The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1896-08-05
CHICAGO STOCK EXCHANGE CLOSED
TO PREVENT A PANIC,
TWO BIC BUBBLES BURST.
Hottom Drops out of the Diamond Match
and New York biscuit speculation
biggest Deal OF the Kind in His
tory MANY million, Lost
Moore Brothers the
Principal Victims

Moore Bros. have tailed. Inc great
est speculation ever known IN Chicago
has illuminated in the failure OF the
people who were behind the deal
The Chicago stock exchange adj
journed at 10 o'clock this morning for
an indefinite period. This action was
decided upon at a meeting held last
evening at which were present the
erning committee and a number of
prominent capitalists
This meeting was assembled inform
ally after the announcement was
made by James H. Moore that margin
calls no longer could be met The
announcement was made to few Of
the men most heavily interested and
IL was thought best TO call meeting
to discuss the situation. Those who
assembled discussed the best means
for restoring confidence after the
shock which would be given TO specu-
lative circles by the announcement OF
the failure. 1t was the opinion that
il would be the wisest possible move
TO close the stock exchange for u
period.
The points were mate that nearly
the entire business at tle Stock eX-
change for a number OF weeks has
been in Diamond Match and New York
Biscuit; that the closing of the eX-
change would interfere only in the
slightest degree with general fnan-
cial affairs, and that the present was
particularly opportune time, owing
to the fact that the settlements in the
July account had just been completed
and there had been as yet compara-
lively little trading in the August
accounts.
So far as the banks arc concerned
they are indifferent personally as TO
whether the exchange should be closed
or not The stocks held by them are
margined to point which leaves
them secure in any event.
The speculative deal OF which the
failure is the elimination is by ali
odds the most important In the history
Of Chicago stock exchange affairs 1t
began early in this year. The stock
of the Diamond Match Company had
been selling along l30 for quite time
and there mad been no special activity
in the market. just prior TO the Ven
ezuela incident, the tip had got out IN
! inside circles that there were TO be
some important European develop
ments IN connection with Diamond
| Match affairs aud the buying of the
| stocks commenced by strong people.
| The Venezuelan panic interfered with
! the speculation and the stock dropped
during the general decline at that
time to ll5. From there the rise
| started which Is the most remarka BILE
in the history of the exchange.
A strong group of spectators,
| headed by John II Moore and Will
] 10.
stock H. moved up with scarcely a
halt The bears occasionally endeav-
ored to interfere with the rise, bat
! they each time found that there was
! both speculative genius and financial
strength behind the Market which
was unlike any thing n local specula-
/ tive affairs The rise went on for a
considerable time before the general
! public had any intimation of what
was really behind the advance.
In time came the announcement
that the Diamond Match company had
closed a contract with the French gov
ernment under which the patents and
the machinery controlled by the
match company were u be sold to the
! French government for royalty of
/ 100000 a year. President Barber
and Director George u. smith were in
Europe carrying on the negotiations.
Following the announcement of the
closing of the French contract the
stock advanced with great rapidity
In the early speculation the bulls had
named 200 as an extreme figure, but
as the prospects of further profitab BILE
arrangements in Europe appeared,
/ much higher prices were predicted
Negotiations wero opened for the
. fnt Of uf,,r
land, which would unite with Bryant
& May, the largest match producers
in Great Britain, and would give to
the English field the advantage of the
labor saving American machinery A
factory was equipped in Liverpool
which was owned by the Diamond
Match Company, and which served as
an object lession to European manu-
faeturers, showing them the great
advantage of the improved machinery
| over their methods of manufacturing.
Negotiations were also opened IN
! Australia for the formation OF q com
pany which should combine all the
manufacturing interests there Other
companies were 20 be organized IN
Belgium aud Italy. Calculations
showing enormous profits 70 accrue
made prices that had at first looked
eXtrayagant seem cheap. The stock
sold up as high as cas-
When the decline in stock markets
generally came, following the Demo
cratic convention, the stock was sell
ing at 2ei The values of other Sc
curities tumbled day after day bul
Match was held steadily without 50
much as fractional decline. Tn,
Moores bought the stock with con
ddeno6 that inspired con fdence il
others. The people who had the bes
information about the company
prospects seemed TO feel absolutely
certain of the value OF the security
. and prices were held through all The
sharp fluctuations in other stocks
fluctuations which carried West Chi
cago 10 the lowest point in its history
) and marked startling declines IN al
other securities
Yesterday the stock was held Will
hardly q wayer at 322 but there wa
an outpouring of long stock which lee
the keen observer OF the mashet r.
Fear that the load might become toe
/ heavy. aud the events later In ths
afternoon proved that those fears were
correct
The deaf Ia Diamond Match wa'
only part of this great speculative op
GRAFTON. The Moore Bros, had organ
lied the New York Biscuit company
several years ago. after the first grea
success OF the Diamond Match com
A u.