The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-12-19
HONEY At FABULOUS RATES
BORROWERS WE'RE DENIED AC-
COMMODATIONS SAVE AT
GREAT SACRIFICE
NDUsTRIALS SUFFERED MOST
DROP OF WILD AND INCOHERENT
RUMORS ONLY ADDED FUEL
TO THE EXCITEMENT
NO STOCK ABOVE SUSPICION

High-Grade Securities Did Not, How
ever, Escape the General Decline
Clearing House Came to the
Rescue in Time to Prevent More
Serious ResuIts-TempOrary Con-
cessiOns Will BE Made.
NEW YORK, Dec 18.-Panic conditions
developed on the stock exchange this aft
ernoon, with the imperative need of
money developed by the violent contrac-
tion IN value. Stocks were being thrown
over without the slightest regard to the
price they would bring, and at distressing
sacrifice of values. No end to the help
lessness of the situation seemed in sight
when, in the last half-hour Of the market,
scme s1O,O0O,O00 was offered on the stock
exchange by the concerted action of the
clearing house banks to force the rate
down to per cent. without regard to
the restricted 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 were al
most as violent as the declines had been,
retrieved. Large offerings of stocks came
at the rally, and at some points of the
list prices broke anew before the close,
making the close exceedingly irregular
and unsettled. The excitement continued
to the end, with sentiment looking for
ward anxiously for the developments Of
another day.
The seriousness of the crisis has called
forth the best efforts of powerful and
conservative financial interests, who are
busy concerting measures to tide over
the money difficulties which beset the
stock market and which, by reason Of
their extent and the large interests in
volved, threaten to affect the countrys
business interests, unless obstacles are
opposed.
1t is considered a point gained to have
effected a cessation of the ruthless sacri-
fee Of values long enough for period of
consideration over night. For the selling
of stock had unquestionably reached the
stage where ordinary consideration of
prudence, or even of necessity, had been
thrown to the wind and the sufferers
from the money stringency were unload
Ing their holdings in the true panic spirit
A pause Of a few hours for consideration
Is likely in itself to do much towards rec
hfying such a condition
EFFECT OF FAILURES.
So far as actual news was concerned to-
aay there was a suspension by a newly
organized trust company and by a firm of
bankers and brokers, who have figured as
traders in stock to an extent of some i'm
pOrtance. Neither event in itself would
have been sufficient to precipitate a crisis.
But they were supplemented with a whole
crop Of wild and incoherent rumors,
which spared no interest, however power
full, long-esta bished and hitherto free
from suspicion 1t may have been. One
would think from the tone of some of the
gossip that was floating about by tele-
phone, telegraph and by messenger boy,
Or by whispers, and even by shoutings in
the Hobbies of the stock exchange that
the whole financial fabric had been un-
deImined, 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
was concerned.
The reason for the widespread effect
upon sentiment Of the trust company's
suspension was that 1t was one of a large
number of institutions recently formed on
similar lines, and which have thrived
upon the multiplying Of securities in
cident to the industrial combinat tions
which have been a feature of the past
tions, as a class, have been in disfavor
in Wall street for many weeks past, and
in fact ever since the headlong imitation
In the prices and subsequent collapse last
spring. The disfavor which is attached
to them in Wall street was quite indis-
criminate, and based upon many varying
conditions. The chief allegations against
them are capitalization, eXorbitant
prices paid for combined properties and
threatened and existing legislation
against combinations.
NO DISTINCTION MADE.
It is evident that with so large q. num-
Der Of combinations that have been made
these allegations can scarcely apply to all
alike. But the sheep were not separated
from the goats in Wall street and some
of the least fortunate of the new COM
blnations have been affiliated with the
trust company that closed its doors to-
day. The incident caused a wave of dis
trust with regard to the whole class of
industrial securities, as is sufficiently evil
dent from the wide breaches made in the
values Of this class of securities in the
days trading. 1t is to be noted also that
very heavy commitments of capital to
the trust form Of enterprise itself and Its
ncUrsion on the banking field has aroused
much discussion.
1t has been obvious for many months
past that a great deal of money had
been locked up by capitalists in the new
industrial combinations which are be-
coming burdensome to carry, by reason
OF the heavy demand for money in the
regular channels, the large absorption of
funds by reason of the governments S
surplus revenues, and the urgent need of
the London money market growing out
of the Transvaal war. Last week s
threatening situation in Boston was the
outgrowth of the burden of copper
stocks. Thus 1t was that the trust com
pany failure today, coming upon last
weeks events in Boston, aroused the
fear that the suspected class of securi-
ties were on the point of succumbinz- to
adverse influences. II the effort to pro-
tect these securities others were also
involved. including some of the most