FINANCIAL REVIEW OF 1893. 



299 



feverish and lower in July, and during the first 

 week the Incurs took advantage of the fact that 

 the issue of $21,<;i>:>,noo Clearing House loan 

 crrtiik-ates thus far exceeded by $5.020,000 the 

 amount of those issued in the Baring panic of 

 1 slit i. and it was represented that this indicated 

 that the situation was very grave. Early in the 

 second week of the month the news of the failure 

 of the London branch of a large Australian 

 house, and a vigorous raid upon General Elect ric 

 ami demonstrations upon all the leading stocks, 

 kept the market in a demoralized condition until 

 near the close, when there was a rally. In the 

 third week the suspension of the Schlessinger 

 ore syndicate directly affected Chicago and 

 Northwestern, and during the entire week there 

 was quite general liquidation of all leading 

 speculative stocks, and more or less free selling 

 of many of the first-class investment properties, 

 the market experiencing a still panic with a 

 gradual shrinkage of values regardless of in- 

 trinsic merit. The special influences operating 

 were runs upon banks in the Northwest and the 

 placing of the Erie in the hands of receivers. 

 In the last week of the month the tendency con- 

 tinued downward, affected by activity in money, 

 vigorous bearish demonstrations, the failure of 

 two stock houses in New York, of the Mitchell 

 Bank at Milwaukee, and of institutions at In- 

 dianapolis, Louisville, and other parts of the 

 country, and the market was weak until the clos- 

 ing days of the month, when there was a partial 

 rally, caused by news of the shipment of $1,500,- 

 000 gold from London to New York. The most 

 important declines for the month were : 20 per 

 cent, in Sugar, common, 14J in the preferred ; 

 , 10 in Atchison ; 16 in Central New Jersey ; 

 30| in Chicago Gas; from 11| to 17 in the 

 Grangers ; 21 in Manhattan ; 31^ in General 

 Electric; 14J in Louisville and Nashville; 13f in 

 Northern Pacific preferred ; and 9f in Western 

 Union. There was almost a complete revolution in 

 the market during August. It was influenced in 

 the first week by the shipment of large amounts 

 of gold from London for New York, by a sharp fall 

 in wheat in Chicago, and the collapse of the pork 

 and lard deals at that center which promised lib- 

 eral exports of those staples. These events brought 

 about a covering of short contracts in leading 

 properties and buying for the long account. 

 Congress assembled in extraordinary session on 

 the 7th. The message of the President, setting 

 forth that the object of assembling Congress was 

 to secure the prompt repeal of the act of July 

 14, 1890, which required the purchase of silver 

 bullion, was promptly followed by the prepara- 

 tion of a bill for that object by the House Finance 

 Committee and the agreement by the Democratic 

 caucus upon a plan for the consideration of the 

 measure. Although the movement in stocks 

 was irregular, due to the renewal of raids by the 

 bears and to more or less important failures 

 throughout the country, the tone was generally 

 strong during the second week, and the favor- 

 able influences were comparatively easy rates for 

 money on call, receipts of over $ 14,000,000 gold 

 from Europe, and an important increase in na- 

 tional bank circulation. In the third week the tone 

 was irregular and lower, caused by the unfavor- 

 able condition of the banks, as shown by the 

 statement, indicating that the gold which came 



from Europe had gone into the savings banks 

 and trust companies instead of into the deposit 

 banks. One feature was a fall in the Northern 

 Pacifies caused by the placing of the road in the 

 hands of receivers. There were vigorous attacks 

 upon General Electric, the Grangers, Sugar, and 

 Chicago Gas. After the 16th there was a partial 

 recovery due to rebuying to close short contracts, 

 and the improvement in the general market was 

 gradual, although there were occasional periods 

 of depression, until toward the close of the month, 

 when there was a very decided advance caused 

 by indications that the Wilson repeal bill would 

 pass the House. News of the majorities against 

 free coinage at the various ratios of from 1 to 

 16 up to 1 to 20 had a stimulating effect upon the 

 whole list, and the market was buoyant on the 

 28th, when the Wilson bill passed by a decided ma- 

 jority. Thereafter to the close of the month the 

 market was strong. There was a further marked 

 improvement in the general situation during the 

 first half of September, which was reflected in 

 an advance in the stock market. Failures were 

 less frequent, some of the banks which had sus- 

 pended resumed business, cotton and iron mills 

 started up, the premium on gold and currency 

 disappeared, exchange was restored to a normal 

 condition, and confidence began to grow in the 

 belief that the Senate would speedily act upon 

 the repeal bill. The outlook was encouraging, 

 and the market was quite strong until the 13th. 

 when there were indications of a withdrawal of 

 support by bull combinations who had marketed 

 their lines of stock, and then came bearish dem- 

 onstrations and free selling of Union Pacific, 

 General Electric, and Chicago, Burlington and 

 Quincy, on reports that the holdings of Mr. Fred- 

 erick L. Ames, who had died suddenly, would be 

 thrown upon the market. This was followed 

 by an upward reaction in these properties, but 

 the movement was irregular and lower after the 

 15th, and it felt the effect of the delay of the 

 Senate in acting upon the repeal bill. In the 

 last week the market was irregular and gener- 

 ally heavy, influenced by a rise in exchange to 

 near the gold-exporting point, by the obstructive 

 tactics resorted to in the Senate to prevent action 

 upon the repeal bill, and by more or less vigor- 

 ous bearish demonstrations. The tone was ir- 

 regular at the close of the month. The move- 

 ment was dull and almost featureless during the 

 first few days of October, and about the only 

 really active stock was Lackawanna, which ad- 

 vanced 10 points on a manipulation of the short 

 interest in it. Thereafter until the middle of 

 the month the speculation was more active and 

 prices lower, and there was free selling of Union 

 Pacific in anticipation of the appointment of 

 receivers, and on the 13th this event occurred. 

 About the only strong stock was Hocking Val- 

 ley, which advanced on the news of the decision 

 of the Burke suit in favor of the company. In- 

 fluenced by the prospects for a speedy ending 

 of the debate upon the silver repeal bill in the 

 Senate, the market improved in tone after the 

 16th, and the feature on the 28d was a rapid ad- 

 vance in Lackawanna on the announcement that 

 40.000 shares of the stock had been transferred 

 to Mr. W. K. Vanderbilt. It was at first sup- 

 posed that this was part of a plan for a new coal 

 combination, but later it appeared that control 



