The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1901-06-28
A DROP IN STOCK PRICES
Suspension Of Seventh National Bank
the Cause.
NO APPEARANCE OF DECENTRALIZATION
Effect OF Suspension Had Been Dis
counted by Rumors When Its Diff
fiouties Were Announced.

New York, June 2I.-lThere was quite q
lively splitting cut OF stocks for time
today "a a result OF the suspension OF the |
seventh National bank, ono Of the minor
members Of the Clearing House associa
tion, In consequence Of the action OF the
comptroller but the market appeared at
no time near Generalization.
! The drop In prices was, however. very
| general and extended to over points In
number Of the principal active stocks,
! which have been recent favorites N the
speculation ST. Paul, linton Pacific and
Manhattan were the severest sufferers and
Missouri Pacific and Texas and Pacific also
yielded rather easily. The latter pat OF
the day, however, witnessed a general re-
covery which practically wiped out the
early losses and established considerable
gains for some leading stocks, Union Pa
clHc, st. Paul and Metropolitan street
Railway were the only stocks among the
leaders which failed to benefit fully from
this late recuperatiou in the market
The hears were an active factor dunng
the selling movement aud their buying 20
cover had considerable 10 do with toe tate
rally. There was an opinion prevalent that
some large financial Interests We're Cnictly
taxing advantage Of the low level ct prices
10 nick M stocks without making any at
, tempt to support prices. hut this cpiui9n
. Is hardly consistent with the glngerly man
! ner In which prices were hid up after the
selling pressure had relaxed with n palna'
bic Naturalization to secure stocks, The
selling for London account, which was
, suppOsed to originate In Berlin was q
factor of considerable Importance which
was probably not sufficiently allowed fol
IN current estimates Of the market
The reports Of further banking tcouhie'
7: In Berlin did not seem 10 have any stNHua
y eject on sentiment here. Tho suspension
q ~ the Seventh National hHnk came as
surprise after the tldIng over of its az
the dny before. ne II was generally sup
posed that friends Of the bank would sup
b ply sufficient resources TO carry T. through
The worst effects of the estimate Ind heci
discounted on Tuesday during the perio,
i Of suspicious conjecture, when runners we're
. / rife Of far extended banking difhruiticS,
s., The disclosures since made of the bank
|. nfaiis and the character Of the securiuo
}, which had involved II IN Its dificuluc
served TO give some confidence tlnt TN
=. trouble was localized, as those eocuritir
were not dealt IN ON the exchange md arr
not widely distributed, The incident va
found, nevertheless, tn create IN unplcas
, ant impression and served TO Intensity to
pinch in the money market incident so III
II turn OF the half year. There was II con
siderable shifting of loans, partly on at
.. count Of the throwing out of unsatlstl'
tory collateral for call loans rho en-
loan rate ran up 70 - per cent VITA I'M
70 substantial recupCration In prices of tan,
y ard securities since the main panic IN
fact has rather been lost sight Of, tina
u such q period Of speculative confidence I'M
Imitation as eliminated then Ia bound {
80 leave It's residue Of doubtful ~"curtlC
which might be as marketable In reriO
a NJ expansive confidence, but would he
drag on the market IN duietrr times.
c; The market closed dull but drm Ut n
% recovery.
There WAS some selling Of rlilr0rl hone
In sympathy with stocks but other NOR
gage Issues advanced Total sales, pt
~ Ialne, s., pos. COO,