The morning news. [volume] (Savannah, Ga.) 1887-1900, 1899-09-12
BANKS FORCED LIQUIDATION.
Reducing Loans to Lessen DeposIt
Liabilities Affects stocks.

Liabilities Affects stocks.
New York. Sept. 11.-Forced liquidation
was in evidence all day on the stock eX-
change as the consequence of efforts Of
the banks to reduce their deposit liabili-
ties by reduction of loans. Saturdays
bank statement revealed the fact that the
surplus reserves were approaching eX-
haustion. with the imminent prospect OF
inroads being made upon the legal reserve,
having prepared the speculative public for
some such development. The continued
demand from interior sources for money
and payments for taxes into the sub
treasury to-day confirmed the expectation.
The market went down under successive
floods of offers Various times during the
day the pressure of selling seemed to nave
exhausted Itself. The rally in prices AT
such time was feeble. and the trading
became very duh the demand for stocks
being at a minimum
The standard stocks in the market sut-
fered in an equal. degree with the more
speculative Industrals. This feature was
doubtless due in some part to the recent
dissemination on the part of money lehd-
ers to accept the Industrials as collateral
for loans II was, therefore, the stand
ard stocks which were thrown upon the
market by the calling OF loans ASIDE
from few of the iron and steel STOCKS
which have been under recent mahlpuia-
lion for rise, the largest losses or the
day are in such stocks as the Changers
and trunk lines. There were a few spots
In the railroad lists that were relatively
Arm notably Louisville Southern Pacific,
Union Pacific and Northern Pacific.
The hears seized the opportunity OF the
prevailing depression to put out extensive
short lines. Brooklyn Rapid Transit was
a notable sufferer and was raided dowh
10 within a quarter of the recent low
leve, and within a half OF par. ne
stock closed only a fraction above the
lowest Metropolitan was also acutely
affected and lost ~ on the day. Tennes-
see Coal and Iron Fuel rose in the early
dealings, but fell points below saturday
level. Sugar was only slightly aftected.
American Steel end Wire, Republic steel
horn common and preferred, Tin Plate pre-
Gerred Continental Tobacco. Pullman, Ma
tional Steel Manhattan and Peoples Gas
were especially weak. The net losses on
most Of The active railroad stocks range
between / and 2 points. The quotations
for odd lots ranged above fuL lot quota
tion in most cases. indicating the pres
ence OF bargain hunters during the de-
cline. The market totally ignored the ten
dencv 10 recovery on foreign stock mar
kets. although London bought some 2O'OJO
shares in the early dealings.
can loans were made at 5h per cent
soon after the opening. but quickly rose
10 ard then to and even per cent.
dropping 20 5 per cent. after the days
needs had been practically all met Pos
sible measures Of relief FOR the money
market were the subject Of discussion IN
All circles. The leaving on deposit Of
payments for taxes Is considered the most
available relief. and the prezence in
washington Of an influential financial
leader was generally believed % be with
the object OF urging such 4 measure. The