Omaha daily bee., 1905-12-19
NEW YORE STOCKS AND BONDS
Market Thrown Into spasm Of Fright by
Chicago Bank Failures.
HOLDINGS UNlOAeEO At LOW FIGURES
Panic AVerted by Prompt support
by Spectators and Part
of the Loss IL RE-
covered.

NEW YORK, Dec. ls-The news from
Chicago this morning practically wiped the
stock market slate clean and gave a new
basis to start from. The failure of three
important banking institutions in Chicago
came as total surprise to Wall street
SO tar as any previous development had
indicated. The stock market was thrown
into spasm of fright ana the appearance
OF the market al the opening sufficiently
holders to get rid of their stocks at any
price. Various orders to sell l,O0y-Sharc
blocks OF Amalgamated Copper came to-
gether to an aggregate of over l0,O0O shares.
part OF them being sold at 100 and others
simultaneously all the way down to SSta.
This was the extreme example of the
effect of the news on the Stock exchange,
although there were very wide openings on
running sales in Union Pacific, Brooklyn
stocks at severe losses. In the curb market
United Copper in which the speculation has
been very active recently, sold at 6S, then
abruptly slumped to ~. These disastrous
effects in prices were due in "a large meas
ure TO the extremely heavy stop loss orders
which honeycombed the market at level
slightly below Saturdays closing. The
orders in such cases are to sell stocks
at any price In the event of the market
falling TO given point and the resulting
avalanche Is sure to gain speculative force.
Ihis being the case. 1t was perceived that
prompt measures were required to avert a
panic. Enormous support was accorded the
market and the demoralized sentiment thus
allevia ted. There was "a secondary wave
OF liquidation made up in part of belated
orders in the market by outsiders and in
part by those who were able to withhold
their selling during the opening period
when there WAS practically no demand
The market ebbed and flowed over n
lesser range during the latter part of the
day, but the principal liquidation seemed
to have spent its force and the most
damaging part of the losses was recovered.
1t was evident that the aggravated effect
produced by the incident was largely due
to the overwhelmed condition of specula-
ton. Successful spectators have been re-
investing their profits In new purchases OF
some OF the very volatile stocks. which
makes a very insecure condition in the
market. During the latter part of last
week some misgivings began to be percep-
tiblc already over the conditions resulting
from some of the most violent specula-
ton. This added to the vulnerabiiity of
the market.
As to the immediate financial conse-
quenccs of the Chicago mishap the prompt
measures taken by the Chicago clearing
house and the insurance against loss of the
depositors of the banks gave strong hopes
that the consequences would be Localized
and restricted. There was nothing to show
that any New York interests were affected.
The stock market view of the affair was
founded more upon the possible eHectS
Of the failures upon general business CON
fdenCe and the standing of credits. Cred
its are heavily expended and bank re-
serves are low and the persistenCN Win
which the consequences of the state OF
affairs are ignored. especially the high
rates for money, is due to the universal
confidence in the soundness of these out
standing credits. The shock now given to
confidence arOuses a dread that some con-
traction of credits will be forced and the
extension of enterprise hampered by sus-
piCion of the soundness of the business
fabric. Money continued strong in this
market. but eased off later in the day in
spite of remittanCes to Chicago. Foreign
exchange was also strong for remittance
by the last steamer available for end-year
payments abroad
| Bonds were heavy. Total sales, par
value $321O,OOO United States new is
declined Is per cent on call.
The following were the quotations on the
| New York Stock exchange: