The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-12-19
tISAXcI4L am CoMMERCIAL.

MONDAY. Dec. 10.
For several weeks past Tho moribund condi-
ton OF the Produce Exchange Trust Company
has been q source OF anxiety 10 experienced
bankers who ewere coenizant OF the
facts disclosed by the suspension OF the
concern this morning. BY thot event the
apprehensions Of comparatively small
circle at once became contagious and IN
many cases were doubtless wildly exaeRera-
ted. The Trust Company has simply paid the
penalty Of Incompetent management For
tunately it's affairs were brought 10 crisis In
time 10 save the money OF the depositcrs, 90
that the only losers will be those who supplied
tho money and elected a management for the
con iuct Of what has turned ont TO be bnd
piece OF business.
The suspension OF the company had q
greater effect upon tho stock market than
was warranted by the magnitude Of the
failure, because II occurred at time when
specuatlon was unsettled by active money both
here and abroad and also by the reverses sus-
tanned by tho British forces in South Africa.
Moreover the disaster suggested the possibi
that over-conidence In so-called Industrial
enterprises may not have been limited 10 the
managers Of the Produce Exchange Trust
Company. The situation on the Stock E1-
change was further aggravated by the suspen-
sion Of one OF the more active commission
houses. Coincident with these events London
sold about -. 900 shares Of various stocks
Attimes during the morning hours the stock
market was demoralizcd. but toward midday
II began TO right Itself An announcement that
the Clearing House banks would not charge
more than q per cent. on call loans which they
were willing 10 renew and that they would do
everything In their power to make the
dry comfortable for borrowers helped TO
bring about much needed rally. That move
euldpnly short nv the notion Of
some OF the newer trust companies. the man.
ayers OF which appeared TO have become
alarmed at tho fate. or. moro accurately, the
retribution that has overtaken one of their num-
her. They called loans on an extensive scale.
and BY withdrawing money from the market.
when IL was most needed. furnished additional
rroof that their establishment 10 OF no benefitto
the financial community. The real trouble
with the Produce Exchange Trust Company Is
that In order to secure business In com petition
with older and more powerful concerns It had
TO accept risks that eventually sapped Its re-
sources. 80 far rs can be learned It's expert
rhce IS liEey 10 De an Isolated one.
The calling OF loans referred to threw ths
Stock Exchange community back upon
the banks and other lenders for accom-
modations. and as tho supply was
meagre the brokers began to bid for
money until ratio OF l25 per annum was
1N.'-"N''Ns
spasm OF liquidation which was the sovcrest
the Street has witnessed in several years. In
Tact. Tor hall an hour or so stocks were sold
TOT Whatever they would bring. and II is
no eIaggeration TO say that condition OF
panic prevailed. II is impossible to give
within the limits OF this article the wide
huctuatios That were made. They will he
found In the usual table following. and II will!
be seen that they were wild enough to intensity
feeling pAFVaHa1 fha
financial community during the last two hours
OF business
Tie banks promptly came to the relief OF tho |
Stteet anu at a hurrledly called meeting OF the |
clearing House committee and presidents Of |
several OF the larger institutions decided 10 |
throw slO.oOo,OOo into the call loan market. |
rms. together with the Offering OF s2,OOOOOO by |
hleading private banking HOUSE, broke the mar |
ket TO " per cent. The prices OF securities RAJ |
lied from the extreme low figures almost as
rapidly "a they had fallen. Still. recoveries OF 4
ana points. and even offs points. "a in the case
of Brooklyn Rapid Transit, left the usually active
shares 8 to points lower than on Saturday
while American Tobacco lost III points. Metro
poitan street Railway ~. Tennessee Coal aud |
Iron 10 and Continental Tobacco and Peoples
Gas points each.
r. me TOn'ea aY, Of to.d.y' almost un-
,,,,t 40 , eenk "nI not 90 tuily known
lected over night and a general r.adiust-
mept OF nrynirs NAV Ia naoos.as,
VI a"a'rS may 20 necessary in
more than ono brokerage office. The
supper, that will turn the market mus. be a
cont,,u,t flor % ~ -, -, n. W
,e.,.', Vi tue Rooa ouy'hg that was
feature OF the market to-day and from the |
short interest which shows p dIsnosI,Io, % |
cover The onnion ran - ,o.'.n'N W
80. - "'",'i may oe 'ehtureu IN view
OF the conultion OF tho business OF the country |
as set forth in trade financial and nf,c s,n,Is
tics that tbedacIina In ,,rioos -. .a,-,.,
80 80 ' e'uio J." prleeH !or securities has
now reached level that is likely to prove at