The San Francisco call., 1896-08-04
Three Men in a Boat---not Counting the Dog

heavily interested, and it was thought
best to call a meeting to discuss the situa-
ton.
Those who assembled discussed the best
means for restoring confidence after the
shock which would be given to speculative
circles by the announcement of the fail
ure. 1t was the general opinion that it
would be the wisest possible move to close
the exchange for period.
The points were made that nearly the
entire business Of the Stock Exchange
for a number Of weeks had been in
Diamond Match and New York Biscuit;
that the closing of the exchange
would interfere only in the slightest
degree with general financial affairs and
that the present was particularly oppor-
tune time, owing to the fact that the set
dement's in the July account had Just
been completed and there had been as yet
comparatively little trading in the August
accounts.
The governing committee of the Stock
Exchange discussed the matter at length
and passed resolution to adjourn the
exchange at 10 O'Clock in the morning
indefinitely.
The deal, of which the failure of Moore
Bros. is the elimination, is by all odds the
most important in the history of the Chi
cago Stock Exchange. 1t began early this
year. The stock of the Diamond Match
Company had been selling about 130 for
quite time There had been no special
activity in the market. Just prior to the
Venezuelan incident the tip went out in
outside circles that there was to be some
important European developments in con-
nection with Diamond Match affairs, and
the buying of stock by strong people COM
menced.
The Venezuelan panic interfered with
the speculation and the stock dropped
during the general decline at that time to
lis. From then the rise started which is
tie most remarkable in the history of the
exchange. A strong group of speculators,
headed by ]. n. Moore and William H
Moore, began buying the stock. 1t moved
up with scarcely a halt.
In time the announcement was made
that the Diamond Match Company had
closed contract with the French Govern
ment, under which its patents and the
machines controlled by the match COM
pany were to be sold TO the French Gov
eminent for q royalty OF $10O, 900 year.
Following the announcement of the
closing of the French contract the stock
advanced with great iapidity. In the
early speculation the bulls named 200 as
an extreme figure, but as the prospect of
further arrangements in Europe appeared
much higher prices were predicted. Ne
gotiations were opened for the formation
of new company in England, which
would unite with Bryant d May, the larg-
est match producers in Great Britain, and
would give the English fielu 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
lesson to European manufacturers, show
ing them the great advantage of improved
machinery over their methods of manu-
facture.
Negotiations were opened in Austria for
the formation of a company which should
combine all the manufacturers there.
Other companies were to be organized in
Belgium and Italy. Calculations showing
enormous profits to accrue made prices
that had at first looked extravagant seem
cheap. The shrewdest men in Chicago be-
lieved in the property and the stock sold
up as high as 24S.
From that point there was rapid de-
cline, carrying it down to 200. The
Moores went through the break without
the slightest difficulty, and it was believed
generally that they had been glad to see
the decline that more stock might be ac-
cumulated. A great part of the capital
with which the deal had been carried on
had been raised in New York and New
England Local banking institutions are
only moderately interested in the affair.
Difficulty was experienced, it is said,
owing to the general loss of confidence in
renewing some OF these Eastern loans.
Treasury Gold Reserve.
WASHINGTON, D. c., Aug. 3.-The
traasvr,y ,rIa resarva az +ho oro.o r -;