The morning call., 1893-07-27
Distress on the New York
Stock Exchange.
SECURITIES ARE SACRIFICED.
Singular Reduction in Prime Values
the Feature-Evansville Fell Off
Over Fifty Points.
Special to THE MORNING CALL

ner day."
A large portion Of the day tn 9 Stock Ex-
change presented a condition very close to
panic. At times the sales of inv estment
stocks proceeded in such volume and with
such violence as had never before been
witnessed except in the worst days OF
1873. 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 up
ward, Lake Shore in particular netting
points, New York Central Az and West
ern Union T.
One extraordinary incident was the sale
of 1900 shares of Evansville and Terre
Haute stock not "activa" on the exchange.
They were sold "under rule" for an ON
barrassed broker. and although the price
was quoted yesterday at 126 bid no buyer
was found to-day until the stock was
offered at 70. This decline of 81 points in
a day had proba bly, never been paral-
leled in the record Of the Stock Exchange.
The bears had it entirely their own way;
there was no opposition to their on
slaughts. The announcement of the failure
OF II. l. Nicholas e Co. added zest to the
situation, and prices tumbled right and
left, and without rhyme or reason. AS an
Illustration of this the case Of the Man
haitian Elevated may be cited. The earn
ngs of the company were never so great
before in its history at this time of the year
as now. and the road is in splendid con-
dition. There was absolutely no reason
or cause for decline in its stock.
At thalf-past o'clock bankers and brokers
n
the marker, but they would not say whether
the bottom prices had been touched yet for
any Stock Exchange securities.
The president OF a leading national
bank said this evening: "rhe 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 a debtor at the
Clearinghouse to-day to the tune of
$500, 900 and settled the balance in gold.
1t is almost out of currency, especially
small bills. Bank officers say the stua-
tion in that respect is pratty bad. 1t is
estimated that about s 100. UU0 was shipped
TO the country to-day by New York banks.
Much OF it was in gold.
Rumors were plentiful to-day of receivers
having been appointed for several we'll
known corporations. including two rail-
road companies. Many, however, of these
rumOrS were utterly baseless.
With reference 20 the condition of the
PHILADELPHIA banks. the press of that city
to-day asserts that New York banks owe
Philadelphia banks about S9. 0O0. GO. while
Philadelphia banks owe New York banks
$6.0OO,0OO. New York bankers. however,
say the money which New York banks
owe Philadelphia is mainly on reserve ac-
counts. The money which Philadelphia
banks owe New York banks is for
drafts sent for collection and money which
they have received. but have not remitted.
''The reason they give for not remitting
us this money" said the New York banker,
sis that they cannot get New York exchange
except at high rate of commission and
cam OF spare the currency"
A dispatch from Philadelphia tonight
says that the banks there pay a premium
for exchange, and that does not imply any
weakness whatever on the part OF Pbila-
delphia banks. The rate for New York
exchange has averaged So per $1,000 for
several weeks. and in con seQuen ce Phila-
delphia is nsid or ably out of pocket
The Stock Exchange firm of Nicholas &
Co., considered quite prominent. failed
this morning. Nicholas was director of
the Evansville and Terre Haute Railroad.
Monday the stock of that road sold at 1877;
to-day only 20 could be got for single
hundred shares. The house succumbed to
tho otoodu hrip ksUo Of voiuoc ~,hioh ho.
been going on for months.
The firm has been bullish and Is credited
with having great deal of money in in
dustrial booms. The failure caused a
rapid decline on the stock market. In
point of liabilities it was surprising, the
outstanding obligations amounting to
S1,250.0OO 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-
henson on the part OF Nicholas than of
dozens of other firms not especially sus-
pected.
The firm has been engaged in general
stock brokerage busn ess. dealing In great
number of the best stocks. The assignee
said this evening: "Their collateral is
splendid paper and all we ask of the credi-
itorS is not to be frightened into selling il
off. but to hold on 10 it. If they do, they
will receive 100 cents on tho dollar and
there will be handsome surplus for the
firm. The cause Of the failure. it goes
without saying, was the financial strip-
gency, the call Of loans and the inability of
the firm to put up the necessary margins"
j. B. Dumont, member of the Stock
Exchange since 1879 announced his sus-
pension this afternoon. Dumont was for
merIy vice-pre.ident of the st. Paul road.
The decision to put the Erie road into
the hands Of receiver was not reached
till late yesterday. as it was found neces-
sary to prevent sacrificing the securities.
The company's floating deb. is about
100000, considerable of which is held
abroad. but we'll secured.
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 public
must recognize the stringent times through
which we are passing. l expect 10 hear
of other failures in the commercial world.
The trouble is there is very little NJ ouay.