The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1900-01-17
A WALL STREET PANIC.
Securities Drop Many Points and Two
Failures Are Announced.
BANKSCOME TO MARKETS RELIEF
Tho Stock Exchange Experiences Ono OF
the Worst Days in It's History-Treas-
ury Ofers q Plan OF Relief-Proffsred
Loans OF s11 ,ooo,o 900 Aid tho strin-
rsnt Money Market-MilIions Lost.

New YORK CrTY Especially D.-Much the
worst panic that Wall street has seen since
the memorable crash OF 1898, commonly
known as tho "Cordage SMASH" came up
on tho Street Monday, and when the day
was over market values had declined mil
lions upon millions OF dollars, men who
but few hours before had counted their
money by the thousands were ruined, and
gloom was everywhere. In many respects,
indeed, 1t was probably tho worst single.
day panic the Street had ever known.
Recorded transactions on the Stock Ex-
change reached the enormous total OF
1,5Sl, ,150 shares. Onthe exchanges otother
cities thers were also crashes and abnor.
mally heavy trading. From various cities
throughout the country came reports OF
disastrous speculative losses, both In local
and in New York stocks.
Money was lent on call as high as 1876
per cent. per annum, and there WAS q
meeting OF bank presidents, followed By
offers to lend $4,000, ,oOoato stem the tidts
OF liquidation. ~ 81
The Produce Exchange Trust Company,
o concern with more than jS5 900, 900 capt.
tal and surplus, closed its doors, aud there
were false rumors that one, other trust
company and half dozen banks had sus-
pended payment.
It did happen that the Seventh National
Bank served notice on the Clearing House
banks that after twenty-four hours 1t
would cense to act rs Clearing House agent
for the International Bank and Trust Com
pany. That mpany deposited city bonds
with the bank to protect its checks and its
secretary announced that it was absolutely
solvent.
The stock Exchange firm OF Henry Allen
& Co. collapsed with estimated liabilities
OF more than 81, 900, 900. There was vio-
lent collapse 10 values on the Stock Elk.
change, where prices OF shares dropped
from SO to 921, the declines OF 50 to SO
share between sales being frequent hap
penlng.
Late In the, afternoon the presidents OF
the larger banks met at the Clearing House
to adopt measures to relieve the situation,
but it was not until the bankers had Of
fered to lend millions OF dollars ut six per
cent. that the backbone OF the panic was
broken.
Meantime the actual and contingent
losses were enormous. Trust company
stockholders had IS, 900, 900 tied up, while
deposltors' money, to the sum OF from $2.-
600 600 to $1,000, 900, had been locked up.
Of more than 81, 900, 900, while securities
worth several times that sum were in
volved.
And the loss to holders OF securities,
when the slump In the market prices is
considered, had mounted up into many
more millions.
The crash was purely speculative In Its
cbaracter-similar to the Grant & Ward
failure in 1884. On Monday the failures
were comparatively few, and none OF the
Clearing House banks or big investment
houses In Wall street was threatened. In
fact, the break from the high interest
rates came when J. P. Morgan & Co..
dumped $l,0OO,0O0 into the Stock Ex-
change aud lent it at six per cent, al
though the firm might have got 100 per
cent.
The panic In money was provoked by
the failure Of the trust company when the
tension in the money markets was great,
for fear the foreign markets might be up
set by news from the Transvaal. Already
speculators had been crippled, and tie
fear that more bubbles would burst threw
them into panic.
The investment and conservative trading
element OF the treet took 1t as matter OF
course. They had expected speculative
whirl Of some sort. 1t happened thut the
bears won because p weak spot in local
financial institution had been uncovered.