The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-07-27
New York Bankers Began to Draw In their
Change. Resulting in Some Wild Scenes.
Sensational Incident Connected with
Slump in E. & I. Il. from 127 to 20.
Two Firms of Brokers Fail-Philidelph!a
Banks Giving Trouble - Generalization
Both in Montreal and London Reported.



tically described by brokers as the banner
day. It was expected that the news of the
Erie railroad going into the hands Of re-
ceiver would cause . downright uanio OH
the exchange. but. to the surprise of some,
there vas nothing sensational in the first
hour. There was q gentle decline, as one
broker expressed it. of from one TO four
points. the greatest fall being in Lake
Shore. which sold down from ia to 109la.
As the day wore on, however, the Stock
Exchange presented q situation very CLOSE
to panic. At times the sales of investment
stocks proceeded in such volume and with
such violence as has never before been
witnessed except In the worst days
of 1873. London bought for q time.
but proved quite powerless to stem
the tide of liquidation. Some of
the best stocks on the market broke from
points upward, Lake Shore. in particular.
falling points; New York Central. Al;
Manhattan Elevated. u. to par, and West
ern Union, z. One extraordinary incident
was the sale of 200 shares of Evansville 81
Terre Hsute. q stock not active on the ex-
change. They were cold under the rule"
for an embarrassed broker. and. although
the series was quoted. yesterday. at 126
bid. no buyer was found to-day until the
stock was offered at IS, q decline of SO
points in q day. This was probably un-
paralleled in the record Of the Stock Ex-
change. The greatest decline set in about
midday. after which Manhattan reached
par; Missouri Pacific. 1871; Western Union.
67lR; Jersey Central. s9l4; st. Paul. 49ls;
Rock Island, 5i's; New York Central. 81 lai
General Electric. 44as. The bears had 10
entirely their own way; there was
opposition to their onslaughts. The an
Douncement of the failure of ii. /. Nicholas
IL Co.. particulars of which Will be
found in another column, added Zest To the
bears profitable raid, If any were needed,
and prices tumbled right and left. Nloho-
las Is director in the +. " L. II. As an
Illustration of this the case OF the Manhst-
tan Elevated Railway Compa ny may be
clted. X. NJ. Gallaway. president OF the
Merchants Exchange National Bank and
vice president of the Manhattan Elevated
Railway Company. said the earnings or
that company were never so great before
In its history at this time of the yea- as
they were to-day. and that the road was in
splendid condition. There was absolutely,
he said. no reason or cause Tor the decIne
In price of the stock or the company. at
hslf.past 2 o'clock bankers and brokers Of
prominence said there W as a better tone TO
the market, but they would not say
whether bottom prices had been touched
yet fer any Stock Exchange securities.
BANKERS WERE WAITING.
In banking circles there was little news
mp to Q O'Clock. but . nervous condition of
affairs was reported. Rates for money were
reported to be easy. but there was little
dong in the forenoon. Bank officers were
pursuing a waiting policy-waIting to see
what developments the day would bring
forth from the country. The president OF
the leading national bank thus summed up
the situation:
1--WE. who make it our business to know
exactly how every bank Is situated and
just how much it can stand. are. as a result
of that knowledge, by nc means ratified or
nervous over the situation. Speaking
with knowledge. have no hesita-
here are perfectly strong. and | feel
quite happy about the position. The banks
are stronger than they were ten days ago,
and although there may be two or three
very small banks which would have q hard
time but for the protection afforded every
clearing house bank by the action taken.
there ia not the slightest reason for any
anxiety with regard to them. / thin5 that
we can fairly say that we owe our strong
position TO the fact that we took action
and provided the means of defense before
the trouble eame."
The subtreAsury was debtor at the clear
balance IN gold. 1t paid over tho counter
about 100000 In notes in exchange
for gold certificates and green
backs of large denomination. After
were refused. the supply having given out.
it was learned that although the sub
treasury was supposed TO have about Sl2,
600 of currency on hand, its supply OF
tens and "twenties" had absolutely
gwen out. and that 1t was practically
short of every thing else OF lower denomi-
nations. 1t had. however. few "hves."
which it was willing to exchange for gold
certificates. Bank officers said the SIT
ustIon In that respect was pretty bad.
As the subtressury receives supply of
notes every day from WashnQton for
demption, IL Ia hoped that 1t will be able
TO supply at least In part the demands for
currency that will be made upon it to-
morrow.
The clearing q house loan committee issued
100000 loan certificates day, and retired
S20000 10 was estimated that about
g., 000. 600 was shipped TO the country. TO-
day. by New York banks. Much of IL was
In gold. This money was sent TO Chicago.
Louisville. Pbilsdelpb and other places.
RumOrs were plentiful to-day OF receivers
for several weIl-known CORPORATIONS. in
cluding two railroad companies. Many,
however, OF these were baseless. The
president of leading national bank. hsv-
Ing intimate relations with many of the cor
porations whose names were thus reckless
ly banded about the street. when asked as
to thoir truth. pointed. for an answer. To
the verse of the day In his calendar which
read az follows: ITO answer an idle rumor
is To cenfirm 10 in the minds of many. Why
20 into the dock when you have never been
summonedp
PHILADELPHIA BANKS IN TROUBLE.
To-day's Philadelphia Press published
the circular letter sent by a New York
bank to its dealers informing them of the
difficulty that now exists in collecting
drafts in Philadelphia, and declared that
"the statement. SO far as it reflects on any
Philadelphia bank. Is false and unjust"
The Press also says that the New York
banks owe the Philadelphia banks about
S9.0O0o00 while the Philadelphia banks
owe the New York banks $1,000 COO
Assuming that latter statement TO be
true," said q New York bank president to-
day to q reporter. that does not alter the
condition of affairs as already describ bed.
The money which New York banks oHe the
philadelphia banks is mainly on the re-.
serve accounts. which cannot be charged
against for drafts sent to Philadelphia for
collection. The money which the Phila-
delphia banks owe the New York banks is
for drafts sent TO them Tor collection, and
the money for which they have received.
but have not remitted to us.n One we'll
known national bank. which was owe ed
$780, 900 by ono Philadelphia bank on 40.