The state herald., 1893-05-12
NEW YORK FAILURES
GREAT FURRY IN WALL STREET
TIL. Collapse OF tn. cord.ss Company
Causes Several Broking Firms
to Suspend.

8, The bottom dropped out Of everything on
Wall street on the 9th and the stock exchange
was the center OF Wild whirl from the OPEN
Ing. The news Of the appointment Of re.
ceivers for the National Cordage Company
was followed by the announcement that 8. "
iire Of Ferris & Klmball was announced, and
on the heels of this came the news Of the sus-
pension Of w. l.. Patton & Co. Excitement
was intense, and prices fell SO rapidly that 1t
was almost impossible to keep track Of them.
1t was the worst day Wall street has seen In
The. week OF disaster. The hopes INDUCED In
that the furry would run Its course were pre-
mature.
The stock market opened amid great ex-
element and with prices about the same rs
the closing on the 9Th. 1t was very soon APP
out Regardless Of price. The discrimination
Of the banks against certain stocks, and es-
pecially the industrials, as collateral for
loans, compelled their holders to throw them
overheard. The slaughter of the industrlals
was awful, and 1t was very quickly seen that
there must be more failures No house largely
Interested In these stocks could be expected
to remain solvent.
The excitement on the floor Of the stock
exchange WAS Intense and the spectators were
nearly as Wild as the brokers.
By noon things were at a fever heat and
the nervous tension In financial circles showed
no signs OF relaxing. AT l3:45 p. IN. the fall
ure OF Ferris & Kimball was announced.
Then followed the news of the suspension
ofW. L. Patton 81 Co., and the brokers fairly
went crazy In their efforts to unload. Rarely,
II ever In the history Of the Stock Exchange
were there such wild fluctuations witnessed.
One Of the largest houses on the street was
said TO DO In trouble and Its failure only q
matter of hours. Several other failures were
announced during the afternoon,
According to those who passed through the
Black Friday trouble and all the financial up
heavals since, there never has been time
when Stock Exchange houses were so COM
pletely demorallzed as was the case Friday.
The situation resolved itself Into matter Of
selling for practically any price obtainable.
The enormous shrinkage shows plainly how
acute the panic had become.
The drop in quotations over night was
equal to Loco points, and had the pressure To
sell continued short time longer, there is lit
tie doubt that other house would have been
forced to the wall. As 1t was, London turned
up as n heavy buyer and, according TO compc-
tent authorities, took upwards Of 100000
shares, and at the same time investors who
have not put In an appearance in Wall Street
for years back took round amounts OF both
the railroad and industrial stocks. The buy
ing power thus exhibited turned the tide, but
not until American Sugar had dropped "a
points, the preferred IL, General Electric 90,
American Cotton on 5, Chicago Gas 1853,
Edison Illuminating 81, Manhattan Elevated
1917, National Cordagc preferred 25, National
Lead Z, preferred IL.
The activity In the money market acceler-
ated the strong movement, but later funds be-
came decidedly easier, the foreign exchanges
declined sharply, thus removing the possible
ity OF gold exports, and firms which had been
reported to bo In difficulty pulled through
safely. All this combined 10 create much
better feeling and the recovery was even more
rapid than the previous decline. All the
stocks mentioned advanced materially.
Late IN the afternoon II was reported that
IIavemcyer, the sugar king, had given s. v.
White 81, O0o, 900 and that the broker would
resume business Saturday. Mr.. White iE.
tends to settle with all creditors. He Ia un-
able to give definite idea Of his liabilities,
but Gays he will make public statement In a
49, IT. A~iis'eu his liabilities are
$500, 1000.