The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1899-12-19

| developed on the stock exchange this
afternoon, with the imperative need Of
money developed by the violent con-
traction in values. Stocks We're being
| thrown over without the slightest re-
gard 10 the price they would bring and
| at distressing sacrifices OF values NO
/ end to the helplessness a the situation
seemed in sight VIXEN. in the last half
hour of the market. some $l0,0OO.0OO was
offered ON the stock exchange by the
concerted action OF tbs clearing house
/ banks TO force the rate arbitrarily
down to 6 per cent. WITHOUT regard TO
| the distracted bidding at higher rates.
which was being done byNotner Dro-
! kerS for distressed operators,
The collapse in the mOiiey rate
checked the decline and drove the
bears to cover. The recoveriesN pro-
duced by their urgent bidding were al
most as violent as the declines estap-
\ lished. the losses were by no means en-
! tirely retrieved. Large offerings OF
stocks continued at the rally and al
some points of the list prices broke
anew before the close. making the clos
ing exceedingly irregular and unset
! tied
| The excitement continued to the end
with sentiment looking forward anxi-
Ously for the developments of another
day. The seriousness of the crisis has
|
full and conservative financial inter-
/ ssts which are busy concerting meas
ures to tide over the money difficulties
which beset the stock market. and
which, by reason of their extent and
the Importance of the interests in
volved. threaten to affect the counery's
business interests unless obstacles are
opposed.
Prudence to the Wind.
| 1t is considered a point gained to
have effected a cessation of the ruth
less sacrifice of the values long. enough
for a period of consideration over
night. For the selling of stocks had
questionably reached that stage where
ordinary considerations Of prudence
or even of necessity had been thrown
to the wind and the sufferers from the
money strinSency We're unloading their
holdings in the true panic spirit
pause of a few hours for consideration
is likely in itself to do much toward
| rectifying such a condition.
So far as actual news was concerned
toCay there was q suspension by
newly organized trust company and by
a firIl~ of bankers and brokers who have
] figured as traders in stocks to an ex-
tent Of some Importance. Neither event
in Itself would have been sufficient to
precipitate a crisis. But they were
supplemented with a whole crop of wild
and incoherent runners which spared no
interest, however 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 telephone, telegraph and by
messenger boys or by whispers and
even by shouting in the lobbies of the
stock exchange. that the whole finan-
cial fabric had been undermined and
was about to tumble in ruins. Yet the
| day closed with the two failures above
mentioned as the sum total of disaster,
so far as admitted insolvency was
concerned.
Failure of Trust Company.
The. reason for the widespread effect
upon sentiment of the trust companys
suspension was that il was one of a
large number of institutions recently
formed on similar lines and which have
thrived upon the multiplying of Securi-
ties incident to the industrial combina-
tions which have been a. feature Of the
past year. The securities of these COM
binations as a class have been in dis
favor in Wall street fer many weeks
past. and in fact ever since the head
long imitation in their prices and sub
sequent collapse last spring. The dis
favor which is attached TO them in
Wall street has been quite indiscrimi
nate and based upon many varying
considerations.
The principal allegations against
them are OVer-capitalizatior, excrbitant
prices paid for constituent properties
and vuinerability to exiSsing and
threatened legislation against combi-
nations. 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
WaE street and some of the least for
tunate of the new combinations have
been afflicted with the trust company,
which closed its doors today
Feeling of Distrust.
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 securities in
the days trading. 1t is to be noted
also that the very heavy commitments
of capital to the trust form of enter
prise itself and its ineursions on the
banking field have aroused much dis
cussion.
1t has been obvious for many months
past that a great deal Of money had
been locked up by capitalists in these
new industrial combinations, which
We're becoming burdensome to carry by
reason of the heavy demands for money
in the regular channels. the large ab-
sorption of funds by reason OF the gov
ernment's surplus resources and the ur-
gent need of-the London money mar
ket growing out of the Transvaal war.
Last weeks threatening situation in
Boston was the outgrowth of the bur-
den of copper stocks. Thus it was that
the trust company failure today COM
ing upon last weeks events in BOs-
ton, aroused the fear that the suspect
ed class of securities were on the point
of succumbins to adverse influences. In
the effort TO protect these securities
others We're also involved. including
some CT the most substantial stocks on
the list. The fail in prices instead of
relieving the situation. added 10 the
weakness with cumulative force by rea-
son of the shrinkage in the value Of col
laterals-
Money Rate Goes Up.
Before the concerted relief by the
clearing house banks the money rate
leaped to so. 20. 100. and. according to
the official record. 125 per cent credi-
bic reports assert that lS6 per cent was
paid for money during the day The
official record of such transaction was
lost in the excitement.
An idea of the severity of losses may
be gained from few SPECIFICATIONS.
Thus American Tobacco fell an extreme