The times., 1899-09-17
STOCKS Still FALLING
An Adverse Bank Statement Shat
ters Opening Prices.
Metropolitan and Manhattan shares
Yield 10 Pressure, Followed by st.
Paul and Peoples Gas - Brooklyn
Rapid Transit Resists the Move
ment The Industriais Weak.

NEW YORK, Sept. 16-The speculative
holders Of stocks have experienced rude
awakenings this week. The market values
of ali securities, particularly those selling
al high prices. have undergone a change in
consequence OF the rise in the rates Of
money. Not only have prices changed, but
loans also have baen readjusted to conform
TO new monetary conditions. This has ne
oessitated extensive liquidation, and rs all
OF the local traction stocks have for a long
time past been selling at figures not war
ranted by returns received from them. the
shrinkage has been more pronounced in
them than in any other group. The argu-
ment was advanced today that those stocks
had been sold extensively because of the
legislative Investigation that is to be made
shortly as TO the value of their franchises
for taxation under the new franchise tax
law No such explanation of the decline
in them is needed. Insiders have doubt
less realized for long time that the pub
lie demand for the local traction shares
had carried all of them 10 figures that
were in excess of their intrinsic value, and
II would be astonishing if they have not
taken advantage OF an opportunity TO dis
pose OF a large proportion of their hold
l4ee- lut pUDilC - now ColIptilSu ~ luS
condition OF the money market to realize
what the manipulators of these securities
recognized when they marketed their hold
ings. At some price the insiders will con-
slider their wares cheap enough TO repur-
chase them, and then the decline will come
10 an end and the basis for q fresh upward
movement will be prepared
When business was resumed this morn
ing there was a disposition on the part o.
.1.as1- -. -
tracts They were especially induced to do
SO by the sudden demand for Brooklyn
Rapid Transit, which lifted the price OF
that stock Ia points above the final price
OF yesterday But simultaneously with the
recovery in Brooklyn Rapid Transit weak
ness developed in Metropolitan Street Rail
way and In Manhattan Railway. From
these it spread TO the iron and steel stocks
and then to the granger shares. The pub
lication of the bank statement showing a
surplus reserve of only 1915, ,450, was the
signal for urgent selling throughout the
whole list. During the last half hour
values melted away rapidly, and the clos
ing was very weak at the lowest prices of
the day and week The course Of the mar
ket naturally started fresh liquidation, and
as it is evident that the banks will have TO
contract their loans still further TO meet
the demands that their depositors in the
interior are making on them. The senti-
ment of the street at the close of bus ness
was far from cheerful.
The bank statement does not show as
large loss Of lawful money as had been
estimated, by one and half to two mil
lions. The reduction in loans was also
much smaller than had generally been ex-
pected. The decrease in the deposits IS
about one and a quarter millions larger
than is called for by the two changes first
noted. The banks now have practically no
surplus reserve. They viii, of course, in
their immediate operations, have TO draw
upon their reserves, but to what extent re-
mains TO be seen In The mean time the
rates for money may compel the settlement
OF part of the Indebtedness due this coun-
try by Europe.