The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1899-12-19
"A STOCK MARKET PANIC.
lndustriaIs and Railways All Sold OH Many
Points.
CALL MONEY WENT TO OVER 100 PER CENT
south African War Was an Influence
In Conditiops--Conccr Clearing
House Action--Two Failures.


afternoon with imperative need of money
developed by the violent contract in val
without the slightest regard to prices they
would bring and at distressing sacrifices
of values. No end to the helplessness Of
the situation seemed In sight when, ia
the last half hour OF the market. some
Slo00o.000 was offered on the stock en-
change by the concerted action OF the
clearing house banks to force the rate
arbitrarily down to per cent without re-
gard to the distracted bidding at high
rates which was being done by other
brokers for distressed operators. The coll
lapse in the money rate checked the de-
cline and drove the bears 10 cover The
recoveries produced by their urgent bid
ding were almost as violent as the. de-
clnes had been. but the losses were by no
means entirely retrieved. Large offerings
of stocks continued at the rally and at
some points of the list prices broke anew
ceedingly irregular and unsettled. The
excitement continued TO the end with
sentiment looking forward for develop
ments of another day The seriousness OF
the crisis has called forth the best effort;
of powerful and conservative financial in
terests who are busy concerning measures
to tide over the money difficulties which
beset the stock market and which by rea-
son of their extent and the Importance OF
the interests involved. threaten to affect
stacles are opposed 1t is considered
point gained to have effected a cessation
of the ruthless sacrifice of values long
enough for period OF consideration over
night. For the selling of stocks had un-
questionably reached that stage where or
binary considerations of prudence or of
necessity had been thrown to the winds.
and the sufferers from the money strin-
gency were unloading their holding in the
true panic spirit. \ pause of few hours
for consideration is likely In itself 10 do
much toward rectfying such a condition.
So far as actual news was concerned to-
day there was suspension by newly
organized trust company and by a hrm Of
bankers and brokers who have fgured az
traders in stocks to an extent Of great inn
M Naft
have been sufhcient'to preciptate a crisis
but they We're supplemented with a whole
crop OF wild and incoherent rumors which
spared no interest, however powerful. long
established and hitherto free from sus-
picion II may have been. One would think
from the tone of some of the gossip that
was floating ABOUT by telephone. telegraph
and messenger cA'by whispers and even
by shouting in the Hobbies of the stock
exchange that the whole financial faoric
had been undermined and was about to
tumble Yet the day closed with two fall
ures. as above mentioned. as the sum
total Of disaster. SO far as admitted in.
solvency Is concerned.
The reason for the widespread effect
upon sentiment OF the trust company sus-
a
number OF institutions recently formed
on similar lines and which have thriyed
upon the nultiplying of securities incident
to the industrial combinations which have
been a feature OF the past year The Sc
curiteS OF these combinations as class
nave been in disiavor In Wall street for
many weeks past and in fact ever since
the headlong imitation in their prices and
subsequent collapse last spring The dis
favor which is attached to them in Wall
street has been quite indiscriminate and
passed on many varying conditions The
principal allegations against them are
over capitalization. eXorbitant prices paid
for constituent properties and vulnerable
ity TO existing and threatened legislation
against combinations. 1t is evident that
in so large number of combinations as
have been made the allegations can
scarcely apply TO all alike. But the sheen
have not been separated from the goats
in Wall street and some OF the least for
tunate OF the new combinations have been
affiliated with the trust company which
closed its doors today. The incident
caused feeling of distrust with regard
to tho 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. II is to
be noted also that the very heavy commit
ments OF capital to the trust form OF
enterprise itself and its incursions on the
banking field have aroused much discus
sion 1t has been obvious for many
months past that a great deal of money
had been locked up by capitalists in these
new industrial combinations which We're
becoming burdensome to carry by reason
of the heavy demands for money in the
regular channels. the large absorption of
funds by reason of the government surplus
revenues and the urgent needs 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 II was that the
trust company failure today, coming upon
last weeks events in Boston, aroused
the fear that the suspected class OF Sc
curities were on the point OF succumbing
TO adverse influences In the effort to pro-
tect thesc securities others were also in
yolved, including some OF the most sub
stantial stocks on the list. The fall In
prices. instead OF revealing the situation.
added TO the weakness with cumulative
force, by reason OF the shrinkage in the
value OF eollatersls.
Before the concerted relief by the clear
ing house banks the money rate leaped
to 80. TO- 100 and according to the official
record 125 per cent, Credible reports as
sert that iss per cent was paid for money
during the day. The official record OF such
transaction was lost in the excitement
An .dea OF the severity OF Losses may be
gained from few specifications. Ameri-