The sun. [volume] (New York [N.Y.]) 1833-1916, 1893-07-19
mill THUD IN WALL STREET
srpsEr VAS NEVER BLUER THAN
TWAS YESTERDAY

-. Hears to Great Boldnens-Mnny
...... Now selling on tho Basis OF
:, 20 10 Per Goat. Morey Market.
,,,io with none OF the usual physical
.....t.ristlce OF such an event took place on
-. STOCK Exchange yesterday. In other
.,,s tho generalization was measured by
w.. alone. and was not reflected in enor-
r .ns transactions, erratic fluctuations. and
'..,hi,lons Of wild excitement. That the
lain upon Wall street was intense. particu-
vi, mon that portion directly interested in
...n,,les, MAY BIO inferred from the fact that
-. nst declines in tho stocks most extensively
III, IN ranged from three to more than
.,sht nor cent The selling that was SO terri
t,v efY,ctSe started In London. and Mt first
Al. strest was inclined to take the view that
a. hears here were responsible for the weak
-, ~ the market for American securities In
I.sdon and for the bulk OF the orders that
s.,.io, nrbltrage houses received from that
centre
mi. susplcion was soon abandoned. because
~ Tho magnitude and apparent urgency OF
,hs selling by banking houses in close COM
munIcation with London. This suggested
irouble at that centre. and the conjecture had
hardly begun to take form as q report when
.sble advices came to hand telling OF extern
siye liquidation by prominent house which
4, Int little known on this side. but which, 1t
x,s soon learned. has occupied position Of
inheritance. For time t no London corre-
spondents OF prominent banking houses here
,t,ern pted 10 conceal the facts. But as soon
As the statement was published here that
Crews Lichtinstadt & Co. was the London
house referred to all attempt at discrimination
was abandoned.
Little could be learned about the concern
here except that it has had large interest In
American as we'll as Continental securities.
and It is said to have important connections
with Berlin. 1t is described as German
Hebrew firm. which has heretofore stood high
financially. 1t is also said that 1t was carried
over recent emergency in Its affairs by
Baron fiirsch. 1t is not understood here that
the firm will suspend. but simply li1uidate its
ventures. Its m!sfortuncs have been caused.
It is said. by the spcculations OF one OF the
junior rai tiers.
The determination OF tho firm to liqudato
resulted in sales here Of about 10000 shares
Of various stocks. The bears were quick to
detect the trouble in London. II indeed they
were not accurately advised Of 1t. and it gave
them fresh inspiration. AS every campaign
they have engaged in for several weeks past
never moro confident than they arc to-day.
Hence they attacked values with Il degree Of
holiness that would ordinarily seem fool
hardy. They have in their favor. in addition
to the liquidation which is going on in gen.
srM business all over tho country. conscious
ness Of the timidity and impoverished con-
dition OF their usual opponents.
The London selling. supplemented by that
Of the bears, naturally precipitated local liqui-
dation. Tho three together resulted in o con-
tinuous decline from start to finish. The bears
themselves would doub tless have lik ed to have
seen n rally. for they bought stocks freely now
and then to secure part Of their profits. Theirs
vas the only conspicuous buying. and. Of
course. they covered their stocks In anticipation
of rally upon which they could put them out
again. In the last hour the pressure to sell
became m ost urgent. and In consequence the
was more pronounced than at
any time during the day. and final prices were
very nearly the lowest.
Yesterdays market will be long remembered
for three extraordinary features. One was the
entire absence Of support accorded the market
As rule every downward movement In prices
encounters more or less opposition from pools
and operators com mitted to the long side. So
far as can be learned there are no bull pools
1t present und no individual operator has
ventured to oppose the decline. II this factor
were present the market would huctuate moro
widely than 1t does and the shrinkage in
values would be constantly interrupted. As 1t
u, the course Of prices was steadily downward
Yesterday. and tho only check the decline has
encountered Of late has come from the cover
Ing OF shorts
For this reason the shrinkage In values yes
terday was particularly distressing and alarm
Ing to speculative holders Of stocks. They felt
That they were dlsorganized and without lead
ership. and entirely at the mercy OF their ad-
Fersariea They saw stocks sink. apparently
81 their own weight and they must have ex-
DsHencsd the fear and despair of routed
'rnY. The only buying OF stocks now for long
account 10 by those who can pay for them.
ihis class 10 generally described as bargain
luntors." but recently thu term panic bird"
,as been coined as an appellation for them.
lhis uncompimentary term would seem to
imply that they pick up the stocks that scared
md impecunious holders throw overheard.
The purchases that these bargain hunters
let. since they Offset the liquidation to an ex-
e In ahd II they are continued long enough
nv, I,eapce the supply OF floating stocks That
SS s 6y the way, Is not very large. or else
n Is snort interest Ia very much more extern
I'VE Than the majority Of people imagine, for
i !. pears IND II no easy work to borrow all
LOCKS they require to make deliveries against
nelr snort sales Nearlyal OF the active shares
eau Tor considerably less than the ruling
'aa lor money. and few Of them command
y emiuni. 1t may be. OF course. that portion
\ me borrowing demand Ia deceptive. as In
icating the magnitude OF the short interest.
W. me reason that portion OF the stocks hor-
v oneo may DO against sales OF stocks by Lon
An9ther feature OF yesterdays market was
- osbroportion OF the decline to the deal
rs. The total transactions were about $780,
w shares, or only about one-third OF the
mount usually traded in when the market
moves rs violently a. II did yesterday in either
direction. Still a third peculiarity was the |
Act that no marked excitement MAS reflected
inc dealings. A decline OF 3 to 3 points in |
hhe actlyc list has Invariably heretofore turned
Ie otoek Exchange into paniemonium; hut |
ne appearance OF the floor yesterday, even
men the market was at Its worst. did not sur-
est that anything remarkable was taking
81. Paul led the list In point of activity. partly
eehuse OF the interest London has In the |
so .fk, ana also because material falling off |
me gross earnings OF tho company for the |
ecoyd week OF tho current month attracted |
M iEhrs a. the stock. On sales OF nearly So
Nv PARIS It closed 81 per cent. lower tina on |
l,ondvy, at OPS. As diyidands are paid uDon |
70 stdck at the rate OF I per cent. per anntim, |
= lhlIestment In 1t mt current prices would |
ieia Nearly = per cent. Chicago Gas dropped |
u Per KENT, TO 53k. at which price. being a i |
" cen stock. 1t would yield nearly IL per |