The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1899-12-19
The New York Clearing House
Obliged to Come to the AS
sistance of Wall Street.
VIOLENT DROP IN VALUES
Stocks We're Thrown Over Without Re-
gard to Prices-It was a Ruthless Sac
rif1ce-186 Per Cent Was Paid for
Money at One Time-Money Has Been
Locked Up by Capitalists in the New
Industrial Combinations.

New York, Dec. 1S.-Panic conditions
developed on the Stock Exchange this
afternoon with the imperative need of
money developed by the violent con-
traction in values. Stocks were being
thrown over without the slightest re-
gard to the price they would bring and
at distressing sacrifice of values. No
end to the helplessness of the situation
semed in sight when in the last half
hour of the market some $4,000 900
was offered on the Stock Exchange by
the concerted action of the clearing
house banks to force the rate arbitrar-
lily down to per cent without regard
to the distracted bidding at higher
rates which was being done by other
brokers for distressed operators. The
collapse in the money rate checked the
decline and drove the bears to cover.
The recoVerieS produced by their urgent
bidding We're almost as violent as the
declines established. The losses were
by no means entirely retrieved Large
offerings Of stocks continued at the
rally and at some points of the list
making the closing exceedingly irregu-
lar and unsettled.
The excitement continued to the end
with sentiment looking forward anx-
iously for the development of another
day. The seriousness of the crisis has
called forth the best efforts Of powerful
and conservative financial interests
which are busy concerting measures to
tide over the money GifficGlties which
beset the stock market and which, by
reason of their extent and the import
ance of interest involved threaten to
affect the country's business interests
unless obstacles are opposed.
1t is considered a point gained to
have effected a cessation of the ruth
less sacrifice of values long enough for
a period of consideration over night.
For the selling of stocks had unques-
tionably reached that stage where Or
dinary considerations of prudence or
even of necessity had been thrown to
the wind and the sufferers from the
money strngency were unloading their
holdings in the true panic spirit. A
pause of few hours for consideration
is likely in itself to do much toward
rectifying such a condition.
So far as actual news was concerned
to-day there was a suspension by 1t
newly organized trust company and
by firm of bankers and brokers who
extent of some Importance. Neither
event in itself would have been suffi-
cient to precipitate crisis. But they
were supplemented with a whole crop
of wild and incoherent rumors which
spared no interest, however, long es-
tablished and hitherto free from sus-
picion 1t may have been. One would
think from the tone of some Of the
gossip that was floating about by teie-
phone, telegraph and by messenger
boys or by whispers and even by shout
ing in the lobbies of the Stock E,X-
change that the whole financial fabric
had been undermined and was about to
tumble in ruins. Yet the day closed
with the two failures above mentioned
as the sum total of disaster so far as
admitted insolvency is concerned The
reason for the widespread effect upon
the sentiment of the trust company's
suspension was that it was one of
large number of institutions recently
formed on similar lines and which
have thrived upon the multiplying of
securities. The securities of these COM
binations as class have been in dis
favor in Wall street for many weeks
past and in fact ever since the head
long imitation in their prices and SUBJ
sequent collapse last spring. The dis
favor which is attached to them, in
Wall street, has been quite indiscrimin-
ate and based upon many varying con-
ditions The principal allega tions
against them are oVercapitalization, eX-
orbitant prices paid for constituent
properties and vulnerability to exist
ing and threatened legislation against
combinations. 1t is evident in so large
a number of combinations as have been
made these allegations can scarcely ap-
ply to all alike. But the sheep have
not been separated from the goats in
n II CT 1F
tunate Of the new combinations have
been affiliated with the trust company
which closed it's doors to-day
The incident caused a feeling of dis,
trust With regard to the whole class of
industrial securities. as is sufficiently
evident from the wide breaches made
in the values of this class of securities
in the days trading. It is to be noted
also that the very heavy commitments
of capital to the trust form of enter
prise itself and it's incursions on the
banking field have aroused much dis
cussion.
1t has been obvious for many months
past that great deal of money has
been locked up by capital in these new
industrial combinations which were be-
coming burdensome to carry by reason
of the heavy demands for money in
the regular channels, the large absorp-
tion of funds by reason of the govern
ment's surplus securities and the ur-
gent need of the London money market
growing out of the Transvaal war Last
weeks threatening situation in Boston
was the outgrowth of the burden of
copper stocks. Thus it was that the
trust company failure to-day, coming
upon last weeks events in Boston
aroused the fear that the suspected
clash of securities We're on the point of
succumbing to adverse influence. In the
FFGF