Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1899-12-19
THE MONEY PANIC.
slaughter Of Values on New
York Stock Exchange.
Clearing House Banks Afford Relief
and Market Slightly Receivers.
Two Failures -Ireasury 10 Increase Bank De.
Situation at Boston.

view VI n, Lee lS--fdHlt cDllullIOlls
developed on the Stock Exchange, this
afternoon, with the Imperative need OF
money developed by the violent con
traction in values. Stocks We're thrown
over without the slightest regard to the
price they would bring, and at dis
treSsing sacrifice of values. No end to
the helpleSSneSS of the situation SCENE q
in sight when, in the last half hour Of
the market some $4,000, 900. 600 was Of
fercd on the Stock Exchange by the
concerted action Of the Clearing House
banks to force the rate down to per
cent, without regard to the distracted
bidding at higher rates, which was be
ing done by brokers for distressed
operators. The collapse in the money
rate checked the decline and drove the
bears To cover The recoverieS pro-
duced by their urgent bidding We're al
most AS violent as the declines had
been, but the losses We're by no means
entirely retrieved. Large offerings Of
stocks continued at the rally and at
some points of the list prices broke
anc W before the close, making the
closing exceedingly irregular and I'M
settled. The excitement continued to
the end, with sentiment looking for
ward anXiously for the developments
Of another day. The seriousness of the
crisis has called north the best efforts
of powerful and conservative financial
interests, who are busy concerning
measures to tide over the mony difficult
ties which beset the stock market. and
which, by reason of their extent and
the choice Of the interests involved
threaten to affect the country's bust
ness interests unless obstacles are OPP
posed. 1t is considered point gained
to have effected a cessation of the
ruthless sacrifice of values long enough
for period Of consideration over night.
So far as actual news was concerned
today. there was a suspension by q
newly organized trust company, the
Produce Exchange Trust Co.. and by
firm of bankers and brokers' Henry
Allen & Co. who have figured as trad
ers in stock to an extent of some i'm
pOrtance. Neither event in itself would
have been sufficient to precipitate a
crisis. But they We're supplemented
with whole crop of wild rumors which
spared no interest. however powerful
long established and hitherto free from
suspicion it may have been. In spite
Of the exaggerated reports. the day
closed with two failures above men
toned as the sum total of disaster. so
far as admitted insolvency was con-
cerned. The reason for the widespread
effect upon sentiment of the Trust Cos
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
securities incident to the vast indus
trial combinations which have been a |
feature of the past year. The securi- |
ties of these combinations as a 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. The principal allegations |
against them are capitalization. |
eXorbitant prices paid for constituent !
and vulnerability to existing
and threatened legislation against com |
binations. Some Of the least fortunate
Of the new combinations have been |
affiliated With the Trust Co, which |
closed. today The incident caused a |
feeling Of distrust with regard to the
whole class Of industrial securities as
Il
in the values Of such securities in the
days trading.
Before the concerted relief by the Clear
ing House banks the money rate leaped |
TO %. 20, loo. and. according to the official
record. 10 per cent. Creditable reports |
assert that lSG per cent. was paid for
money during the day. An idea of the
severity of losses may be gained from A |
few specifications: American Tobacco fell
an extreme PIG; Metropolitan. 20I4 Peo-
pies Gas, II; Sugar. 12l2: Continental To.
bacco. III; Tennessee Coal and Iron. Il:
9; ana Leather preferred. GA.
all in the list of lndustrills. In the rail
road list such stocks as Northwestern
New York Central, Great Northern pre-
'erred. Rock Island. Southern Pacific. the
Mon Pacifics. the Northern Pacifics
Atchison preferred. and in fact the most
prominent and active railroad stocks in
he whole list showed losses all the way
rom four to nine points. The rallies at
he final offering down Of the money rate
o per cent. ran from five TO 10 points.
The days transactions ran up to a total
If nearly 1,G50Oo0 shares. which is the
'ecord for a days business. The excite
nent was intense all day long and
hronSs Of brokers and operators surged
Dver the floor Of the Exchange ana about
very post all day long. The change in
Irices between sales ran up to one, two
md even three points both on the down
,rade and on the recovery. After the
lose of the Exchange there was a meet
ng of the Clearing House committee to
oncert further measures for safety and
elief. \ meeting of the Clearing House
vas called for II O'Clock tomorrow. with
| view to being prepared for action in
ase of further necessity. The democrat
cation in stocks affected the bond mar
et more or less, but losses were largely
onfined to the lower grade issues, which
ave been subject to speculation.
New York, Dec. 1S.-The Produce
Exchange Trust Co, with offices in the
standard Oil building at % Broadway.
las closed it's doors. notice upOn
he door says that the company has
uspended payment pending an exami-