New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-05-04
HEAVY BREAKS IN STOCKS
INDUSTRIAL SHARES SUFFER MOST.
NATIONAL CoRDAGE. CHICAGO GAS. SUGAR RE,
FINING AND OTHERS SLUMP" BADLY

NNilONhb tOKDAbE, CHltAOb VAS. SbbAh me-
FINING AND OTHERS SLUMP" BADLY
The distrnst and uncertainty which have been
growing in the financial and business community
for months past reached acute phase in Wall
Street yesterday. At tie Stock Exchange there
were heavy and, in many instances, sensational
breaks in the stock market due to extensive
liquidation. The severe declines naturally stlmu-
lated the circulation of rumors of trouble among
banks and some large houses. and operators, but
diligent inquiry failed to discover any founda-
tion for the stories. suspension was announced
at the Stock Exchange but the failure was a
small one. and the Street once more demonstrated
the wisdom Of the conservative policy which has
prevailed in speculation for a long time. There
were no new Developments in the financial situa-
tion, but there signs Of any improvement
in the conditions which have been unfortunately
working toward the existing depression.
Stocks and bonds alike suffered material losses
Yesterday bat the fall was most severe in stocks.
The better class of railway shares declined 1a3
per cent while in the industrial shares the break
extended to as ynuch as l0al3 points. En-
pcrienccd brokers said that they had seldom wit
messed such demoralizcd feeling as prevailed
among the bull traders. The only buying Of i'm
portancc came from operator, who had sold stocks
short AT nlgnrr pTlc'S, Dut tHlS WIS IL lftDt
barrier TO the steady outpouring Of long stock
The purchasing power in the speculation appeared
TO be wholly exhausted in view of the increasing
paralysis Of credit and confidence caused by the
monetary and financial situation. Panic, in the
sense in which it is ordinarily used in Wall Street
was lacking but gloom and discoura cement We're
profound Bankers say with regret that this con
dition Of the public mind is most difficult to cope
with. 1t has been gradually growing since the
business community was confronted in last NDvcm-
bcr with the success of an Administration pledged
to extreme radical changes in the financial AMI
economic policies Of the country.
rNEA>INESS AFTER THE ELECTION.
Tho day after the Presidential election promi-
ncnt bank president eating his luncheon in Del
monicos B,oadet restaurant said to a friend :
This is terrible rews But thank Providence we
have about a year in which to put our houses in
ORDER That remark seems to have been tie
key 10 the future course of the security markets
In November there wer" numerous powerful op"r-
ators who were heavily loa led with stocks pur
chased under belief in 4 different result from tn"
elections These rallied to the support of values,
and for n time conducted an actlv" upward move
mcnt while strenuous efforts wrr" making In
Congrc& to secure a repeal of the Silver PurchaS"
law. BIT shrcwd brokers say that under cover Of
the boor" steady process Of liquidation was
carried on until securities were gradually trans
fcrrcd from stronger into weaker hands. The
strength Of Wall Street the present stress rest,
upon the policy adopted by the large operators in
curtailing their responsibilities, the conservative
course of commission houses in advising against
extended spccuations and the cautious proceed
ings of the banks in protecting their reserves and
RESOURCES So far a. has yet been developed, the
severe losses OF the week have fallen upon opera
tors on margins, whose power OF holding their
purchases has been progrc- c-sivclv impaired by the
steady shrnkagc In prices in the last month or so.
The vuncrahility Of the industrial stocks is
considered natural in view Of the uncertainty
into which the tariff outlook has been plunged.
Many Of these companies counted upon increasing
profits in rhcr" should be- no change in the
activity Of general industry. But il has been i'm
possible 70 disguise the growing contraction of
business that has followed the injection of the
element of uncertainty n.to tie currency and in
dusiria outlook The extraordinary session Of
Congress generally expected in the autumn has
afforded no announcement to business men. The
party in power although committed To a radical
treatment of the tariff. cannot bc expected TO ac-
compli,n important changes for several months
and hence the unfortunate prospect is presented
questions, maintaining that element of uncertainty
which i, the thing most dreaded by the mercantile
community
WHAT BANKERS CONSIDER GRAVE.
The financial situation also presents the same
unhappy promise of continued uncertainty
Bankers in discussing conditions Yesterday drew
sharp distinction between th. speculative and
the monetary position They viewed with com
parativc cauanmty the prospect of collapse
in Inflated spcculatons but lamcntcd the un-
fortunate complications which Affect the lcCit
mate operations of capital. The hopeless division
on financial questions III the Democratic party
and the pow.rcs>ncss of the Administration 10
relieve the situation are causes Of general regret
some cncOura cement was drawn from slight
easing of in foreign exchange quotations ycstcr
day. hut the decline was not sufficient To furnish
positive relief. Wcll-iniormcd bankers still
consider il almost certain that S2,o0o,o00 70
81 100000 gold will be- shipped abroad on Sat
urday Cable dispatches from London pointed
to probable advanc" to-day in the discount
rate of the Bank Of England, II step which will
tend to increase the facility for exchange opcr
atons that will lead to further exports of gold
Money on call at the Stock Exchange was easy
at ia5 per cent. but the outside market for
commercial paper continued ut stand and
time loans were restricted by the lack of bank
accommodations. Heavy demands were made on
the city banks by country correspondents. TIL"
country banks, which were recently the only
buyers Of commercial paper. are now seeking
for money on their own account. and balances
here were largely called for Bank officers said
that the movement TO the interior Indicated an
important decrease In deposits for the week.
Nothing was known in banking circles here
of the report from Washington TO the effect that
Secretary Carlisle contemplated visit to this
city hcic on Saturday or Sunday for the purpose
Of another conference with the banks. Men who
would be likely to know the facts said that they
had received no ntimatons that! the Secretary
entertained such an intention. IL is not easily
seen how another conference with the Secretary
would correct the situation, and many bank
officers think that the Administration il with