The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-12-20
PANIC CONDITIONS PASS.
BANKS BREAK THE MONEY RATE AND
STOCKS ADVANCE VIOLENTLY.

To Mako tho Treasury Relief PInn Effective
the Banks Borrow Bonds From Thoiv
Friends tho Trust Companies or some
of Them-ReIations Not Cordial with All.
Stocks recovered violently yesterday. The
Treasury's arrangement to increase the
amount OF internal revenue receipts to BIO held
by Governmen depository bar ks had an exc
ccllent effect upon sentiment among borrow
era OF money. which effect was improved when
the banks decided to borrow Governments
bonds on which to carry the increased deposits
OF Government money. Furthermore, the
Clearing House Committee offered to lend
S10.00O.o0o more on the Stock Exchange To
break the call money rates down 10 reasons
bic figure. No further failures were an.
nounced and the PANIC conditions OF Monday
disappeared.
Higher quotations from London for the
internationally listed American railway shares
had a good effect at tho opening. London
houses traded on both sides OF the market bus
on balance. bought about $4,000 shares OF
various stocks. There were wide and FREE
quent fluctuations in stock prices in
the early trading and few Issues got
back to prices close to the lowest OF Nom
day. When It became apparent. however.
In the afternoon that no further weak
spots were to be uncovered locally and the cali
money rate dropped under . per cent. the mar.
ket. which had been gradually strengthening.
became buoyant the advances for time be-
ing almost as rapid as the declines OF Monday.
The closing was at net advances OF from 2 to
more than q points.
The Clearing House Committee. with other
prominent bank officers. met at the Clearing
House at IL o'clock. Word was brought BY
Howard p. rockingham that the first call loan
OF the day had baen mada at par cant The
bank officers decided to put 1t the hands OF Fred-
erick ID. Tappen. President OF the Gallatln Ma
tional Bank $40. 600. 600 more. with instructions
70 lend II on such terms as he saw 1t, Under
s 6S aHthornatSn Mr.
lenders offered IarFe amounts Of money and
BSsf Trough H %aq TarncT lent at G per
said to BE- I part H " doySrnmcns dsposis
Henry Clcws L Co. loaned Si.4O0. 900 ut Is per-
cent cary In tho day and later loaned S75O.OOo
AT tho close Of the meeting OF the Clearing
House Committee Mr.. Tappsn made this state
A syndicate has been formed. the members
OF which have subscribed SlO0OO.OOO for tho
money market. Tho money is to be loaned at
the market rate. The banks composing tho
National Union. GailaLln National. Chase Ma
tional. importers and Traders' National. Corn
HsGov0F NaSna First Natoaa fBs sn2
America. Manhattan Gni Chemical National.
G9tn Tf 9n said or dSne in regard e ssgnE
be done. for there Is no necessity for such ac-
ton. There Is plenty OF money here"
>, The committee Adopted the following reso-
'Rssolred. That the Clearing House Conn
York to lend their United States bonds TO the
Clearing House Committee, or to the banks
OF internal revenue receipts in the banks. and
In ms ma, manner rr.ieving the money market"
q good supply OF covernment bonds. which
ont 6ans 9csr ot TED ysS,e n A. aggre
Banks have practically none Of their own
available. having already placed them with the
Treasury nGansL the issue Of circTation and
against Government deposits. The effect OF
the resolution was seen in the receipt at the
ub-TreGsury before business closed of
SU.ODO.0UO IN Government bonds turned in by
six banks to secure Goyernmsnt deposits.
Assistant Treasurer Conrad y. Jordan. as the
par,ment at Washington.
Some Of the officers Of tho trust companies
were no; inclined 70 look fayorab!y upon the
rrS,olnt!on q the S!earinG House Com mittee;
sts,ss Tru: S0 Gomnan S's sSd Oh '"' 'n'''a
The ranks had hest mind their own BUSH
ness: there Is plenty OF worS Tor then to do
best leave the trust company mon to manage
Their own eISineSSs: ! haven't RECEIVED any
II ther; = anything OF the kind they had best
An officer OF another trust company which has
no Clearing House agent also criticised the ac-
ton OF the Clearing House Committee. Mr.
w"r ca 10 wMG1c sn Wow thesI the Criticisms
stances, We thought Il proper enough 70 call
lend any money. The bank; ionpd the s.tua-
ton such that we were rushing into panic.
We hal to act at once anil W. agreed to loan n
block OF money on the Stock Exchange to break
Another member OF the Clearing House Com
miit-e said: II was necessary to relieve tho
loan the money that we did on tho exchange.
don't see that there IL any impropriety In re-
HHsStinG the trust companies to assist In re-:
do,, y OF permit OF IT, oi course they should NOS
doit. but know Of none; understand the res
general among the larger trust companies and
thar some some Of a." smaller eonpauies have also
4 step looking to relief OF the money market
simii ar to that which has already been taken
payable In January has been taken by tho
International Paper Company. Checks for tho
!. rer cent; quarterly, dividend on tho pre-
stockholders. Any stocsholdcr OF tho Com-
pa,ny cen 60 70 The Company's oflce ana rs-
Regarding the situation William Rockefeller
said yesterday:
thought. however. for several months that in
view of the money situation stocks were sell-
point where. in my Judgment. they can be
bought with comparative safety. ! believe the
important LIQUIDATION Is over. We arc likely OF
course to have more Or less fCvorish market
for while. but after tho turn OF tho year there
promises TO DO ample relief for the money
market"
The clerks Of the Stock Exchange Clearing
House were AT work from ! 10 O'Clock Monday
ing upon tho coarings resulting from Mondays
enormous dealing. Room Tor them hal been
engaged at the N:"Tcns House. whore they
won't ~ sleep nftor completing their work.
Tn" Clearing House figures Indicated husi-
moss iAr In excess Of the total compiled from
the ticker returns,
JAMES X. KEESE TO TAKE 4 REST.