The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1896-08-08
Largely Affected by Diamond
Match Collapse
THE SHOCK TO CONFIDENCE
Reflected In a Drop of the Railroad
Securities
There Has Been q Marked Increase In Tier
chandise Exports and Cereals are
Moving Very Freely
a associated Press Special Wire.

The sensational collapse of the specu-
lators who controlled Diamond Mattel
and New York Biscuit stocks and had
hoisted them to fancy prices. with the
consequent closing of the Chicago stock
exchange for a period yet indefinite
though followed by remarkably few fail
ures. brings a sudden change in mon
etary conditions throughout the coun-
try. At least a month earlier than had
been expected Chicago has drawn heav-
lily upon Illinois bank balances. and
Withdrawals of other western funds may
naturally result.
Europe was also moved to sell Ameri
can stocks rather freely. so that the
average of sixty most active railroad
stocks fell about 50 is per share. and the
average of trust stocks fell about S1.SS.
The instant cooperation of the money
interests at Chicago to restrict the dis
turbance deserves praise and did much
good, but it is not possible to avoid some
shock to public confidence, and quick
tightening of eastern money markets
has already shut off commercial loans
almost entirely. The collapse also in
creased the caution of bankers and 9TH
err leaders regarding loans on securities
of similar character.
It is important that the increase of
merchandise exports of 100000. or Il per
cent. over last year for the week, and the
decrease of imports of 500, 900, or ~ per
cent. still continue to limit the sum pay
able abroad In five weeks the increase
of exports has been S5,400000, or Is per
cent. and the decrease of imports $780,
600, or Is per cent, which help to balance
accounts. The movement of wheat is
again large. Atlantic exports being 1.116.-
900 bushels for the week, flour included,
against 753, 300 last year, and since July
l. $685. 500 bushels, against 4,72S,9oo
bushels last year. Conflicting crop re-
ports are as numerous and noisy as
ever, but the more reliable mark up
winter wheat at 500 900, 900 bushels. and
the movement tends to sustain such es-
Inmates. for since July l western re-
CENTS have been 17.S33,S00 bushels,
against $3.50, 900 last year. 1t is not easy
to believe that, with prices 10 cents low
er than year ago farmers have mar
keted from smaller crop 80 per cent
more wheat.
Corn is also moving rapidly, with west
ern receipts 4.S73,000 bushels, against
1661 900 last year
Labor is more disturbed than usual.
The great strike of garment-workers
here has much extended; the strike at
Cleveland has broken out again and in
wolves several other branches of labor;
the furnace men of the Shenandoah
valley resist reduction to the wages of
May, 1895, though the Mahoning valley
workers do not; the iron works through
out the country are striving to cut down
the cost, in order to keep in operation;
the iron mines of the Gogebic range are
stopping; the suspension of cotton mills
has become more general, and over
1000 900 spindles are said to be idle at
Fall River alone, and probably three
eighths or more of the entire producing
capacity In the country the rubber
works have mostly stopped and num-
Der of wooden mills also. Evidently
both the working force and their wages
have been redl ced.
The iron market grows less democrat
lied in tone, because all the associations
decided to maintain prices for this
month, but the markets are not strong
er in volume of orders or purchases.
Pressure to sell, even at concessions, is
the prevailing rule and prices are al
most nominal.
Minor metals ar@ generally weak. but
prices of coke and coal are held without
variation.
Curtailment of production in cottons
does not bring a stronger market and
a few quotations are reduced.
Sales of light weight woolens are dis
appointing and mainly of cheap AIDES
and in some cases prices are again re-
duced. Sales of wool for the week We're
. 746. 400 pounds against 6,259,300 vast
year and 9,271, 700 in 1892.
Failures for the week have been 240 in
the United States against 227 last year,
and 50 in Canada, against 43 last year.
BRADSTREET' REVIEW.
Bradstreets Review of the New York
stock market will say: During the past
week speculation in the New York mar
ket has shown renewed bearish tenden-
cies. eliminating on Friday in a severe
liquidation and general decentralization
of prices. The failure of prominent Chi
cago operators and the collapse of a To-
cal DOOM, Win llit tIoSll4t1 "a Ntit HtpN ~
exchange there had no immediate con-
nection with Wall street, nevertheless
the incident created fears that the injury
might be more widespread than is said
to be the case and it may be observed
indeed, that the hardening Of the call
loan market here is attributed mainly to
complications created by the Chicago
troubles At the close of the week, how
ever. the rise of call loans to and per
cent, and the difficulty in obtaining
time loans, We're effective in creating Ii
ouidation. The disturbance at Chicago.
the expectation of higher money. the
political situation and the fact that the
railroad earnings are becoming decided
ly unsatisfactory, Were all used by IT,
bear party with more or less effect upon
prices. The case, however, with which
bear interests have produced an impress
sion upon the share list is mainly due
to the fact that the most influential peo-
pie in the street are not giving any ap-
parent protection to their stock specula-
ton, and that the public is taking no
part whatever in the market. the de-
clines in prices attracting no buying
whatever, except that resulting from
the covering of short contracts and the
purchases for London account The lat
ter market, however. has not exhibited