The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-12-21
A BIG FURRY IN SECURITIES.
(Continued from BIS 20

points at one time in several substantial
securities. The bond markets sympathiz-
ed actively with stocks.
Good temper and moderation by the
banks and the influence OF the Central
Trust Company in placing I.50OOo in
the market in the last hour of trading to
be loaned at normal rates, turned the
downward course of prices. Recovery was
rapid and general, but at the end of the
day quotations showed material net losses
The shock of the attack left the mar
ket wavering and feverish.
Accustomed as is the financial district
TO wicked work in the security market,
to-day's performance surpassed in ma
hcious design and manipulative cunning
and holiness anything ever before at
tempted, Its success was complete, and
that II should have been so was amazing,
since those well informed knew how It
had been brought about.
The men who engineered the raid
IN the market. They had been in. high
feather since the Presidents message
came out and issued from the beginning
the most gloomy predictions OF its hnan-
cial results. How far they may have in
fuenced their allies in Europe to bring
about the condition by selling their secu-
rites Is not known. Financial timidity
had not been reused by yesterday to the
point OF a slaughter in prices. That
move was reserved for special proPe-l-
ing agency which the bears furnished.
The worst apprehensions had not express
ed fear OF any of the approaching tO-days
happenings in intensity or scope.
since IL Is afternoon IN LONDON Wnen
business opens here, operators usually
read the London quotations the first thing
in the morning. They are always inter-
esting and sometimes influential In the
last few days they have been most sig
nificant regarding American securities.
This furnished a groundwork for bear
maneuVers; Casual observers might have
supposed that yesterdays London quota
lions reflected wholesale overthrow of
American securities there. From the best
available sources of information. it APP
/ gu1 los q or e,x-
coed 5000 shares of stock. Such sales
were confined, of course to the American
properties which are active in London.
Since there was danger Of a failure
OF the bear plot through this adequate
agency alone, even with London a pres
sent source of financial anxiety, plans
were laid TO supplement the attack
through London quotations by pushing
up the rate of money here. Houses that
handle foreign loans became tools in this
scheme. They called loans rapidly at the
opening of business. Money jumped from
2 per cent. to per cent. at once. The
combined influences of London quota
10000 shares of stock in the first hour.
Money advanced by leaps. The lenders
apparently had been frightened, and re-
fused to put it out again. An excited
o'clock the rate touched 90 per cent.
N eanwhile the banks and trust COM
panies had been doing all they could to
ease the situation. Only one bank called
all its loans. The others extended every
accommodation to borrowers They were
forced TO ask for increased collateral pro-
lection, but that worked no hardship,
nor did 1t contribute in the slightest TO
the money scare. The sudden withdrawal
of s5,7OOOO0 of loans by foreign houses,
including Canadian banking agencies, did
that 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 Central Trust Companies led
in these offers of relief. The Central
Trust Company put $l,5OO,O0O into the
market, which eased rates from 80 to
per cent. in half an hour. Toward the
close of business a recurrence OF the
money furry advanced rates again to 60
per cent
There was much indignant comment
among bankers that the assertion of its
rights by this government should have
massed foreign capital, which has en-
joyed favor and profits here, in a bear at
tack on the security market. 1t seemed
inevitable that If these tactics were fol-
lowed, and If the raid were to continue
large exports of gold would be necessary
in the near future.
Recognizing the source of attack and
its effects, immediate and possible, with
the bears and foreigners in utilization, the
spirits of friendliness shown by the local
banks toward their foreign competitors
suffered some strain. 1t was said at one
taken from, the subtreasury might have
been much larger than $3,400 900, but that
legal tenders were available only in notes
of small denomination. Gold is paid out
for legal tenders, but the legal tenders
must be counted at the subtreasury before
the metal is passed over. the counter.
Notes of large denomination are used
ordiartly in exchange. The banks SEEM
ed to have only small notes to-day and
the physical task of counting 100000 in
small notes furnishes work for several
days. Mischievous schemes for extra
gold were believed to have been checked
by this device.
Talk was heard of a meeting of bank
officers to plan measures of relief. 1t did
not appear. that anything could be done
just now, but 1t led to discussion as to
the advisahility of ,financiers banding
together to support the security market
The objection made to such a course was
that If foreigners wished to part with
American holdings there was no reason
why Americans should pay more for them
than was necessary. If gold in large vol
ume was to be drawn away, it was thought
it ought to pay for securities at
the cheapest prices. Sugges tions of unit
ed action for relief, however, seemed to
contain some promise that the local Sit
uation might be helped in some way. 1t
prices abroad would call for additional
gold next week, and possibly precipitate
a new bond issue.
There were three failures on the stock
exchange to-day and two suspensions
were announced on the consolidated ex-
change. None was of serious moment
Those on the consolidated involved only
small individual traders. All were caus-
ed by the sudden drop in the quotations
of securities.
THE stock exchange firms that went
under were Nichols, rockingham &, Co,
s. S. Sands & Co.. and Deneufvile & Co
THE consolidated brokers crowded to
the wall were Leo A. Feldman and Ben
jamin Fenton."