The record-union. [volume] (Sacramento, Calif.) 1891-1903, 1899-12-19
EXCITING DAY
AT new YORK.
Panic Conditions Develop on the
Stock Exchange
Que to imperative Nsed Of Money TO Cover
Violent Contrdctions In Values.

Violent Contrdciions In Values.
Stocks Thrown Over Without the
Slightest Regard to the Price
They Would Bring and at Dis
tressing Sacrifices-The Situa-
ton Finally Relieved by Clear
ing House Banks Offering Ten
Million Dollars on the Exchange
to Force Down Money Rates.
NEW YORK, Dec. 1S.-Panic condi-
tons developed on the Stock Exchange
this afternoon with the imperative
| need of money developed by the violent
contraction in values. Stocks were
being thrown over without the slight
est regard to the price they would
bring, and at distressing sacrifices of
values. No end to the helplessness OF
the situation seemed in sight, when in
| $1O,OOO,OO0 was offered on the Stock
| Exchange by the concerted action of
the clearing house banks to force the
rate arbitrarily down to per cent,
without regard to the distracted bid
| ding 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 pro-
duced by their urgent bidding were al
| most as violent as the declines estab-
lished and 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 before the close, making the clos
ing exceedingly irregular and unsettled
The excitement continued to the end,
with sentiment looking forward anx-
iously for the developments of another
day.
The seriousness of the crisis has
| called forth the best efforts of power
| full and conservative financial inter-
ests, which are busy concerting meas
ures to tide over the money difficulties
x I,
which, by reason of their extent and
the Importance of the interests in
volved, threaten to affect the coun-
try's business interests, unless obsta-
cles are opposed.
1t is considered point gained to
have effected cessation of the ruth
less sacrifice e2<salues long enough for
| a period of consideration over night
for the selling of stocks had unques-
tionably reached that stage where or
binary considerations of prudence or
even of necessity had been thrown to
the wind, and the sufferers from the
money stringency were unloading the
holdings in the true panic spirit A
pause of a few hours for considera ton
is likely in itself to do much toward
rectifying such a condition.
A newly organized trust company
and firm Of bankers and brokers, who
have figured as traders in stocks to
an extent of some Importance, failed
Neither event in itself would have
been sufficient to precipitate a crisis.
But they were supplemented with a
whole crop of wild and incoherent ru-
mors which spared no interest, how
ever powerful long established and
hitherto free from suspicion it may
have been. One would think from the
tone Of some of the gossip that was
floating about by telegraph, by tele-
phone, and by messengers, or by whis-
pers, and even by shouting in the lob
bies of the Stock Exchange, that the
whole financial fabric had been under
mined and was about to tumble in
61x-
two failures above mentioned as the
sum total of disaster, so far as admit
ted insolvency was concerned
The reason for the widespread effect
upon sentiment of the trust company's
suspension was that it was one of a
large number of institutions recently
formed on similar lines, and which
have thrived upon the multiplying Of
securities incident to the Industrial
combinations which have been a feat
ure of the past year. The securities
of these combinations as 2. class have
been in disfavor in Wall street for
many weeks past, and in fact ever
since the headlong imitation in their
prices and subsequent collapse last
spring. The disfavor which is at
tached to them in Wall street has been
quite indiscriminate, and based upon
many varying considerations The
principal allegations against them are
over pitalization, exorbitant prices
paid for constituent property and yul-
nerability to existing and threatened
legislation against combines. It is evil
dent in so large a number of combi-
nations as have been made, these al
legations can scarcely apply to all
alike. But the sheep have not been
separated from the goats in Wall
street, and some of the least fortunate
of the new combinations have been af-
filiated with the trust company which
closed its doors to-day.
The incident caused a feeling of dis
trust with regard to the whole class of
Industrial securities as is sufficiently
evident from the wide breaches made
In the values of this class of securi-
ties in the days trading. It is to be
noted also that the very heavy com
mitments of capital to the trust form
of enterprise itself and it's incursions
on the banking field have aroused much
discussion. 1t has been obvious for
| many months past that a great deal
of money had been locked up by capt.
talists in these new industrial COM
binations, which were becoming ;.ur-
densome to carry by reason of the
heavy demands for money in the reg
ular channels. the large absorption Of
funds by reason of the Governments
surplus revenues. and the urgent needs
of the London money market, grow