, members of the Clearing
House Association, had difficulty in set
Ting the claims of other banks against
them. There was balance against the
Bank of North America of 81 100000,
which it was unable to settle. The other
banks were the North River and Mechan-
ics' and Traders.
How the heavy balance was created
against the Bank of North America WAS a
puzzle.
During the day the Mechanics and
Traders made its settlements with the
Clearing house all right, and The other two
banks received assistance from other banks
in the association and pulled through all
right.
At the Bank of North America it was
stated that the trouble was directly due to
the account of Decker, Howell 81 Co., and
now that account with that bank was in
stronger position than ever.
The most important factor in the devel-
opments was the scarcity of money. Right
up to the close it was in urgent demand
and per cent. and legal interest was
charged, equal 10 169 per cent. per annum.
This fact and the troubles of the banks
caused special meeting of the Clearing
House Association, and after long session
it was decided TO- appoint committee, con-
sisting of the President, with authority 10
order to enable banks to settle the balances
between themselves. This action is ex-
pected to restore complete confidence.
The failures reported are numerous. The
first announcement to-day was that of
Charles NJ. Whitney & Co., prominent
members of the Exchange. Charles II.
Whitney & Co. represent here the Whitney
National Bank of New Orleans and some
other Southern financial institutions. The
firm was composed of Charles d. Whitney,
Edwin S. Larcher and Frank NJ Larcher.
Their assignment is to George W. Quintard,
with no preferences.
Whitney & Co. have been heavy losers
in several stocks, of which they carried
large line, and some of which for month
past have been almost unsaleable. 1t is
not known yet whether the aggregate liza
bilities will be sufficient to cripple any
other traders.
The assignment is reported of John T.
Walker, Son e. Co., importers, etc. They
are rated by R. G. Dun & Co. at over $780,
900. The firm was composed CT John T.
Walker, John w. Coombs and Joseph
Walker. William T. Ryle was made as
signee.
The cause of the failure of Walker & Son
was the inability of Nightingale Bros. &
knight of Paterson, N. j.. silk menufact-
urers, to liquidate their liability to the firm
According to Assignee Rytes, the Paterson
firm owes the estate of John T. Walker &
Son, $4,000 of which 100000 is overdue.
The active capital of Walker & Son for the
past two years has been 100000, so they
were unable to withstand the loss.
The firm has been carrying heavy load
for the past four years, and whenever the
Paterson firm was unable TO meet its obi
cations it was taken care Of Owing to the
tight money market and a suspicion as to
the silk firms paper, caused by several re.
cent failures, the firm was unable TO get the
usual accommodations and suspended pay
ment. The liabilities are 81, 100000. The
nominal assets are 81 100000, composed of
$500, 900 in merchandise, and 100000
worth of accounts and bills receivable, of
which over S400, 600 are due from Night
ingale Bros. d knight.
An attachment was issued this afternoon
against nightingale Bros. & knight, silk
manufacturers of Paterson, n. Y, for $685.
069 favor of Walker, Son & Co., assignees
of the Walker firm. 1t is said the attached
firm owes them $4,000.
fo.1 IS 4, n
also announced on the Stock Exchange
Decker, Howell & Co. made an assignment
to William Nelson Crowell. The firm is
one of the largest on the exchange, and is
considered very wealthy. 1t has been iden-
tilted for years with the movement of Viii
lard stocks, and was generally considered
Wizards special brokers. The failure dis
persed the cloud that had been hanging
over the market. and after it was an
nounced rally of l to per cent. occurred.
Assignee Cromwell said this afternoon:
The liabilities are about $40, 000, 600, and
the assets at present market prices largely
exceed that sum. The liabilities are due
almost entirely to banks and bankers on
loans made in the course of business and
are well secured. The cause Of the suspen-
sion was the inability to borrow the neces-
sary amount of cash required in the days
business. The firms transactions were
very large, it being necessary to borrow
several millions daily.
The firm had an abundant of collateral
to-day and il was not for the lack of secur-
ity, but the inability to make ii available
that caused the crash. 1t was simply
matter of absolute inability to get money
on the best securities, owing to extraor-
binary money stringency now prevailing.
As securities are their special line there
may be disposition on the part of the
creditors to sacrifice them on the market,
but such course would be suicidal. IT
the creditors have good Judgment to hold
securities they will be amply protected,
The firm of Decker, Howell & Co. was
one of the most prominent on the Stock
Exchange. 1t was identified not only with
the Willard stocks but with the Standard
Oil interests as well, and also carried &C.
counts of some of the largest stock ope-
rators in Chicago. After their failure was
announced, large sales for their account
were made, under the rule, in the Edison
General Electric stock, forcing il down Al
points A large amount of Great North
ern preferred, Northern Pacific common
and preferred, North American, Manitoba,
Wisconsin Central and Missouri Pacific was
also sold, causing depression in those
stocks.
PHILADELPHIA, November 11th. - The
stock brokerage firm of Narr & Friend has
suspended. They say their embarrassment
was caused by the continued drains pro-
duced by the active market of the past ten
days. The firm hopes the suspension will
only be temporary.
They are are unable yet to make state
ment Of the assets and liabilities, but it is
thought they are heavy. The firm has
been long of the market lately, especially
on Northern Pacific stocks. When these
stocks broke badly to-day on account of
the failure Of Decker, Howell & Co. in New
York, Narr & Friend called upon a num-
Der of customers for margins, but they
failed to respond, and the firm could not
carry ont their contracts. This evening ii
is said that S25 900 will cover their differ
ences.
WASHINGTON, November 11th.-Secretary
Window said this evening that his latest
information from Wall street was that the
situation was improving, with indications
that the worst was over. He declined TO
say whether the Treasury Department
would or would not do anything for the
relief of the money market, but admitted
that he was giving the matter serious con-
sideration. The Department, he added,