The herald., 1895-12-24
Money, Stock, Bond and Produce
Quotations
WALL STREET SPECULATION
The Clearing House Association Stems
the Tide of Panic
Wholesome Contrast to the Conditions
Prevailing Since Friday

NEW YORK, Dec. 23.-The all-important
consideration affecting the stock market
today was the decision arrived at by the
clearing house committee at a meeting on
Sunday a1&he house of President Tappan
of the Gallatin National bank and cabled
at midnight to London, to recommend that
tho issue of clearing house loan certificates
be made at once if necessary There is ex-
cellent authority for the belief that this
timely action turned the sentiment in Lon
don to tho bull side of the securities and
incidentally stemmed the semi-panic
here.
committee is the same as it was in 1898.
1t consists of President F. d. Tappan,
chairman, Gallatin National; ]. Edward
Simmons, Fourth National; H. W. Cam
non, Chase National; Perkins, Importers
& Traders: Williams. Chemical; and
Nash, Corn Exchange.
The certificates will be issued at ger
cent and a commission of l-16 per cent.
No applications for certificates had been
received from any OF the banks. The
scheme of clearing house certificates
which originated in the panic of 1878 and
was adopted In he panics of 1884, 1890
and 1893 is simply = plan for union be-
dividuai bank needing the certificates puts
up abundant collateral while the certifi-
Gates themselves are the obligations of the
entire association, making them uhques-
ioned security. This combination pre-
vents the weaker banks from bens pressed
and in turn enables them to deal justly
with their borrowers in panicky market.
The scheme, however, does not protect or
render assistance to banks that are set
ually insolvent. Loan certificates will be
issued up to rs per cent of the value of the
securities. Heretofore the clearing house
certificates, and the complaint was made
that the evil had been wrought before the
remedial action was taken. The prompt
ness of the present action has stimulated
the rally in the market and has had great
weight in influencing revival of purchases
of our securities.
The very disprcportionate engagements
of gold for shipment to Europe on Wednes-
day to the previous large estimates were
also attributed to this influence The days
operations exhibited good and whole
some contrast to the panic. Of Friday and
Saturday. The volume of business was
we'll distributed, but the dealings shrunk
to an aggregate of about $4,000 shares
below Fridays grand total. The main in
terest before the opening here logically
bentered in London prices for our seclri-
ties, and as tho cables recorded advances
. good rally in the local market were con-
fdently made. 1t 10 also known that large
buying orders had been received for for.
eign account to be executed in
this market. Accordingly, amid consider
able excitement, the initial prices were
first few minutes ranging up to 8 per cent
in New Jersey Central. Tho rise had been
90 sudden as to prevent the fulflllment Of
many of the London orders, and after the
quarter of an hour realizing sales checked
the improvement, sugar sustaining loss
of 2X and Western Union 2sS per cent.
The reaction was short lived, but the sub
sequent dealings were irregular. The mar
ket again took decided turn upward at l
o'clock, feature being the execution of
an unusually large amount of small invest
ment orders for cash purchases. This was
also, it will be recalled, a potent factor in
ending the 1898 panic. In this movement
the best prices of the day were made as
rule. Among the gains 1T the top figures
we're: Colorado fuel, Az; sugar, 4;
Northwestern, II. Covering of shorts
was large on the general rally, and
light engagements of gold, amounting to
only 81, 900, 900. 1t had been announced
that the assay Office would be closed at
noon tomorrow and this encouraged the
sxpec alton that the exports would be
limited to that sum. Late in the day,
and thus full day will be allowed to
would be shippers. The call money mar
ket was erratic and as high as rs per cent
was paid on q moderate line # money.
Successfully lower figures were quoted
eventually and money was offered freely at
A per cent in the late dealings and closed
at per ent. The successful completion of
the enormus clearings of Saturday and
Friday was without financial embarrass-
ment.
Only a single failure, and that a small
one, was announced on the New York
stock exchange. An equally unimportant
suspension occurred upon the consolidated
exchange. The opinion that an issue of
gold bonds is imminent and probably be-
fore the present week, 10 general in bank
ing circles. The market left off strong
close to the best price today. The specu-
lating in bonds was again of large propor-
tions, the transactions aegresatinR 81 ,52l,-
600. The speculative issues were in good
demand and only scored material ad-
vances. Tho market was governed by the
influences noted in the review of the share
speculation. Some of the less ective mort
cages, however, sustained sharp declines.
Union Pacific, Denver & Rio Grande,
Northern Pacific collateral trusts skies and
Atchison seconds declined 2M per cent.
Texas & Pacific first IN, Texas & Pacific
seconds, Atchison fours trusts receipts ~,
and Chicago Northern Pacific first trust
receipts l n. Government bonds receded
sharply on the probability of q new issue
impending. The recessions amounted to
l to ! n.