The San Francisco call., 1895-12-21
ENGINEERED THE RAID.
Financiers Used the Venezuelan
Controversy to Demoralize
the Market.
FAILURES AMONG THE BROKERS
The Panic Temporarily Checked by the
Tenders of Bank and Trust
Companies.

NEW YORK. NY, Dec. 2o.-The Times
tomorrow will print the following account
of the day in Wall street:
Collusion between bear operators in
stocks and foreign trading houses smashed
prices in Wall street to-day, ran money
rates up to so per cent, Withdrew s., 100000
from the gold reserve and caused several
financial failures. Declines in stocks af-
fected the entire trading list. Losses ran
as high as 1O points at one time in several
substantial securities. The bond market
sympathized actively with stocks.
Good temper and moderation by the
banks and the influence of the Central
Trust Company in placing 81 500, 900 in the
market in the last hour of trading to be
loaned at normal rates, turned the down.
ward course of prices. Recovery wos
rapid and general, but at the end of the
day quotations showed material net losses.
The shock OF the attack left the market
wavering and feverish.
Accustomed as is the financial district to
wicked work in the security market to-
days performance surpassed in malicious
design and manipuative cunning and
boldness anything ever before attempted.
Its success was complete, and that it
should have been so was amazing, since
those we'll informed knew how it had been
brought about.
The men who engineered the raid used
the Venezuelan incident as pretext in
the market. They had been in high
feather since the Presidents message came
out and issued from the beginning the
| oil 1f
results.
How far they may have been influential
| in inducing their allies in Europe to bring
about condition by Wednesday which
assured the export of gold by to-morrow's
steamer has not been examined. Finan-
cial timidity had not been reused by yes-
terday to the point of slaughter in prices.
That move was reserved for special pro-
pelling agency which the bears furnished.
The worst apprehensions had not ex-
pressed fear of anything approaching to-
| days happenings in intensity or scope.
Since it is afternoon in London when
| business opens here, operators usually
read London quotations the first thing in
the morning. They are always interesting
and sometimes influential. In the last few
days special significance has attached to
| them because of rumors of English inten-
tions regarding American securities. This
furnished q groundwork for bear maneu-
vers. Casual observers might have sup
posed that London quotations reflected a
wholesale overthrow of American securi-
ties. From the best available sources Of
information it appeared that London sales
did not exceed sc, 900 shares of stock. Such
sales were confined, of course, to 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 financial anxiety, plans we're laid to
supplement attack through London quota
tions 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 2 per cent to 7 per cent at
once. The combined influences of London
quotations and high money caused the sale
OF 100000 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 de-
mand for it resulted and before 2 o'clock
the rate touched 80 per cent.
Meanwhile 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 it contribute in the slightest to the
money scare. The sudden withdrawal of
SS 000 00n Of Inonc hyy in
cluding Canadian banking agencies, did
that business, 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 4 TO per cent on good
collateral. The Gallatin and Merchants
National banks and the State, Union, At
lantic and Central Trust companies led in
these offers of relief The Central Trust
Company put $1,500, 900 into the market,
which eased rates from 80 to per cent in
half an hour. Toward the close of busi-
ness recurrence Of the money furry ad.
vanced 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 enjoyed
favor and profit here, in bear attack on
the security. 1t seemed inevitable that if
these tactics were followed, and if the raid
were to continue, large exports of gold
would be necessary i'll the near future.
Recognizing the source OF the attack
and its effects, immediate and possible,
with the bears and foreigners in affiliation,
the spirit of friendliness shown by the
local banks toward their foreign compete
tors suffered some strain.
Itwas said at one time in the day that the
amount of gold taken from the sub-treasury
might have been much larger than So, 400
coo, but that legal tenders were available
only in notes of small denomination.
Gold is paid out for legal tenders, but the