Democratic Sentinel, Volume 14, Number 44, Rensselaer, Jasper County, 28 November 1890 — CRASH IN WALL STREET. [ARTICLE]

CRASH IN WALL STREET.

PANIC AMONG THE HOLDERS OF VILLARD SECURITIES. Decker, Howell A Go. Forced to the Wall —Rapid Decline in Northern The Clearing House Comes to the Rescue ot the Banks—Scenes of the Wildest Excitement. [New York dispatch.] Not since tho dreadful time of Black Friday, twenty-one years ago, have there been such sad fortunes, such disastrous sacrifices, such utter demoralization as to-day. There was a panic. Quotations fell to pieces like the scattering blocks of a baby’s upset toy-house. The bravest man was generally displaying his bravery in demanding margins from soma speculating unfortunate, or in notifying some other unfortunate that, lacking margins, he must submit to being sold out. Courage was at a discount, confidence was nowhere. While real failures were taking place on the Stock Exchange a lot of fictitious ones were being proclaimed throughout Wall street by rnmormonaers, who quoted the names of conspicuous banks as being unable to maintain their credit. The current sensationalism, so far as tho banks were concerned, had much more invention than fact in it. Yet there was undeniable apprehension in banking circles. Bankers would not admit this freely, but early In the day there wereconferences among representatives of clearing-house banks, and tho banks of the New York Clearing House Associa-. tion determined to provide against every possible misfortune and exigency by pledging their associated credit in behalf of every bank in the association. The associated banks of New York have available assets of $95,000,000. Against this it was voted to issue clear-ing-house certificates in such volume as the situation might suggest or require. Aa a measure of relief the bankers who resolved upon it are confident that it will at once be effectual. There is almost universal agreement among leading New York bankers that the money-market’s recent range and tightness came through artificial influences. Funds have been locked up, taken out of ordinary business channels, kept out of reach —all in order to carry forward the bear campaign of depression, apprehension, and quotation smashr lng. The provisions of clearing-house certificates—unlimited, if need be, up to $95,000,000 —will, of course, put to rout all those manipulative schemes. Said a member of the clearing-house committee largely instrumental in bringing about the official action of yesterday: “Thisends the money-market trouble. Loan rates will be normal now. The pinch is over." When the Exchange opened this morning there was a larger attendance ot brokers than had been known for years. Every stock on tho list had a crowd of brokers trying to trade in it, and when the market opened the scene was one of confusion and excitement The cables reporting an advance of 2 to 3 per cent, in London were received before the opening and caused the brokers to take the bull side, aud a disposition to buy was shown all around. Rumors of trouble among banking institutions were current all day, but no one paid much heed to them, thinking that they were the usual emanations of bear minds. After the close, however, it was learned that three banks which were members of the New York Clearing House Association had difficulty in settling the claims of the other banks against them. There was a balance against the Bank of North America of $1,400,000, which it was unable to settle. The other banks were the North River and tbe Mechanics and Traders’. How the heavy balance was created against the Bank of North America was a puzzle. During the day the Mechanics and Traders’ Bank made its settlement with the clearing house all right, and the other two banks received assistance from the other banks in the association and pulled tnrough all right. At the Bank of North America it was said that the trouble was directly due to the account of Decker, Howell & Co., and that now that the account of that firm was closed, the bank was in a stronger position than ever. The most important factor in the developments was the scarcity of money. Right up to the close it was in urgent demand, and M per cent and legar interest was charged on loans, equal to 189 per cent, per annum. This fact and the troubles of tho banks caused a special 1 meeting of the Clearing House Association to be called, and after a long session it was decided to appoint a committee of Presidents with authority to issue clearing-house loan certificates in order to enable banks to settle balances between themselves. These certificates will be based on bills receivable, collateral securities, cash assets, and tho united credit of the banks. This action is intended to distribute tho reserves of tho banks more evenly between the institutions. Where one- bank is unable to settle its differences iii cash It will deliver securities and assets to the certificate committee, and if the committee accepts the securities it will authorize the issue of certificates on them. The united action of the banks is expected to restore complete confidence. It was just after 2:15 o’clock this afternoon that the failure of Decker, Howell & Co., of 44 Broadway, was announced on tho Stock Exchange. They made am assignment to William Nelson CromwellThe firm Is one of tho largest on the Exchange and was considered very wealthy. It had been identified for years with tho movements of tho Villard stocks and its members were generally considered Villard’s special brokers. The failure was considered the »!oak that had been hanging over the markot, and after it was announced a rally of 1 to 2 per cent occurred. In every teaspoonful of human bTcodt there are 15,000,000.000 red corpuscles, but only 30,000,000 white ones. The blood of clams, lobsters, and nearly alt other invertebrates contains no red cells but only white. The highest church spire in Ihe world has just been completid. It Is that of the cathedral at Ulm, Wnrtemburg, and is 530 feet high. The top of tho cross on. the dome of St. Peter’s, Rome, is 448 feet above the pavement. Seven years ago there was one brass band in the Salvation Army. It was composed of a father and his sons. Since then 8,550 other bands have been formed. A boy of 17 and a girl of IB were married at Columbia, Mo., tbs ether day. The wedding presents included a dolt and a wooden gun.