Omaha daily bee., 1893-05-14
iHAT MAY BE EXPECTED AS A RESULT
Indications that More Failures May Follow
in the Mar Future.
DISASTROUS WORK OF RUMoR MoNGER
Ono of tho Strongest Firms in New York
Forced to Deny the Report of its
Embarrassm ent at a Criti-
cal Period.

THE BEE. Wall street has had an inactive
but far from an unimportant week. Smashes
of the iddcn and terrific sort seem to be
over, but prices dol't go back to their for
mer level Instead they sag. There is an
unmistakable tendency throughout the
whole list toward lower prices. Liquidation
is proceeding on an enormous scale. 1t has
been an open secret for two years that tho
public has not been in Wall street. Upon
this fact the public is just now to be con-
graduated.
The present situation, 50 far as concerns
the stock market, affects the professional
contingent far more than anything or any
body else. This is an exception in the his
tory of previous punlcs
The street has yet many conspicuous peo-
pie still bravely insisting that not only tho
worst is over, but that what has happened
will really turn out to be a factor ontribu.
ting to boom. These same people are
loudly demanding that the law and the
courts shall. be invoked to punish the
wicked people, who they insist have
brought about Wall streets present uneasi-
ness. To the minds of these people there
has been a sharp break in stock market
prices, chiefly because the people have been
scared Tho market has been LIED down."
bucy SiS IL 10 luipIoDiulc Iutb
the rumor mongers have been
reckless and circulated hurtful yarns, but "a
bear liar cannot be more astute or industri-
Gus than is the same sort of an artist on tho
bull side. This, though, does not excuse or
even tighten the wrongs which have been
lately done upon the bear side
Injured by Fal e Reports.
There have been some notable incidents Of
bascless reports started merely to influence
the market and the distributors of these
falsehoods ought to be compelled TO answer.
Perhaps they will Meanwhile the stock
market quotations will probably hardly wait
to be buoyed up until agyressveness creeps
out of the grand jury room.
The sensational collapse of a score or two
of banks out west is a significant object les
son. Wall street, naturally, is amazed at
the disclosure. 1t is explained here that the
failed banks are unimportant, that they
have been banking Oh wind" and that the
c feet of their break will not amount to
much. This has hopeful sound. 1t also
sounds supremey silly, for banks cannot go
down and not do serious damage directly in
their own localities and force the damaging
influences far beyond local bounds. The
American investor generally, wherever his
home may be, must be astounded at the dis
closures which have followed the Columbia
bank failure. A merely natural ques-
tion for everybody to ask is III
Dwiggns Of Chicago can do banking on
such q scale and can spread abroad so wide
train of panic, why cannot other financiers do
the same' Why may not others be doing
the sameP
1t is pleasant and patriotic to believe this
is the only mushroom banking syndicate in
existence, but the public, and moro espe-
cialy the investing world, must be excused
for nervousness over the apprehension that
the worst may lot yet be known
Today's brief bank stock market was In
many ways surprising phenomenally
good bank statement was issued, showing q
large gain in surplus reserve, approaching
s.. 600, 600. This is largely due to gain Of
81, $50, 600 in legal tenders, most of which
have been received from the west, while
New York banks at the same time have cut
down their loans S4,501,0O0. The figures OF
increased surplus reserve were far better
than had been generally anticipated, so far
| as surface indications are concerned.
just IL Plea ing Fraud.
This weekly bank statement, for which
| Wall street always waits so anxiously every
| Saturday, is pleasing fraud 1t really rep
resents nothing significant. In the first
| place, it does not pretead to reflect condi'
| tions existing on the date on which il is
| issued. 1t is made up" on statements pre-
| pared in the middle of the week. Moreover,
it does not include the operations of many Of
| the most important hnanciers in the cities.
| Trust COMPARES are not in it.
| 1T is simply foolish for anybody 10 figure
| on tho financial conditions Mt this center
| while ignoring the operations Of the trust
| companies This is 80 palpable that 1t would
be waste of words We're any attempt made
| to explain or elaborate it.
There is no diminu tion of the nervousness
| which mas developed the past week in bank
| ing circles here There is no change in the
underlying situation. The countryat large is
still scantily supplied with funds, CONNER
cial and industrial borrowers are rebuffed
| and turned down. Credits are contracted
| beyond anything which the mercantile COM
| munity has experienced since 1884. On all
| sides is heard the cheerful fact that money Is
| abundant in Wall street, that Wall street
| rates Of interest are low. This, though, is
| not the healthful indication that TO outsiders
| il may seem IL Is indicative chiefly, almost
wholly Of the fact people who have ready
| money are unwilling 10 lend it except where
they make terms which will enable them To
call in their loans at practically moments
notice and have the same all the while pro-
tected by collateral with ready market
value.
Cannot Bo Cured In Day.
Wall street gains at the expense of the
country at large 50 far as this is concerned
The flow OF money into Wall street reflects
the fact that leaders are distrustful Of out
side credits Boiled down, tho meaning Ii
that the money lending crowd is scared
The evil effect of this condition is not TO bs
cured in day. Penalties are being paid al
over the country now for IL.
Merchants who have raised funds required
in their business, and manufacturers who