The record-union., 1893-07-27
Special to the REcoRD-UNIoN.


castically described by brokers as ban
ner day" A large portion of the day the
Stock Exchange presented a 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 a
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, net
ting points, New York Central At, and
Western Union !.
One extraordinary incident was the sale
of 200 shares of Evansville and Terre
Haute stock, not active on exchange.
They were sold under rule" for an en-
barrassed broker, and, although the price
was quoted yesterday at l26 bid, no buyer
was found to-day until the stock was of
fered at IS, a decline of 56 points in day,
probably unparalleled in the record of
the Stock Exchange.
The bears had it entirely their own
way. There was no opposition to their
onslaughts. The announcement of the
failure of II. 1. Nicholas & Co. added
zest, and prices tumbled right and left,
and without rhyme or reason. AS an
illustration of this, the case Of Manhattan
Elevated may be cited. The earnings of
the company never were so great before
in its history at this time of the year, and
the road is in splendid condition, and
there was absolutely no reason or cause
for decline i'll its stock.
AT 2:30 o'clock bankers and brokers of
prominence said there was tone to the
market, but they would not say whether
bottom prices had been reached yet for
any stock exchange securities.
The President of a leading national
bank said this evening: The banks here
are perfectly strong, and although there
may be two or three small banks which
would have had hard time but for the
protection afforded by the Clearing house
there is not the slightest reason for any
anxiety with regard to them"
The Sub-Treasury was debtor at the
Clearing house to-day for 1890, ,0O0, and
settled the balance in gold. 1t is almost
entirely out of currency, especially small
bills. Bank officers said the situation in
that respect was pretty bad. 1t is esti-
mated that about Sl,OOO,OOO was shipped
to the country to-day by New York banks.
Much of it was in gold.
Rumors were plentiful to-day of re-
ceivers for several well-known corpora
tons, including two railroad companies,
many. however, of which were utterly
baseless.
With reference to the condition of the
Philadelphia banks, the press of that city
to-day asserts that the New York banks
owe the Philadelphia banks about SO, ,0O0,-
600, while the Philadelphia banks owe
New York banks S6,OOO,OO The New
ork bankers, however, say the money
the New y ork banks owe Philadelphia is
mainly on reserve accounts. The money
which Philadelphia banks owe New
York banks is for drafts sent for collec-
ton, and money for which they have re-
ceived but not remitted. The reason they
give for not remitting the money is that
they cannot get New York exchange ex-
cept at high rate of commission, and
cannot spare the currency. Yet they
claim a cash reserve of more than 80 per
cent.
A dispatch from Philadelphia tonight
says the banks there pay a premium for
exchange, and it does not imply any
weakness whatever on the part of the
Philadelphia banks. The rate for New
York exchange has averaged 50 per s, ,OGO
for several weeks, and in consequence
Philadelphia is considerably out of
pocket.
STOCK EXCHANGE FAILURE.
New YORK, July 26.-The Stock Ex-
change firm of Nicholas Il Co., considered
quite prominent, has failed.
Nicholas was director of the Evans
vile and Terre Haute Railroad. Mon
day the stock of that road sold at 127; to-
day only 20 could be got for single hun
dred shares. The house succumbed to
the steady shrinkage of values which has
been going on for months.
In point of liabilities it was surprising.
the outstanding obligations amounting to
81, $4,000. Although it was known that
the firm was pressed for money, that cir
cumstance is so common in Wall street
nowadays that there was no more appre-
hension on the part of Nicholas than
dozens of other firms not especially sus-
pected. The firm had been engaged in
a general stock brokerage business, deal
ing in great number of the best stocks
The assignee said this evening: Their
collateral is splendid paper, and all we
ask of the creditors is not to be frightened
into selling it Off, but hold on to it. If
they do, they will receive 100 cents on the
dollar and there viii be handsome sur
plus for the frm.''
The cause of the failure, it goes without
saying, was the financial stringency, call
of loans and inability of the firm to put
up the necessary margins.
THE ERIE ROAD TROUBLES.
New YORK, July 26.-It is semi-offi-
ciaIly stated that there will be no reor-
ganization of the Erie property, but the
net earnings the next three years will be
applied to paying off the floating debt,
and this will prevent a reorganization
and assessment.
D. 0. Mills, said to be one of the
largest holders of Erie seconds, says in
regard to receivership: Undoubtedly
confidence has received another shock,
but the pnblic must recognize the
stringent times through which we are
passing. I expect to hear of other fail
ures of the commercial world. The
trouble is there is very little money, and