The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1899-12-19


developed on the stock exchange this after
noon with the imperative need Of money
developed by the violent contraction in
values. Stocks we're being thrown over
without the slightest regard to the price
they would bring and at distressing sacr.
iice Of values. No end to the helplessness
Of the situation seemed in sight when, In
the last half hour of the market some
$10.0oo00o was offered on the stock ex-
change by the concerted action of the clear
Ing house banks to force the rate arbitrar-
lily down to per cent, without regard
to the distracted bidding 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 produced by their urgent
bidding were almost as violent as the de-
clines established 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 closing exceedingly
irregular and unsettled.
The excitement continued to the end
with sentiment looking forward anxiously
for the developments of another day. The
seriousness of the crisis has called forth
the best efforts of powerful and conserva-
tive financial interests, which are busy con-
certing measures to tide over the. money
difficulties which beset tho stock market
and which, by reason of their extent and
the Importance of the interests involved
threaten to affect the country's business
interests unless obstacles are opposed.
II is considered point gained to have
effected a cessation of the ruthless sacri-
fee Of values long enough for period Of
consideration over night. For the selling
OF stocks had unquestionably reached that
stage where ordinary considerations of pru-
dence or even of necessity had been thrown
to the wind and the sufferers from the
money stringency were unloading theiv
holdings in the true panic spirit. A pause
Of a few hours for consideration is likely In
itself to dc much toward rectifying such q
condition.
8, Ear as actual news concerned Today
thercwas suspension by newly organic
ed trust company and by firm Of bankers
and brokers who have figured as traders in
stocks to an extent of some Importance.
Neither event in itself would have been
SUN ciert to precipitate crisis. But they
were supplemented with a whole crop Of
wild and incoherent rumors which spared
no Interest, however long established and
hitherto free from suspicion 1t may have
bcen. One would think from the tone of
some cf the gossip that was floating about
by telephone. telegraph and by messenger
boys or by whispers and even by sho1ting
in the Hobbies of the stock exchange that
the whole financial fabric had been under
mined and was about to tumble in ruins.
yet tho day closed with the two failures
above mentioned as the sum total of dis
asters SO far as admitted insolvency was
concerned.
The reason for the widespread effect
upon sentiment of the trust company's
suspension was that 1t was one of 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 feature of the past year. The se-
curfties of these combinations as class
have been In disfavor in Wall street for
many weeks past, and, in fact, ever since
the headlong initiation in their prices and
subsequent collapse last spring. The disc
favor which Is attached to them in Wall
street has been quite indiscriminate and
based upon many varying conditions. The
principal allegations against them are
oyercapitalization, exorbtant prices paid
for constituent properties, and vulnerable
ity to existing and threatened legislation
against combinations. 1t is evident in SO
large a number Of combinations as have
been made, these allegations 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 affiliated
with the trust company which closed its
doors today.
The incident caused feeling of distrust
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 securities in the days trad
ing. 1t is to be noted. also, that the very
heavy commitments of capital to the trust
form Of enterprise itself and its incursions
on the banking field have aroused much
discussion.
1t hos been obvious for many months
past that great deal Of money has been
locked up by capitalists In these new indus
trial combinations, which were becoming
burdensome to carry by reason OF the
heavy demands for money in the ruguar
channels. the large absoxntion OF funds By.