New-York tribune., 1908-01-08
DIAMONDS NOW A DRUG
TR1DE UNUSUALLY DULL.
Money Stringency Held Responsible
for Present Conditions.

Through the appointment on Monday OF lq'1idat-
ing trustees for Joseph Frankel sons. Joseph
FrankeI Sons Company. z. ~ Cattle Il Co. and
Cattle. Ettinger Hammel. four leading diamond
firms. of this city. there Is revealed the most
unfs brable condition that has existed In fne
diamond business for several years The faliins on
In the volume of business transacted IN dlanonos.
and. that matter, in al precious stones. amounts
to fully 30 per cent The drop in the importation
of diamonds in December last. compared with tas
corresponding month OF 1896 was nearly Sp"ess-
There is practically business being done oy 'ns
importers and wholesalers here. and half or more
of the diamond cutters and polishers are onens-
pIoyed Many millions OF dollars are repre-
sented In the diamonds held by the dealers IN tas
city. The situation. which is directly taceAo.o
to the financial condition OF the country. IL -
feared will result in further difficulties. ai1nousn
no absolute failures now expected oy tne raoe-
The plan OF the four concerns. which VIII Hqu-
date their stock for the benefit Of their cFeuieos.
was known among houses in their own Hns U
business a week before Il was made PUBIC NOE
did il cause great surprise. with their assets
81 coo more than their liabilities. kesldes tne
orivate fortunes of the individual members OF the
corporations II was said that the larger the con-
Germs are the more likely they either to han-
date or obtain credit extensions. and more sue"
cases expected
One small failure was reported yesterday IN ths
wholesale jeweiry business II was that OK LOUIE
Eitsenhauser at No. At Maiden Lane, against
whom there was petition IN bankruptcy dlso oT
L. & B. Lehr and others Robert l. HARRISON wa
appointed receiver II is expected IN the rs0e'
however that the FrankeI and Cattle corporaticns
will continue in business heretofore at the sx-
pration OF the term OF eighteen months liked for
their liquidation Those IN the trade express the
opinion that long before that time business WIZ
have resumed It's usual condition About the only
business that is being done now Is on goods for
immediate sale but most OF the firms have rnsfr
stock locked away in their Safes and the sales
4-ra>N NoTrf rfv~w
the trade for special orders Diamond dealers
ard importers were. however. unanimous In this
declaration that the present depression would noe
cause reduction in the price OF the gems
Notwithstanding the general impression" said
a large dealer yesterday. I'VE do not make very
large profits on diamonds That is, not h COM
parisou with those realized in other lines OF COM
nlerce. We average about 10 per cent interest On
our stock. But diamonds different from other
natural products manufactured goods In rhs
first place. they cannot deteriorate. nor can their
value be affected by a change in styles And
what is OF course most important the dtamond
output is controlled and regulated by one gigantic
syndicate. which will not permit Overstoeing The
De Beers syndicate is now refusing to sell any
more rough diamonds for at least two months
The banks cannot loan as much money now as IN
more propitiouss times. and we are compelled cG
lock up our stock and wait for Improvement
But We cannot afford to cut the prices We
merely have our profits deferred. and we lose the
penses on
The diamond business was one of the first to
be affected IN October by the financial depression
But the full force Of the unfavorable conditions
for the purchase Of such expensive luxury was
not felt until Christmas That usually busiest OF
all seasons was last month very dull and unproft-
able The sales OF large and costly pieces were
few, and the dulness felt by the retailer.
wholesaler and importer alike About % per cent
Of all precious stones imported are diamonds The
import figures ali these for 1896 and 1897 show
a falling on the latter year OF 81. .soo, +i3
One Of the contributing 10 was said yesrer-
day. of the liquidation Of the Joseph Frankel Sons
Company was the possession OF the famous Hope
diamond valued at S25o Geo. which has been Just
that amount of dead capital for the frm could
find no purchaser for IL. The firm imported this
stone, which weighs Al carats. several years ago.
Mr. Frankel bought Il from the Hope heirs Deal
ers In Maiden Lane said yesterday that the general
impression was that the four concerns whose as
sets are to Equidated would continue In busi-
ness The FrankeIs, IL learned. have large
real estate interests. One OF their holdings Is a
twelve story office building now being erected az
John and Dutch streets. and another Is be1ldtnS
In Fifth avenue
One other phase of the stagnant diamond market
Is the pawubroking interest The pawnbrokerss
even the largest Of them. refusing 70 loan
large amounts on diamonds which heretofors has
constituted the chief part OF their business For
rnerly diamonds could be pledged FOR fully half
their value Now the pawnbrokers Will offer about
so0 On a diamond valued at 81 coo. This Is not be-
cause they fear slump IN prices. but IS on ac-
count Of the decreased demand for the stones.