Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1899-12-22
BIG FAILURES.
Cause PnnicNy Rush to Un-
load Stocks.

New York, Dec. 1.-two failures, one
of n trust company with liabilities of
S11 ,650,0O0, and the other of stock ex-
change firm; sales of 1,615,000 shares OF
stock on the New York stock exchange,
the biggest days business in the his
tory of the institution; call money bid
up to 1S6 per cent. and declines rang
ing from one to twenty points in all the
active stocks, were the features of y
market Monday which almost ran into
a panic. The expected happened when
the Produce Exchange Trust company
failed to open its doors in the morning,
and the news of this, coupled with the
failure of the stock exchange firm of
Henry Allen & Co., brought on serious
declines in all of the active stocks traded
in on the exchange. Added TO these un-
favorable developments there was a
stringency in the money market which
resulted in call loans being marked up
to 1875 per cent, with 1856 per cent. bid
near the close. All of these influences
tended to encourage liquidation, which
was general throughout the day, though
there was supposed to be large
amount of short selling by some of the
big operators. j. Pierpont Morgan
came to the relief of the market when
the call rate was at 1S6 with an offer to
loan $1,000, 900 at six per cent. This re-
lieved the strain, and later other bank
ers poured money into the market.
The failure of the Produce EX-
change Trust company is credited in
the street to big loans made by that
concern on the stocks of industrial
companies. The statement made pub
lie by the officers of the institution
after the closing of the doors showed
as one of the items in it's resources
Syndicate loans, $4,423,500." For
some time reports have been current
of the Produce Exchange Trust COM
pany being in n bad way financially,
and these resulted in heavy withdraw
ais Friday and Saturday. The state
bank examiner went over the
books and accounts of the company
week ago and said to the officers that
the company was not in n position to
continue business. The officers were
advised at that time that they must
build up the company's impaired re-
sources or close. The bank examiner
made further examination on Sat
urday, and as no move had been made
to strengthen the banks position ths
concern was practically ordered TO
close its doors, which it did Monday
morning.
The failure of Henry Allen G. Co. was
not particularly important one. The
firm failed once before, this being at
the time of the collapse of the cordage
trust in 1898. Arrangements were made
at that time to resume business, and
the firm has since been carrying on
business in an office at IA Wall street.
Monday night the news came that
there would be no further cause for
excitement. Secretary Gage has au-
thorized the increase of deposits in ma
tional bank repositories by $3O,OOO,Ooo
and possibly S4O,0Oo,OOO, on the banks
depositing with the government United
States bonds as securities. This ac.
tion is timely. 1t probably prevents
more trouble in Wall street, and the
men who control financial affairs are
more than enthusiastic in their praise
of the secretary for his prompt and eff
ficient action at such time.