St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-07-27
THE BEARS PROFITABLE FUN
Largely Increased by the
Failure Of Nicholas & Co.
MiLLL0RS MADE BY SHORTS.
New York Banks Ship One
Million to Western Cities.
MOEEKED MEN INTERVIEWED.

New YORK, July 26.-Today was sar-
tastically described by brokers as the
banner day. 1t was expected that the
news of the Erie railroad going into the
hands of a receiver would cause
downright panic on the exchange. but
to the surprise of some there was moth
ing sensational in the first hour: there
was a general decline, as one broker eX-
pressed il, OF from one to four points,
the greatest fall being in Lake Shore.
which sold down from ia to l0912.
AS the day wore on. however, the stock
exchange presented a situation very
close to panic. At times the
sales of investment stocks pro-
ceeded in such volume and with
such violence as has never before
been witnessed eXceptin the worst days
of 1878 London bought for 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 Z points; New York Central. AZ;
Manhattan Elevated, p TO par: West
ern Union. Z. One extraordinary incl
dent was the sale of 1,200 shares OF
Evansville ~ Terre Haute,, d stock not
active on the exchange. They were
solo under the rule'' for an embar-
rassed broker, and, although the price
was quoted yesterday at 126 bid, no
buyer was found today until the stock
was offered at 75. decline of 81 points
In day, probably unparalleled in the
record of the stock exchange.
The Greatest Decline
Set in about midday, after which Man.
haitian reached par; Missouri Pacific,
1915; Western Union, 6714; Jersey Cen
tral, S915; st. Paul, 1875; Rock island.
545s: New York Central, 9l15; General
Electric, 443s. The bears had it entirely
their own way; there was no opposition
to their Ouslaughts. The announcement
OF tie failure OF Fl. |. Nicholas 81 Go.
added zest to the bears profitable fun,
if any were needed, and prices tumbled
right and left and withoutrh rhyme or rea-
son. As an illustration of this, the case
of the Manhattan Elevated railway may
be cited. r. NJ. Galloway, president of
the Merchants Exchange National bank
and vice president of the Manhattan
Elevated Railway company, said that
the earnings of the company were
never so great before in its history at
this TIME of the year, and that the road
was in splendid condition. There was
absolutely, he said. no reason or cause
for the decline in the price of the stock
Of the company.
At $50 O'clock bankers and brokers
of prominence said there was better
tone TO the market. but they would not
say whether bottom prices had been
touched yet for any stock exchange
securities.
In banking circles there was little
news up to O'Clock, but nervous con-
dilion of affairs was reported. Rates
for money were reported to be easy, but
there was little doing in the forenoon.
Bank officers were pursuing
A Waiting Policy,
they said-waiting to see what develop
ments the day would bring forth from
the country. The president of leading
national bank thus summed up the
situation: I'VE who make it our buSi-
ness TO know exactly how every bank is
situated, and just how much it can
stand, are, as result of that
knowledge, by no means ratified or
nervous over the situation. Speaking
with knowledge, have no hesitation in
saying that the banks here are perfectly
strong, and l feel quite happy about
the position. The banks are stronger
than they were ten days ago. and al
though there may be two or three yery
small banks which would have had a
hard time but for the protection afford
Ell every clearing house bank by the
action taken, there is not the slightest
reason for any anxiety with regard to
them.
81 think 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 came"
The subtreasury was debtor at the
clearing house today S39O,0OO, and it
settled that balance in gold. 1t paid
out over the counter about 100000 in
notes in exchange for gold certificates
and greenbacks of large denominations.
After that applications for small notes
were refused, the supply having given
out. 1t was learned that, although the
the subtreasury was supposed to have
about $1,000 of currency on hand, its
supply of items" ana "twenties'' had
absolutely given out, and that it was
especially short of everything else of
low denominations. 1t had, however.
a few ''nYes," which it was willing TO
exchange for
Gold Certificates.
Bank officers said that the situation
in that respect was pretty bad. As the
subtreasury receives a supply of notes
every day from Washington for redemp-
ton. 1t is hoped that it will be able ia
supply, at least in part, the demands
for currency that will be made upon il
tomorrow.
The clearing house loan committee
issued 500, 600 loan certificates TODAY
and retired 5000. coo. 1t was estimated
that about 81, 100000 was shipped to the
country today by New York banks
Much of it was in gold. This money
was sent to Chicago, Louisville, Phila-
delphia and other places.
RumOrs were plentiful today of re-
eeivers for several well-known CORPORA.
tons, including two railroads. MANY,
however, of which were utterly base
less. The president of a leading ma
hOnal bank having intimate relations