The Worcester spy. [volume] (Worcester, Mass.) 1898-1904, 1899-12-20
THE TIDE STEMMED
This Time 1t Was the Bears Who
Almost Stampeded When
Market Opened
GENERAL RISE OVER
MONDAYS CLOSE
Influence of Many Banks Checks
Bad Break in StockS-SmaIl
Firms Fail

New York, Dec. 1S.-There was a
complete reversal of sentiment in Wall
street today, and the latter part of the
session of the stock exchange witnessed
something like a panic among the
bears, who were making frantic efforts
to secure stocks to cover short con-
tracts and bidding prices up on them
selves.
The professional traders took the long
side of the market and bid up prices
to take the market away from the
bears. Many operators who had ruth
lessly sacrificed their holdings in the
pandemonium of yesterday were also
eager buyers in the hope of retrieving
losses. Besides these elements, there
was a large contingent of bargain
hunters made up of people with ready
money looking for investment and VINO
paid attention only to the regular anu
secure rate of return on their money
and who buy outright to hold.
The issue of the speculative connlct
was by no means certain until ABOUT
midway of the session, and yesterday 5
tide OF disaster was not stemmed WITH
cut great exertions on the part of the
most powerful financial interests in the
country acting in concert.
THE TIDE sTEMMED.
Millions of dollars in money were
forthcoming for the extension of cred
its to buyers of securities. The clearing
house banks supplemented their yes
terday's contribution of $lO,O0O00O by
another of the same amount, to be
loaned at the market rate. The an
nounced intention of the secretary of
the treasury to increase government de-
posits in government depositors, added
strength to the situation and $1,000, 600
became available from this source.
Under the influence of this abund-
ance, yesterdays panic rates for money
were at no time approached, but the
demand for loans made rapid lnroads
on the supply with a seemingly insatla-
BILE appetite. The rate went to 20 per-
cent, but steadily declined from that
point under the offerings of successive
millions until it was forced down to
6 per cent, and in the late afternoon
fell to IL, 5, 8 and at last to per
cent AS soon as the stringency re-
1axed, II became manifest that the pres
sure of liquidation was relieved, and
the market fell into a calm that seemed
profound by contrast with the contrast
hurly burly since yesterday morning.
MONEY RATE EASY.
When the money rate fell to an easy
basis, prices began to rebound ana
conversational recoveries were shown,
especially in the mercurial specialties.
The advances were so large as to in
vite considerable profit taking by the
traders in the final dealings but the
undertone continued strong until the
close, which showed substantial net
gains all through the list. The early
hours Of the trading witnessed very
heavy liquidation in continuance of
yesterdays process of recuperation.
But there was no approach to the
panic conditions of yesterday, at any
time The extensive and elaborate
preparations made to meet the crisis
were evident at the opening, and
prices were opened at large advances
all through the list. This result was
helped by the higher quotations sent
over from London, where the stock ex-
change had rumor of a partial re-
trieval by Gen. Butler of his recent di-
saster. The high prices for Americans
in London were doubtless due in part
to manipulative orders cabled from this
side. In furtherance of the general
plan to sustain and protect the market.
LIQUIDATING SALES.
The opening advance was met by an
avalanche of liquidating sales, which
promptly drove down prices, in spite
of the utmost efforts to sustain them.
Not a few stocks showed evidences of
positive weakness, and the first two
hours Of trading We're given up to fu-
rious activity and indescribable confu-
sion Of sentiment. The steady absorp
have reassuring effect, and the man
ner in which the liquidation was
brought to a standstill was highly i'm
pFessive. Even before noon, sufficient
Stability had been established to face
the report of a failure by a brokerage
in Boston with marked fortitude.
With the subsistence of the panic con-
ditions, a quieter view of conditions
developed. A study of the facts in
connection with the trust company,
which came to grief yesterday, and of
the securities with which it was in
Volved. showed them to be unique and
not to be taken as justifying the whole
sale fear and distrust which was felt
yesterday, not only of all trust COM
panies, but all industrial securities.
Nevertheless, there was abundance of
precaution and discrimination shown
today against many of the industrials,
especially in the placing Of loans. They
were not acceptable, as collateral, and
money was not easily procured for the
PN4 pose VI SupOIllIlS lHeil.
NOT IN AGREEMENT.
IT was reported that the financial
powers concerting measures of relief
were not altogether in agreement as to
the length it was desirable to go some
of them holding the opinion that no
real benefit would accrue from sustain
ing some of the industrial securities.
But the danger disclosed by yesterdays
nj FL byia ~ vol
ues, carried the day in favor of the
relief measures. The decision of the
banks was to place the available re-
sources at the disposal of the borrow
ers. The knowledge of this deterrni-
nation had something to do with al
laying the apprehension. The higher
rates for money made during the day
were the discrimination on account of
the collateral where industrials were
included. The clearing house commit
tee was in session during the day, but
by the time the market closed, had