The Providence news. (Providence [R.I.]) 1891-1906, 1905-12-18

SHOCKED
WALL. ST.

New York, Dee. 1S-The failure OF the
Chicago National Bank and its two anil
lated institutions came as a shock to the
banking community OF New York, all
though II was known that Mr.. Walsh had
been pressed for money during the year
The correspondents of the Chicago Ma
tional Bank i'm this city include the First
National Bank and the Phoenix National
Bank
At tho First National II was said that
the Chicago National has a very large
balance To it's credit and that the account
was regarded as among the very best
held by the local institution. An official OF
the Uhenlx National Bank said that the
Chicago National has "a credit balance
with IL OF more than $4,000
Representatives. OF the Equitable Trust
Company hero were somewhat embarrass-
ed at tho failure OF the Chicago institu-
tion Of the same name and issued a
statement that the Equitable Trust Com
pany of New ork, has no connection with
the Equitable Trust company OF Chicago.
The Walsh institutions were regarded
here as political banks.
Mr.. Walsh was a familiar figure in this
city. The Chicago National Bank gave
special attention TO collections from out
OF town. while the Equitable Trust com
ldnN OF tllCdRos was WluelN auNfTuSeu
as the only exclusively trust company I'm
Chicago
The direct cause OF the failure OF the
Walsh institutions is attributed here to
Walsh's activity in the affairs OF the
Southern Indiana railway. which he con-
trolled. This railway traverses "A district,
which il sail 20 be rc. I'm coal marble
and granite. Not long ago Banker Walsh
tried To sell some 100000 or $G.G0010
bonds of this company for the purpose of
| extending the Southern Indiana into IL
| linois. His failure 60 sell these bonds WAS
| the cause OF much comment here and at
| Chicago at the tie. The news OF the insol-
| vency OF important Chicago trading insti-
| tutions came with q great shock to Wall
| Street this morning and convulsive revo-
| lutions or stocks made Wild work of early
| quotations.
The opening OF the market quickly dis
| closed a pancky condition due to tho
| throwing In Of certain stocks for any price
I they would bring. The acuteness or the
! effect produced was due TO the very
! large extension of credits known TO exist
! i'm every direction and the comparatively
! low state OF bank reserves. The position
/ being delicate the shock 10 the stock
! market was severe one The persistent
! speculation which has been conducted
| there has ignored all the admonitions OF
| high money rates and all conservative
| N''' i'i4ieE w 'ihAi'l III operating. L nc
| speculative position as a consequence was
! found Sxmewhat over-extended.
! The first sales of Amalgamnted Copper
/ reported on the tape were OF 900 shares
! at simultaneous prices all tho way from
! 100 down 10 93i2. compared with 10l for
] the final price on Saturday. OF Union
! Pacific there were 1900 shares sold at
! the opening al 1924 To 1ilia compared with
/ l44ss on Saturday. In Brooklyn Transit
! the range on 1000 shares was from SSi9 Ia
! hls, campared with s0A on Saturday. Be
| sides these extreme cases there were
! losses all through the list ranging from
! ! to 3 points, 81. Paul. Reading. New
| York Central, Lead. and others OF the
| recent speculative favorites being
| amongst the sevcrest losers.
There were some further plunges dur
/ ing the first few minutes and then de-
! termined supporting orders began TO make
| themselves felt The market was cnor-
mously active during the greater part 3f
| the first hour but by that time the liquid
! alton had spent it's first fury and there
were some wild recoveries. Amalgamated
! Copper rallied TO 99is and improvements
Of from l TO points were quite numer-
| Gus