The times. [volume] (Richmond, Va.) 1890-1903, 1895-12-21
WALL. STREET PANICKY.
COLLISION BETWEEN BEARS AND
FOREIGN TRfDERs SMASH PRICES.
Over Three Million Drawn From the Gold
Rescrye by Money Rates Running Up
20 Ninety Per Cent Several Failures.

ed prices in Wall street to-day. ran money
rates rp to 80 per cent. withdrew 49,
10000 gold from the reserve, and caused
several financial failures.
Decline In stocks affected the entire
trading-Iist Losses ran as high as 10
points at one time in several substan-
t,al securities. The bond market sym
pathizcd actively with stocks.
AID OF THE BANKS.
Good temper and moderation by the
banks and the influence OF the Central
Trust Company. i'm placing 81 100000 in
the market IN the last hour OF trading. 10
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 attack left the market
wavering and feverish.
Accustomed as Is the financial district
10 wicked work In the security market.
to-day's performance surpassed IN mali
cious design and manipulative cunning
and holiness anything ever before at
tempted. Its success was complete, and
that Il should have been so was amazing,
since those well informed know how it
had been brought about
The men who engineered the raid. used
the Venezuela incident as prcteXt in
the market They had been in high
came out, and issued from the beginning
the most gloomy predictions of its imam
cisl results.
How far they may have been influential
In inducing their allies In Europe 10 bring
aboat a condition by Wednesday. which
assured the export Of gold by to-mor-
rows steamers. has not beer examined.
Financial timidity had not been reused
by yesterday 10 the point of "A slaughter
In "A
special propelling agency which the bears
furnished. The worst apprehensiOns had
not expressed fear of anything approach
ing to-day's happenings in intensity or
scope.
DIFFERENCE IN TINE.
Since II Is afternoon in London when
business opens here. operators usually
read London quotations the first thing
in the morning. They are always inter-
esting. and sometimes influential.
In the last few days special signiii-
canoe has attaoled TO them because OF
rumors of English intention regarding
American securities This furnished a
ground work for bear manouvres
Casual observers might have supposed
that yesterdays London quotations re-
nected a wholesale overthrow OF Ameri-
can securities there. From best available
sources of information il appeared that
London sales did not exceed $1,000 shares
Of stocks.
Such sales were confined. of course.
10 the few American properties which
are active in London. Since there was
danger of failure of the bear plot
through this adequate agency alone. even
with London present source of fnan-
cial anxiety. plans were laid to supple
ment attack through London quotations
by pushing up rates for money here.
Houses that handle foreign loans be-
came tools in this scheme. They called
loans rapidly at the opening of bust
ness. Money jumped from 2 per cent
10 per cent. at once. The combined
influence Of London quotations and high
money caused the sale of 10000 shares of
stock in the first hour.
TREMENDOUS BOUNDS.
Money advanced by leaps. The lend
ers had apparently been frightened. and
refused to put IL out again. An excited
demand for IL resulted. and beford
O'Clock the rate touched 80 per cent
Mean while the banks and trust COM
panies had been doing all they could TO
ease the situation. only One bank
called all It's loans. The others extend
ed every accommodation to borrowers
They were forced to ask for increased
collateral protection. but that worked no
hardship nor did it contribute in the
slightest to the money scare
The sudden withdrawal Of 100000 of
loans by foreign houses. including Cana
dian banking-agencies. did that business
and especially as that money was kept
out of the market. When the strain be-
came acute, several Of the banks ana
trust companies sent word to the loan
market that they had money to put out
at from to per cent. on good col
lateral.
The Gallatin and Merchants National
Banks. and the State Union. Atlantic.
and Union Trust Companies led i'm these
offers of relief. The Central Trust Com
pany put N.500.000 into the market. which
easod rates from 90 TO 8 per cent. in half
an hour.
Towards the close of business. recur-
renee Of the money furry advanced rates
again 10 GO per cent. There Wa much
indignant comment among bankers that
the assertion of its rights by this Gov
eminent should have massed foreign capt.
tai. which has enjoyed favor and profit
here. In bear attack on the security
market.
IL seemed inevitable that il these tao
tics were followed, and If the raid We're
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
fayors shown by the local banks toward
their foreign competitors suffered some
strain. Ii was said at one time i'm the
day that the amount OF gold taken from !
the sub-treasury might have been much |
larger than 50. 100000 but that legal-ten- |
ders were available only In notes of
small denominations. Gold Is paid out
for legal-tenders. but the legal-tenders |
must be counted al the sub-treasury be-
fore the metal is passed over the coun-
ter Notes of large denomination are |
used ordinarily In exchange.
The banks seemed TO have only small |
notes to-day. and the physical task of |
counting Sl.000,G0 IN small notes fur |
nished work for several days
Mischevious schemes for extra gold were |
believed TO have been checked by this !
device.
PLANS OF RELIEF
Talk was heard of a meeting Of bank |
officers 10 plan measures Of relief Moth |
ing came OF this because II did not APP |
pear that anything could be done just |
now. but il led TO discussion as TO the |
advisahility of financals banding together |
10 support the security market.
The objection made to such course. |
was that II foreigners wished TO part with
American holdings. there was no reason
why Americans should pay more for them
than was necessary. II gold in large
volume was 10 be drawn away. IL was
thought II ought TO pay for securities at
the cheapest prices. Suggestion OF united |
action for relief. however. seemed TO |
contain some promise that the local sit