Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1895-12-21
WALLSTREETFLURRY
BEARS AND FOREIGN TRADERS.
They Combined to Make the Tron-
BILE, Using the Venezuelan Incident
n. n Prctext-Indignntion Against
Foreign Capitalists.

NEW work. December 20.--The Times
Tomorrow will print the following az
count CT the day in Wall street.
Collision between bear operators ;"
stocks and foreign trading houses SMASH
ed prices in Wall street to-day ran
money rates up to 80 per cent, w'"-
drew 81. 100 600 In gold from the reserve
and caused several financial iahures'
The decline in stocks affected the en-
| tire trading-list. Losses ran as hisn do
ten points at one time In severai suo-
stantia, securities. The bond market
| svmpathized actively with STOCKS.
| Good temper and moderation py the
banks and the influence OF the Seh''a,
Trust Company in placing $'SeV'v~ III
tho market in the last hour OF tradihs'
70 be loaned at normal rates. turned 'he
downward course of prices. RECOVERY
was rapid and general, but at the emu
of the day quotations showed ma'er'a'
no, losses The shock OF the attack ieie
tho market wavering and feverish'
| Accustomed as is the financial district
"a w,cked work In the security market
to-dav,s performance surpassed In mail
| c,ous design and manipulative cuniins
and holiness anything ever peiore a,,
| temnted Its success was compiete anu
that II should have been so was aina]ins,
since those weIl-informed knew now IL
had been brought about.
VENEZUELA INCIDENT.
r,o mon who engineered the raid useo
tho Venezuela incident as a preteA. Ia
,he market. They had been In high Iea-
ther since the Presidents message came
out and issued from the beginning ,ne
,nos, gloomy predictions OF It's hhahciai
/ rasults How far they may nave oeen
influential in inducing ther @ am. -, 49,
Ewrone 10 bring about conditioh W
"Wednesday which assured the eApo'' u
gold bv to-morrows steamers mas IT,
| been examined into. financiai tiih'us
had not been reused py yesterday TN,
noins of a slaughter in prices. ma
,,a,,a was reserved for special Pio-
naI,,n.. agency. which the pears iuihsn
"a THE worst apprehensions hau no.
sxnressed fear OF anything Approaching
to'dav,s happenings in intensity or scope
| since II is afternoon In LONDON "nen
business opens here. operators usuahS
read London quotations the hfs' 'ns
in the morning. They are always ih,.i
| esting and sometimes influential !" ."e
loot few days special significance mas
attached TO them because OF ruIiiois o'
I,nel,sh intention regarding American Sc
curities This furnished a srouho"o'N
for bear manouvres. .oa
Casual observers might nave suppo'o'
that Yesterdays London quotations.
dected a wholesale overthrow OF Anier,-
can securities there. FROM pes' a.,
so,,rcas NJ information, II appeared that
|
shares OF stocks. Such sales were con-
fned of course. to the few American
nronerties which are active in LONDON.
since there was danger OF faiiure Oh
the hear plot through this adequate
agency alone. even with London a pre-
sent source of financial anxiety. plans
were laid TO supplement attack through
London quotations by pushing up rates
for money here.
.t. CALLING OF LOANS.
Houses that handle foreign loans be-
came tools in this scheme They called
loans rapidly at the opening of busi-
ness. Money jumped from ? per cent.
To 7 per cent. at once. The combined in
duence Of London quotations and high
money caused the sale Of 10000 shares
of stock In the first hour. Money adj
vanced by leaps. The lenders apparently
had been frightened, and refused to put
il out again. An excited demand for II
resulted. and before O'Clock the rate
touched 30 per cent.
Meanwhile the banks and trust COM
panies had been doing all they could tc
ease the situation. Only one bank called
all its loans. The others extended every
accommodations to borrowers. They
were forced to ask for increased col
lateral protection, but that worked nc
Hardship, nor did II contribute In the
slightest degree to the money scare. The
sudden withdrawal Of 100000 OF loans
by foreign houses. including Canadian
banking agencies. did the business. and
especially as that money was kept out
of the market. When the strain became
acute several OF the banks and trust
companies sent word to the loan market
| that they had money TO put out at from
| to per cent. on good collateral.
The GallatIn and Merchants National
banks and the State. Union, Atlantic and
Union Trust companies. led In these offers
of relief The Central Trust Company put
81, 900 into the market, which eased
rates from 80 to 6 per cent. In half an
hour
Toward the close OF business re-
currence OF the money furry advanced
rates again to 60 per cent.
INDIGNATION.
There was much indignant comment
among bankers that the assertion OF Its
rights by this government should have
massed foreign capital, which has en-
I joyed favor and profit here, in bear
| attack on the security market. 1t seemed
inevitable that II these tactics were
followed, and IL the raid were to continue
large exports of gold would be necessary
in the near future.
Recognizing the source OF attack and
its effect. immediate and possible. with
the bears. and the foreigners In afiil!a'
ton. the favors shown by the loca
banks toward their foreign competitors
suffered some strain. 1t was said at ons
time In the day that the amount Of gold
taken from the Sub-Treasury might have
been much larger than 50, 10000. but thai
| legal-tenders were available only in notes
of small denominations. Gold Is paid
out for legal tenders. but the lega
tenders must be counted at the 6ub-Trea
sury before the metal IL passed ovei
the counter Notes Of large denomina-
ton are used ordinarily In exchange
The banks seemed to have only small
notes to-day. and the physical task OF
counting 81, 100000 in small notes furnishes
work for several days.
MIschievous schemers for extra golt
were believed to have been checked b,
this device.
MEASURE OF RELIEF.
Talk was heard Of a meeting OF banl
| Officers to plan measures OF relief. No
: thing came Of this. because 1t did not ap
/ pear that anything could be done jus
now. but II led to discussion as 10 th'
advtsa hiiitv of inanciers banding tOgeth