The Worcester spy. [volume] (Worcester, Mass.) 1898-1904, 1899-04-08
A BLACK FRIDAY. F."
Break in Industrials
Scares Wall Street
Brokers.
MONEY MARKET FIRM.
Banks Refused to Take
Specialties as Col
lateral.

New York, April Another "Black
Friday" That is what the stock ex-
change experienced today. OF course
it was but feeble reflection of the
memorable day when Jay Gould and
his coterie cornered gold, but it was
bad enough to suit the average opera
tor. Coming after the phenomenally
buoyant market of the past few weeks,
it was a marked occurrence.
Every one of the industrials met
with bad breaks. In fact, the
whole difficulty was occasioned by
over-speculation in industrial special
ties. The refusal of banks to make
loans on industrial stock was the di-
rect cause. At least one large firm,
that of Dimock & Co., was forced into
insolvency. The most remarkable
feature of the whole transaction today
was the fact that the money market
was practically unaffected by the
break
IOhftJ oCilSetliOlAiA 5lOIh mai net
was remarkable for the great declines
that took place in practically all the
specialties. Losses of Importance re-
manned at the end. although the clos
ing was strong. The potential influ-
ence behind today's plunge in prices
was the money market, where discrim-
ination was exercised against the in
dustrial securities. The inability of
some large firms to renew loans on
has CHI Jr4 Il
essary to sacrifice stock at the best
prices obtainable.
Call rates for money ranged from 5
to Is per cent, but left off at the lower
figure. The forced sales by many
commission houses lent renewed cour-
age to the bears, who constantly found
new spots of weakness. A number
of money lenders on the floor of the
exchange refused to pay any attention
to the bids made by some brokers who
were known to be trading heavily in the
industrials.
The calling in of some loans helped
to arouse alarm and induced general
selling. The weakness of many stand
ard stocks and bonds was due to no
other cause ascertainable than the ne
cessity of protecting stocks of less GER
tain value, or to secure funds to buy
the shares which had been most de-
pressed in the hope Of profit on the re-
bound.
The attitude of the banks toward in
dustrials met different views, praise
from some quarters for their conserva-
tism. and censure in others whose loss
es were enormous. London, which of
late has been an unimportant factor in
the dealings, bought upwards of So
900 shares on the decline here While
the so-called bull leaders appeared ap-
athletic on the downward rush of quo
tations, heavy scale buying appeared
carrying with it the conviction that
the violence of the movement could
not last.
This support gradually checked the
fierce onslaught on prices and recover
les ensued. Much thought was given tc
the probable aspect of tomorrow's bank
statement with widely divergent prog
nostications.
An element of confidence in the rally
was found in the offering of several
million dollars in the loan crowd by an
interest lately very prominent among
the bull leaders. A number Of commits
sion houses when prices were not far
from the lowest freely advised purchas-
es where the stock could be taken out
right or on very substantial margins
Buying of this character had much to
do with dispelling the scare, the market
LOT SUIue tlILle having DOFuereu on the
panicky state. Many interests which
had been out of the street for a long
time thought the time opportune to
purchase as it appeared to be one Of
the bargain days which have developed
at various times of recent years. This
buying gave a considerable momentum
to the afternoon rally which embraced
everything on the list and resulted in
reducing the net losses to a very small
ing slight advances in others.
An idea of the wide movement which
occurred either way is shown by the
fact that although Brooklyn Transit
broke 153z, the net loss is only 81. Met
ropolitan dipped 16 and closed 81 off
Manhattan yielded and loses only "a.
Sugar sagged 1874 but only shows 214
to the bad. Air brake dropped Is, bu.
only figures for ~ net loss. American
Tobacco eased 10 points but figured for
only points on the day. National Steel
dropped 1914 and leaves off 31a down.
Peoples Gas sagged 1914 but rallied
strongly and is down only 3%.
Among other stocks the changes were
very material on the down grade and
subsequent recovery. Bond prices ma
turally showed a yielding tendency to-
day with transactions of 100000 u.
S. new As advanced 32s and the old IS
coupon x in the bid price, while the 5s
reacted 4.
Sentiment regarding the financial sit
uation became more cheerful with the
lapse of time and although there was no
pressing demand for securities prices
moved steadily upwards. Commission
house advices to their clients were on
conservative lines, the sensational noon
break being an object lesson of the
dangers of pyramiding.
The failure of the firm of Dimock and
Co. stock brokers, was announced on
the stock exchange today. One of the
firm said the assignment was not due
TO the present market but to old COM
pIications, on account of which it was
thought best to close. The firm was
composed of J. A. Dimock and r. w. E.
Swinton.
1t is announced that the liabilities are
under 100000 and the assets about
enough to met them. The firm expects
to resume in a few DAYS