The San Francisco call., 1899-12-20
WALL STREET BEARS
SCURRY TO COVER
New York Banks Stay the Panic
on Change by UnIOOsing
a Golden Stream,

NEW YORK. Dec. l9-T-here was a com
p.eie. revolution of sentiment IN Wall
street to-day. and the latter part OF the
session 90 the Stock Exchange witnessed
something llle panic among the bears,
WHO were making frantic efforts 10 Sc
cure stocks 10 cover short contracts. and
bidding prices up on themselves. The
professional traders took the long side OF
The market and bid up prices 10 take the
market away from the bears. Many oD-
orators who had ruthiessly sacrificed their
holdings in the pandemonium OF yester-
Gay were also eager buyers. IN the hope
~ retrieving losses. Besides these ele-
ments there was a large contingent OF
hargain-huuters. made up OF people with
ready money looking for investment, and
who buy outright - hold.
some such revulsiOn of feeling was
natural consequence OF the violent decline
~ yesterday, which overran itself. The
issue OF the speculative conflict was by
% means certain until about midway OF
The session, ana yesterdays tide OF disas-
ter was not stemmed without titanic eNer-
tous on The part ~ the most powerful
financial interests in the country acting IN
concert. Millions 81 dollars ia money were
forthcoming Tor The extension of credits
90 buyers of securities. The clearing
mouse banks supplemented their yester-
days contribution of SlO.005000 by another
u the same amount 20 be loaned al the
market rate. The announced determine
Increase Government deposits IN deposi-
tory banks gave promise OF relief from
t-c start and funds estimated AT S,moOn
became available from this source before
Under the Influence Of this abundance
NcsferlaF.s panic rates Tor money We're
at no time approached. but The oemand
JOY loans made inroaus on the supply
with seemingly Unsuitable appetite. The
rate went iO p per cent. but steadily de-
cIined from that point under the offerings
FnH H.Htsf y
Gown to IS Icr cent. and IN the late after
cent.
AS soon as the strngency relaxed Il be-
came manifest that the pressure Of
liquidation was released, and the market
fe4 into calm that seemed profound by
contrast with the constant hurly-burly
since yeste erday morning.
When The money rate fell 10 an easy
basis, prices BEGAN 20 rebound and some
sensational reCOEeries were shown es-
Tecially in the mercurial specialties. The
advances We're so large as TO invite con-
siderable prOht-takng by the traders in
Lnuen strong until the close, which
showed substantial net gains all through
The list.
The carly hours OF the trading witness
e4 very heavy liquidation in continuance
or yesterdays process Of recuperation.
hut there was n0 approach 10 the panic
conditions OF yesterday al any time. The
extensive and elaborate preparations
made 20 meet the crisis were evident at
the opening and prices were opened AT
large advances all through the list The
result WAS helped boy the higher quota
lions sent over from London. where the
stock exchange had false rumor OF a
partial rerrleYal OF General Butler Of his
recent disaster. The high prices for
Americans in the London market We're
doubtless due In part 10 manipulation or
ders cabled from this side. IN furtherance
az The general plan 20 sustain and pro-
rect the market The opening advance
l.f Ifa Cd
sales. which promptly drove down prices
ir spite ~ The utmost Efforts 10 sustain
Them Not "a few stocks showed evi-
deuces ~ positive weakness and the first
TWO hours ~ trading were given up 10
furious activity ana iudescribable con-
fusion OF sentiment
The steady ahsorntive power OF the
buying was bound 30 have a reassuring
effect. and the manner in which the
liquidation was brought 20 standstill
was highly impressive. Even before noon
sufficient stability had been established 20
face The report of "a failure by a broker
age house ln Boston. which would have
been sufficient 10 demoraitze yesterday $
Win the subsistence of the panic con-
difions "a saner and ouieter view devel-
o0od a study Of the facts In connection
with tho trust company which came 10
uricf Yesterday and Of the securities with
which IN was involved showed them TO
ho unique and not 10 be taken as justify
fug the wholesale fear and diStrust which
WAS felt Yesterday. not only Of all trust
companies. bat an Industrial securities.
kef.srf lf1eeg. there was abundance Of
rrocaution and discrimination shown to-
dar against many 81 the industrials. and
especially in the placing of loans. They
were not acceptable as collateral and
money was not easily procured for the
purpose of supporting them in the market.
Il was reported that the financial powers
cDncerting measures Of relief were not al
together iu agreement as 10 the length TO
which it was desired To go, some OF them
holding tho opinion that no real benefit
would accrue from sustaining some Of the
industrial securities. But the danger dis
closed hy Yesterdays events on the whole
fabric Of values carried the day in favor
% The relief measures.
Tho decision OF tho banks was 20 place
an their available resources Al the dis
1OSal 0f borrowers without regard 20 the
eject on the surplus reserve. The knowl-
edge or this determination had much 70
do with ailaying the apprehension. The
higher rates for money made during the
day were due 90 discrimination on ac-