The times., 1899-12-20

NEW YORK. Dec la.-That yesterdays
demorallzed conditions in the stock mar
let were not repeated today was owing al
together to The bold and intelligent course
adopted by the leading and influential bank
presidents constituting the executive com
mittee Of the Clearing House Association.
This is not the first time that these gen.
uemen through recognizing thar exraordi-
nary conditions required extraordinary ac-
uon. have checked stock market panics.
and beyond question. the thanks of the
community and Of Wall Street in parJigu-
lar. are due TO them at this time
The Clearing House Committee, with
other prominent bank officers met at the
clearing house al il clock Word was
brought by Howard p Frothingham rhat
the first call lean Of The day had been made
al 50 per cent The bank officers decided
to put in the hands OF Frederick ID. TapUan,
President OF The GallayH National Bank,
SIC COCO more, with instructions TO lend
it on such terms as he saw nj. Under
Mr Tappen's authorization Nj. Frothiug-
nam loaned S5,0CQ.00G on the stock eX-
change breaking the rate down 10 per
cent. Other lenders offered large amounts
Of money and the rate declined 10 > per
cent. at which The closing loan was made.
The National City Bank. through G. W.
Turner, lent al s per cent about S5.ooe e0o,
which was said 10 be part Of Government
deposits Henry CleWs d Co. loaned ST.
200. eco al - per cent early in The day and
later loaned $4,000 al per cent
The Clearing House Committee adopted
the following resolution:
Resolved That the Clearing House
Committee request the trust companies Of
New YorE 20 lend their Unl,sd States bonds
20 the Tearing House Committee or to
banks direct Tor the purpose OF facilitating
the deposit of internal revenue Teeeipts in
the banks. and in this manner relieving
the money market.
The local trust companies are known 20
have good supply Of Government Bonds.
which one bank officer estimated today as
aggregaGng S15. coo 000 10 S20.0000to Tie
local banks have practically none OF their
OWL available, having already placed them
with the Treasury against the issue OF cir
culati0n and against Government deposits.
The enect of the resolution was seen in
the receipt al The subtreasury before bust
ness closed OF $6.6t0 $40 i'm Government
bonds turned in by six banks 10 secure
Government deposits. A step looking 10
relief OF the money market similar 20 that
which has already been taken by some
other companies whose dividends are pay
able iu January has been taken by The
international Paper Company. Checks for
the l. per cent quarterly dividend on the
preferred stock have already been mailed
10 many stockholders
Saturday LAST. while the banks surplus
reserves Wtra only shade over S-.#u0vy9
their actual cash holdings or reserves prop
er amounted tC S7gl $50 @Bu- The essential
fHar4.7- rF a --1eEr--.e Frr.a s. f- shall
Be used 70 times ct stress jusl Is IL is
well-estatlislcd pria-iple o. sound banSing
- iglf1 -. aly iu ZINES of panic.
Yesterdays panic w9Gid have been inn
pOss b!e EeG this last named principle been
foiiCa d. and ia was log 1aIly checked be-
fore the close Of business leg tns pre- .mila-
ry action of the same gentlemen VINO
adopted The further and more decisive poll
~ announced TO-DAY IS actually ~ very
small account hether in the process the
banks VIII drop below the so-eslled . per
cent laHtul reserve limit n their statement
Of Saturday
The main thing is mat raa banks have
wisely concluded -has she occasion jusEi-
fes them ia employing raeir fun reserves
in the present emergency ir which course
they are simply following the lines that
would be pursued b. auy prudent general
should his forces ba temporarily out
The Clearing House Committee wisely
lvoided an issue Of loan certificates. which
expe5ient has been shown 30 experience
liable TO abuse. and iu pursuing 1e course
Lhev have the banks are following
the simpler and the safer policy II is
not their intention. il may la said. tc lend
prodigaily upon the present orcasign. 5ut
only TO supply The more urgent require
nenls Of deserving bcrro1 RS.
While rrrnra saaff continued IS rTrn-
maud very high rates Today The Rnowle5ge
that yesterdays experience would not be
repeated and that accommodation could
ba had when necessary produced @ thor
JuEh reversal in market conditions The
dealings showed plainly that liquidation
was stiH in progress -n various quarters
OF The market, particularly at The opening
OF business. In the FIRST hour the mar
ket's tone was quite uncertain and irreg-
ular but with the course Of the cay a
number Of very pronounced recoveries in
prices appeared.
These rallies reached round figures In the
instances Of New York Central. Louisville
and Nashville. Northwestern. Rock Island,
ST Paul. and the standard ISSUES generally.
and as was 10 be expected the iudustriais
and speclalties also recovered sharply.
The dealings were by no means in 50
large volume as Oh yesterday. but they
were wen diversified. ana were naturally
marked by a tone Of confidence that was
wholly absent then. There was again little
or no news beariuAIpou particular stocks
and interest was altogether engrossed with
the change iD conditions following upon
the action Of the banks
Sterling exchange weakened somewhat
under The influence Of the high rates which
prevailed for money, but on he other hand
IL rose sharply both ID Paris and Berlin
notwithstanding the higher discount rates
prevailing st the latter point Foreign
houses were buyers OF stocks il this mar
ket and much better tone was report cd
a. London. although Consols again declined
fracri0nally iu anticipation OF the an.
u0uuCemeut q 2 new issue
Favorable war rumCrs were reported q!
playing their part iI The Improvement IL
the London market although Fl might b'
thought that iu the light OF experience the!
would be accepted only with great caution
IL may be noted. also that New YoTi
exchange ln Chicago was today rerorte,
Al Z premium oi so 10 SO cents. which IS
virtual guarantee Of heavy receipts 81 rur
rency from that quarter. The action OF rhl
Secretary 0f the Treasury iu providing io
the diversion OF Government receipts uuGe
the internal revenue law Was also FaDs.ac
toTily received, although no Substantial ef