Virginian-pilot. (Norfolk, Va.) 1898-1911, 1899-12-19
Panic Conditions PrecIpitated by an
Imperative Need of Money.
CONTRACTION IN VALUES
Clearing House Banks FORCED Rntcs
Down TO SIX For Cent, Chock Ell
tho Decline ana Drove the Bears
TO Covor-Tho Produce Exchange
Trust Company Fnils-A.siSn-
men,s ia Boston md baltimore.

(By Telegraph to Virginian-Pilot)
New York, Dec. 1S.-Punic conditions
devepoled on the stock exchange this
afternoon with the imperative need OF
money developed by the violent con-
traction in values. Stocks were being
thrown over without the slightest re-
gard to the price they would bring and
at distressing sacrifice OF values. No
end 10 the hciplessness of the situation
seemed in sight. when, in the last half
hour OF the market some S10.000000 was
offered on the stock exchange by the
concerted action of the Clearing House
banks TO force the ia te arbitrarily down
to six per cent. without regard to the
distracted bidding at higher rates
which was being done by other brokers
for distressed operators. Tho collapse
in the money rate checked the decline
and drove the bears to cover. The re-
coveries produced by their urgent bid
ding were almost as violent as the de-
clines had been. hut the losses We're by
no means entirely retrieved. Large of :
feriEgs of stocks continued at the rally,
and at some point of the list prices
broke anew before the Close making
the closing exceedingly irregular and
the end, with n sentiment looking for
ward anSiously for the developments
of another day. The seriousness of the
crisis has called forth the best efforts
OF powerful and conservative financial
interests. who are busy concerning
measures to tide over the money diff
culties, which beset the stock market
and which. by reason OF their. extent
and the importance OF the interests in
volved. threaten to affect the oountry's
business interests, unless obstacles are
opposed.
CROP OF WILD RUMORS.
So far as actual news was concerned
to-day there was q suspension by
newly organized 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 suf-
cient to precipitate Il crisis. But they
were supplemented with n whole crop
oil wild and incoherent rumors, which
spared no interest, however powerful.
long established and hitherto free from
suspicion 1t may have been. One would
think, from the tone of some of the COS
sip that was flying about by telephone,
telegraph and by messenger boy or by
whispers and even by shoutings in the
lobbics of the Stock Exchange, that tho
whole financial fabric had been under
mined and was about to tumble in
ruins Yet the day closed with two
failures above mentioned, as the sum
total of disaster, so far as admitted in
solvency was concerned. The reason
Tor the widespread effect upon sent-
ment OF thettrust companies suspension
was that 1t was one Of large number
OF institutions recently formed on sim
liar lines. and which have thriven upon
the multiplying of securities incident to
ctT~t0 -
have been a feature of the past year.
The securities of these combinations
as 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 Some of the least fortunate Of
the new combinations have been affiI-
lated with. the trust company which
closedyits doors to-day. The Incident
caused a feeling of dstruat with re-
gard 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.
TRUST CoAIPANY's FAILURE.
New York. Dec. 1S-rhe Produce FIX
change Trust Company. OF this city,
closed it's doors to-day. A notice upon
the door says that the company sus-
pended payment pending a readjust-
ment of It's affairs
statement of the company's condi-
ton at the close Of business Saturday
last shows assets, S11,719 500. including
syndicate loans Of S4,423. 500: demand
loans, $6S6.000: cash on hand. s11S.00O;
cash In Western National Bank, $685.
600; cash In National City Bank, $780,
600; cash in First National Bank. Jer-
sey City. 100000; cash in Standard
Bank. s269,000.
The Produce Exchange Trust Com.
pany was organized n couple of years
ago with capital Of $4,000, 600 and had
reported surplus and undivided profit.
at this time Of over $1,000, 000 It's bus
mess was chiefly with merchants
tradesmen and corporations in its inn
mediate vicinity, and 1t was also sub.
posed to do some of the banking bust
ness Of the Standard Oil Company 1t
had been designated by the banking de-
partment Of the States as a legal depos
itory for State moneys and municipaI
moneys, as we'll as for the funds of saw
ings banks and State banks. The Off
GERS of the company are: President.
Turner A. Beall; Presidents Ed
win Gould, Thomas a. Mcintyre and S.
d. Scudder;, Secretary and Treasurer.
q. l.. Chamberlain; Assistant Secre-
fary-Treasurer, Williams Laws.
A STATEMENT.
The officers of the company declined
TO see any body OF give anything for