The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1899-12-19
AT 1875 PER CENT
Call Money Scars to Dizzy
Heights on the New York
Exchange,
Stocks Dropping Proportionately.
Heavy Buying Orders OF
the Bears
Coupled With Timely Action by
the Banks Relieved the
Situation.

New YORK Dec. 10. The air on the
Stock Exchange at the opening was one
of uncertainty and apprehension. All
commission houses were demanding
large additional margins and the dispo-
sition Of tired holders to let go and take
their losses made it certain that offer.
ings would be heavy. Supporting or.
ders at the opening saved the market
from violent losses. and Sugar worked
back to a point above closing, but the
tone Of the market was weak.
The announcement Of the suspension
of one Of the many new trust companies
threw the market into Generalization
and confusion on account of its afilia-
tons with some of the new industrial
combinations. The suspension soon
afterwards Of q board member, whose
weakness was supposed to proceed from
much Of the same sources, made the de.
preston more acute.
The most substantial stocks were
thrown over with little regard to price.
That large financial interests were be-
ing forced to make sacrifices to secure
ready funds was the central fact stand.
ing out clearly.
Banks Come to the Rsscue.
The situation was such that the banks
in the clearing house association were
moved to a decision to charge no higher
than s per cent for renewals of call
loans, and to avoid as far as possible the
charging Of extreme rates for money.
The market quoted down somewhat
after this news was announced but be.
fore then the losses had extended in the
industrials from 3 to - points. For the
railroads. losses pan from , to CD. the
latter IN Rock Island. which suffered
especially on account Of the selling out
Of some blocks under the rule of the
exchange.
The relief caused by the declaration
of the banks to DO what they could to
keep the money rate down. kept the
market quiet for a while. and some sub
stantial rallies were made, but as the
day progressed the argent need of
money caused a violent advance in the
call loan rate on the board. Thirty per
cent was paid and almost immediately
90 per cent was bid. followed by a de.
mand for money at 20 per cent. Stocks
gave way again all around and were
thrown over In great volume on a rap.
idly descending scale. Successive lots
of 100 shares produced a fall of a point,
in some stocks for three points.
The market fell into utter demorali.
cation, which continued until afte,
1880 o'clock, when the bears began
covering, bidding for stocks in the same
reckless way in which they had sold
and bringing prices back a point or up.
wards at a jump. The rush of bears te
cover carried prices Of stocks which
have suffered more severely up again
from 5 TO 10 points. The excltemen,
was extreme and continued with furi
u activity up to the close Of the
market.
Ten minutes before the close none,
was loaning at l25 per cent. At thi.
point 1t was announced that the clear
ing house banks had made a rate of {
per cent for renewals Of time loans and
as a result call money on the exchange
dropped to that figure. temporarily, a,
least, relieving the great tension.