The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1899-09-17
/ IS A DEA()RALHER
Bank Statement Hits the
Stock Market Hard.
FRANTIC RUSH TO UNLOAD
Market Closes With Every
thing on the Ioboggan.


were a special mark. seemingly on the
theory that they had not responded ade-
uately in sympathy with Brooklyn Tran
sit. Metropolitan slumped an extreme
I41-2 points and Manhattan 6. Brooklyn
| Transit itself was somewhat relieved from
| the recent severe pressure and held firmly
at S. or above through most OF the storm
I in the late market The other Flower
stocks were fiercely attacked. Peoples Gas
dropping nearly 4. Rock Island IA, and
Federal Steel / IL Sugar fell al extreme
AIS and Tobacco 81. Losses elsewhere
! in the specialties extended between and
/ points in numerous cases St Paul SUI
/ fered from continued liquidationtion, even
/ before the late break. and after the bank
: statement appeared it dropped an extreme
/ d 81 10 rs Many railroad stocks fell
point or over. The violent declines invi-
ted the taking OF some quick profits oy
the bears, which caused feverish rallies
I Is Metropolitan. the rally reached over
points But the tone Of Lhe speculation
az the closing was completely demorahzed,
( and prices in many cases we've stu being
offered down rapidly in the frantic efforts
/ Of holders 70 unload .
( The losses in cash by the banks for the
} week were over 81. O00 coo less than had
/ been foreshadowed by the movements, but
on the other hand a contraction in loans
; had been expected TO reach as high as
! So. 600. 600 according 20 some estimates. As
the return showed a reduction Of only
+ 81. S54 100 in loans, the net result brought
the surplus reserves down TO within about
a quarter OF a million dollars OF the legal
requirement.. Stocks held or margin and
with borrowed money have been forced 70
sale in large volume during the week with
resulting raids upon the market prices,
reaching a considerable figure in some
cases. Last Saturdays bank statement
showing reserves Of number OF the
! clearing house institutions already below
their legal limit. made it certain that
there would be loan contraction. The
bears were eager 70 anticipate the sell
ing which was in prospect. Rates for
call loans wire marked UP on Monday and
/ Tuesday by reason Of the eager bidding Of
would-be borrowers who were seeking 10
( shift loans which had been called. The
volume OF liquidation indicated clearly
+ enough that many were unable TO get &C
! But when the demand from shorts vas
satisfied ne market fell back. The reac-
tionary tendency was emphasized by the
refusal OF the St. Paul directors 70 ex-
tend the disbursement Of the large sur
plus earnings of the year beyond the reg
ular dividend rate. The decision was cal
culated 10 have the more effect on the
railroad stocks since many stocks have
been lifted on speculative buying based
on expectation Of increased dividends. Few
Of these stocks can show as large a sur
plus Of current earnings at s.. Paul. and
many are in far more urgent need Of ex-
Penditures on structure and equipment in
order to increase the operating efficiency.
The annual report Of nearly every i'm
portant railroad that comes 20 hand con-
tains the came story OF diminishing rates
for transportation. Ton-mile revenue was
never so low before and Is still declining
and the further reductions n ton-mi;e cost
OF operation thus made necessary IS only
20 be achieved b. enormous outlays q
capital for improving roadbeds and track
equipment and structures. cutting down 4
grades so ar 10 make possible the car
ry,ug OF heavier train loads. The relaxa-
ticn OF the monty stringency after the
banks had reduced their liabilities on &C
count of loans led 70 an optimistic mid
week view OF the money outlook. which,
however. was not long maintained 4
somewhat exaggerated effect was rro-
duced on eenu1nsnt ~ the decision y th-
treazlIy department . anticipate ire P3y-
msrt ct October Interest on gov IT.
men: lords Last years experience IN 4
similar period OF trek market aezd ot
money. demonstrated that hoI5e-s o. Gov
eminent bonds we're not inclined 20 avail
themselves Of The offered privilege. The
relief. az best would be small aas = not
Immediately available. With continued
demand for cash in sight. both from ~
treasury and from interior money c>rters.
10 source OF replsnFhme1t e discernib,e.
Bankers, II fact. express themselves IS
wei content wi-h The existing rate for
money and are rot disposed % seek means
for tha relief az speculative borrowers.
The hold ne view that s check on und1e
speculation ard wedding cut OF weak
+ speculative accounts makes tar tire safety
% the financial tasric- The causes of the
fi-zness Of sterling exchange. wi,h mercy
rates II New York FAR above tae LONDON
level and q supposed credit baIsnce IN ou-
favor % many millions does rot End
very adequate sTp-austioa- There are
sad 20 Dc large receipts from abroad -
securities. bit selling from that soz-cs
has mt beer f. evidence through the e
usa- agencies F9reiga houses n Nv
To-k have lent usaeY here surszx che
week The purr7sz zay 5e 20 z>ze ths
money rate ard 80 defer ths prszss1r oz
z-ons0u to- god uztil th@ Trzrsyaal crisis
Ess resolved !tseF f. sorne wav TIE
movement q cstt57 r backward and ehsrt
sellers - sterling against expected cst-
tan bills have kept I'd ne exrhang- rate
VITA = demand 20 cove-- These cages
can o2e-z-e only temporarily 20 keep u9
TIE exchange rsts H'it sor t5s prses--
ssrp5as zon~Y f7- steele market operations
- not r sigh
B11-s have moved = sympathy -th
stocks. Bat 3os ~ Eisesy. Tai--d ssz.eE
IS advanced - = rs - grtoe
FaFef-z stocks -aa HsseT.
%e~ T1-k- So Is-[1z1-serezzt A.
v--~seza-sz r~-gs-- A~z-rser z.r------