The times., 1899-12-19


ConsoIs Take "A Drop - Confidence
Unsettled by Several Failures.
NEW YORK. Dec lS-Today's stock
market was a reelection rather Of the
necessities Of oyer-extended spectators
than Of any actual developments In outside
conditions. That is TO say, the week opened
with little engaging attention that was not
generally known Saturday. Unexpectedly
high rates did indeed develop in the money
market, but the conditions there seemed 10
be rather the reflection than the cause Of
the semi-panic that prevailed in the stock
market.
AS is ordinarily the case in similar mar
ket circumstances. a description Of the
days transactions is, peTfoTce, restricted
10 the bare statement that there was urgent
and precipitate liquidation throughout the
market. and that this selling was met at
The more severe declines shown by buying
Of the most substantial character.
London was again an unSetuIng influence
in the local market. Foreign houses were
sellers here, and all quarters Of the Lon
don market were reported sharply de-
pressed. There was a sensational decline
d
carried them down 10 go, the lowest price
in many years.
The break in this instance was reason
ably referred 10 the prospects for an early
issue of consols for the purpose @. prose
cutting the war in South Africa, and this
prospect naturally induced Liquidation of
other securities
Confidence was further unsettled by the
failures announced today which, while at
least in one Instance causing no surprise,
produced the inevitable uneasiness that
there were more to come.
Rumors 10 this effect were persistentIy
circulated throughout the day, with the
natural result Of unsettling confidence and
creating an uneasiness which was manifest
al the close.
II may be added that transactions in the
stock market were in enormous volume,
and that the declines that resulted from the
days dealings. as viii be seen in the table
Of transactions, were extremely severe.
That the financial atmosphere was mate
rally cleared up by reason Of the days de-
velopmeuts there can be 10 doubt even
though that circumstance can be regarded
as furnishing poor comfort 10 enormous
losses sustained.
As already noted. the days price move
ments resulted wholly from the urgent and
enforced liquidation Of spectators whose
resources were exhausted The more eX-
treme movements that took place in par
ucular stocks reflected nothing more than
the particular character of the liquidation
which appeared therein. There was yir-
tually 10 news bearing upon particular
stocks and in the general circumstances Of
the day il would have been accorded scant
attention, had there been any.
The failure Of the Produce Exchange
Trust Company, announced today. was the
first important collapse OF any financial in
stltution in this city IN q number Of years.
In view OF the multiplication Of trust COM
panies in this city Of late, The casualty nat
urally created a great deal Of uneasiness,
particularly as respected some Of the more
newly-formed trust companies; but this IN
easiness appeared 10 be altogether unwar-
Tanted
Without regard 10 the merits Of the
newly-formed trust companies or the pros
poets for their profitable operation in the
future II should, in ali fairness, be said
that their condition IS in she main thor
oughly sound, and indeed. few Of thsm as
yet have incurred q sufficient amount Of
Liabilities % render them al all vulnerable.
The collapse Of the Produce Exchange
Trust Company was owing TO particular and
specific circumstances. all Of which can be
grouped under The head Of wTetche1 mis-
maIaga ameut-
AZ -ALt--L Ll-A-L-tf.L4.L Win aL-t AatrLLE A-
the doors Of this trust company. il may be
noted that there was further violent col
lapse In the stocks Of q number OF trust
companies in Baltimore which are com
mitled IL the same ill-starTed enterprise.
Fortunately there Is reason 10 believe that
the latter companies are strong enough
10 wipe OF their losses without acute en-
barrassment.
As noted the extremely high rates re-
corded iu the call loan money market were
as much the result as the cause OF the days
developments. The newly established trust
companies for example, rot only called IN
their loans. but absolutely withheld any
accommodation from the market
There was some discussion in the course
Of the day as to the advisa bil.ty OF the
associated banks having recourse 10 an is
sue OF clearing house certificates 10 relieve
the situation. but eTpediency OF any such
action al the moment seems questionable.
The proper source Of relief iu all the
present circumstances OF the situation is
the United States Treasury. which could
readily quickly, and justifably release a
sufficient part o. the sums lying idle IN its
vaults 10 restore matters TO an equilibrium
both here and in London.
The sharp rally at the close was on In
formation Of the meeting Of the Clearing
House Committee for the purpose Of taking
concerted action for the relief Of the money
market When this news became known
money which had been loaned ~ l25 per
cent. broke 10 per cent