The Norfolk Virginian. [volume] (Norfolk, Va.) 186?-189?, 1895-12-21
AN INcIpIENT PANIC.
caused BY Malicious Collision Between Beat
operatives In Stocks and Foreign Allies.
VENEZUELA AFFAIR USED AS A pRE1EXT5
.i""ses tl,nt Handle Foreign loans
We're Tools in tho DespIcnble.
Sehrn'e.-Non Advanced by leaps
Excited Dcnand Raised 10 90 per
Veht-ccntrnl Trust Co. TO Iscscuo,

New York. Dec 20 The Times tn.
morrow viii print the following account
of the day In Wall street:
Collusion between bear operators ini
stocks and foreign trading houspsi
smashed prices in Wall street TO-DAY. 1
ran money rates up to 90 per cent. with.t 4
urew S",iOo0oO from the gold reserve
niin ,.Mn caused financial failures. The de-
Ghhc IN stocks affected the entire list,
| losses ran as high as 10 points at onei&
,,inc In several substantial securities, =
inS p3hd market sympathized actively;
Good temper and moderation by thei
| nanks ana the influence of the Central
| trust Company In placing 81, 500 900 In,
| tnr market In the last hour OF trading,i
I, ~ ne loaned ut normal rates. turned the.
uowhward course of prices Recovery;
was rapid and general but at the end.
OF the day quotations showed mnterials,
net losses. The shock or attack ieft{
tne market wavcring and feyerish n
Accustomed as is the financial dis;
,rlct To wicked work I'm security mar,
Ket, to-day'S performance SURPASSED In,
'hhllclnus design and manipulative cum.
,i,ns ana holiness anything ever before
attempted. It's success was complete. II
| ana that 1t should have been 80 was,I
;hhazinG, since those well informcdt
Knew how IL had been brought about.l5
| w iicli WHO engineered the ra Id uSeti?u
| the Venezuela incident as n preteyt iIr;
me market They had been In hight
| feathers since the Presidents messagr
came out and issued from the beginning,
| me most gloomy predictions of its s
| financial results. How far they NAV 4
nave hcen influential in inducing their
allies In Europe to bring about n con-
Iron ,na by "Wednesday; which assured !.
! steamers, has not been examined ITiS
nanclal tlmidity had not been reused 1
| bS yesterday to the point OF a slaughter. &
III prices, That move was reserved for
1 bears furnished. r. The worst nnpreha7,.a 4
sions had not expressed fear of any,
thing approaching to-day's happenings9 4
IN intensity or scope. 5S;I5si
since III Is afternoon In I, ,oaflon when! /,
business opens here operators usually
read London quotations the first thing
In the morning. They are always inter-
estlng and sometimes influential. In the.
iast lew days special significance has at-i
tachcd to them because of rumors Off
EhSllsh intention regarding Americanti
securities. This furnished q ground
work for bear manouevers. Casual OBJ:
servers might have supposed that yes.
terday's London quotations reflected a
wholesale overthrow of American se-5
curitics there. From best available
sources of informntlons 1t appeared
! that London sales did not exceed 90. 900
shares of stock. Such sales were con-,
fined, OF course, to the few American,
properties which are active in London;
Since there was danger of the failure
OF the bear plot through this adequate!
agency alone, even with London a pres
cnt source of financial anxiety, plans,
were laid to supplement attack through
London quotations by pushing up rates
for money here Houses that handle.
foreign loans became tools in this
scheme. They called loans rapidly at
the opening of business Money jumped;
: from per cert. to per cent. at once.
The oanbined influences of London
quotations and high money caused the
sale of 100000 shares of stock in the
first hour. f5s !s.S5a7S
, Money advanced by leaps The lends
ers apparently had been frightened, and;
refused to put it out again. An excited.
demand for 1t resulted and before q
o'clock the rate touched 80 per cent.
Meanwhile the banks and trust compa-l
nics had been doing all they could to-
, ease the situation. Only one bank called,
all It's loans. The others extended every
accommodation to borrowers. They
were forced to ask for increased coll
lateral protection, but that worked no.
hardship, nor did sit contribute in they
slightest to the money scare. The sud-
den withdrawal of s5,0 000, 600 OF loans bya
foreign houses, including Canadian5
banking agencies, did that business,gi
/, and especially as that money was kept
out of the market.
When the strain became acute several
, of the banks ana trust companies sent
word to the loan market that they had Z
money TO put ont from a to 8 per cent?
! on good collateral. The Gallatin and;
j Merchants National Banks, and the !
i, State. Union, Atlantic, and Central !
!, Trust companies led in these offers OFT
relief & & Sg4Hs5 s5ttSSSS 5tSSS
!. The Central Trust Company put ST. 4
+ 100000 into the market. which easedi u
! rates from 90 to 6 per cen In half an j
hour. Toward the close OF business a.
recurrence of the money furry advanc- i
cd rates again to 60 per cent. jaS3
There was much indignant comment
among bankers that the assertion Off
. it's rights by this government should If
have massed foreign capital, which has 1
. enjoyed favor and profit here, in a bear
attack upon the security market Il tS
seemed Inevitable that II these taotfcs
were followed. and II the raid were5
to continue large exports OF gold wouldSs
be necessary in the future. SaS
Recognizing the source of attack and IS
its effects. Immediate and possible, ,gwith#3
the bears and those foreigners In affilla4S
tion the spirit of friendliness shown
by the local banks toward their foreig1I5
competitors suffered some strain. It waYfss
said at one time IN the day Z hat tisis n
amount of gold taken from the sub v
Treasury would have been much larger 81
than So, 400, 600, but that legal tenders s!$
were available IN only notes OF small