Evening star. [volume] (Washington, D.C.) 1854-1972, 1899-11-10
Heavy Liquidation Starts Bear Raid
in Stocks.
FEAR OF MONEY SfRINGENCY
Earnings, However, Continue to Be
Very Satisfactory.
GENERAL MARKET REPORTS


Special Dispatch to The Evening Star.
NEW YORK, November 1o-Fears of a
money stringency were again the dominant
influences in today's stock market. Liqui-
dation, some of it urgent, was in progress
throughout the morning, and traders helped
the decline by a plentiful selling of short
stock. Estimates On tomorrow's bank state
ment were generally unfavorable, the PROC
able loss in cash being put down at 5000
600. A decrease in deposits is also expected
and should both predictions be verified the
deficit in surplus reserve holdings will be
increased.
Whatever the statement may show, how
ever, the actual condition of the money
markets should be sufficiently well under
stood by this time to prevent any hasty
market action. Bankers were Indifferent
TO last week 5 statement and saw no rea-
son why reserves should not be freely used
i'll the face of a profitable demand. 1t has
only been few weeks since the banks be
gan to get a comfortable return for their
advances, and many of them are not
anxious to see a return of the Cd order of
things. in which the borrower to Il consid-
cradle extent dictated the terms.
There has been no evidence of a CONNER
claI money Strngency, banks having taken
care OF their mercantile depostors who
needed money in their legitimate business
enterprises. The trader on small margins
anu the Unjust rlai STOCK operator the
principal sufferers from a condition in
large measure due to their own unthinkiug
efforts last spring. At that time money
was lending at unusually low rates because
the revival of business was more or less in
the contract stage
Orders were being placed on a large scale
then, but now deliveries are being made on
an equally large scale. The real owners Of
the money which had accumulated in New
York have drawn it to meet the obligations
which in the preliminary stages caused
the discounting process to begin in Wall
street on the borrowed capital of the men
responsible for the activity in trade The
process is natural. and since the speculate tor
had no reason for expecting more than a
tranSitory interest in this capital his dfsap-
polntment IS an admission of bad judg-
ment.
When the profits to the merchant and
manufacturer reach the surplus stage they
may be returned to New York and helm
swell the bank reserves. Until they do
any strengthening of resources must come
through reduction of liabilities.
For a month past bankers have been pre-
dlctlng this return movement, but each
week there is disappointment.
Perhaps risks undertaken with the idea
that cheap morey Will be delusion during
the balance Of the year may cause the
least concern
There is no decrease in the uniform evil
dences of prosperity. St. Paul reported an
increase of $l19, $40 in earnings for the first
week this month, but no attention was paid
to the announcement. From every section
similar good news was received, but with
out attracting much comment
London bought LOCO shares of stock dur
ing the morning, but this evidence of con-
hdence was passed over. The new steel
and wire combination was discussed but
the market was said to lack the sympathy
necessary to the present success of the
deal. Final trading was mixed in char
acter, but represented fair amount of
covering by traders.