Show stocks dropped on news of bank failures new york dec 18 the news ot the insolvency of important chicago trading institutions came with a great shock to wall street this morning and convulsive liquidation of stocks sent down early quotations opinion before the opening indulged a hope that the effects would be moderated by steps taken by the chicago clearing house banks to stand together and insure depositors against loss but the opening of the market quickly disclosed a panicky condition due to the over of holdings of certain tor any price they would bring the acuteness of the effect produced was due to the very large extension of credits known fo exist in every direction and the comparatively low state of bank rescues a condition which has been looked upon with serenity so long as there was soundness of credits and no shadow on them the position being a delicate one tha shock to the stock market was severe the persistent speculation which had been conducted there has ignored all the admonitions of high money rates and all conservative warnings 0 caution in operating the speculative position as a consequence was found somewhat overextended over extended the newa had not reached london in time to affect prices of americans greatly there although prices were lower there in common with other securities before this market opened the first sale of amalgamated reported on he tape were of shares at simultaneous prices all tha way tiam to as l anal price of saturday af pf there were shares the opening at 34 3 4 to 12 1 2 compared with 38 3 8 on saturday in brooklyn transit the range of shares was from 88 12 1 2 to sa 12 1 2 compared with 90 14 1 4 on saturday besides these extreme cases thero were losses all through the list ringing from 1 to 3 points sl paul reading new york central lead and others of the recent speculative favorites being among the severest losers there were some further plunges during the first few minutes and then determined supporting orders began to make themselves felt the market was enormously active during tha greater part of the first hour but by that time e liquidation had spent its force ij there were some alda recoveries amalgamated copper rallied to 09 18 1 8 and improvements of I 1 to 2 points were quits numerous the correspondents of the chicago national in this city first national bank and the phoenix national bank at the ehst national bank it was aid said s that the chicago national has a large balance to its and that the account was regarded as one of the very best held by the local institutions an official of the phoenix national bank said that the chicago national has a credit balance j with it of more than rep of the equitable trust company were somewhat embarrassed at the failure of the chicago i eions on account of the names and issued a statement to the effect that tha equitable trust of new york has no I 1 connection with the equitable trust company of chicago the walsh institutions were regarded heie as political banks mr walsh was a familiar figure in this city and it was known that he had been pressed tor money during the year the chicago national bank gave special attention to collections from out of town while the equitable trust company of chicago was widely advertised as the only exclusively trust company in chicago the direct cause of the failure of the walsh institutions 3 attributed here to in the affairs of the southern indiana railway company which he controlled this railroad traverses a district which is said to be rich in coal marble and granite not long ago lunk cri leport walsh tried to sell some or of bonds ot this company for the purpose of ox lending the southern indiana into illinois his failure to sell the bonds was the cause of much comment here and at chicago at the time |