Omaha daily bee., 1901-01-04
MOVEMENTS OF STOCKS AND BONDS.
sudden Collapse of Inflated SpccuIa-
ttOn on Wall street.


NEW YORK, Jan. 3--The long expected
storm OF liquidation broke over the stock
market today and swept prices I'm n torrent
OF selling In downward course. which was
not erectually checked even at the close of
the market. There were wide breaches In
prices by that time and the pTecipitate
character OF the selling gave the market
me appearance of semi-demoralization
Spectators who were long of stocks showed
many or the symptoms of panic in their
the prolonged rise had indicated for them
ON paper. The market was so top-heavy
py reason of the vast number of accounts
on narrow margins which infested 4; that
tne ran IN prices gained momentum as IL
progressed. The wiping out of margins I'm
the race OF the value of stocks forced them
to- sell to prevent losses by the brokers.
whether any of the liquidation beyond this
was forced would be difficult to say. The
money market maintained a calm surface all
day, the call loan rate ruling at 5l9 per
cent or below that. There was n continued
shtting of loans, however, incident to the
enormous financial transactions involved I'm
tne yearly settlement and the disturbance
OF loans thus caused added to the unsettled
fe,giing In the stock market.
Inc aggregate sum called for by the
checks passed through the clearing house
banks today reached $3.50, 1872, ,005 which with
the single exception of yesterdays. is the
Nlous maximum by over Si5,000,0O0. There
We're various causes assigned to account
Tor the violent break. but all of them to-
gether would have proved inefficient to pro-
has prevailed in Wall street for many
weeks past. The real root of the trouble
was that faith in the level OF prices began
TO be impaired and conviction was borne
IN upon spectators that the large demand
Tor stocks which they have expected to con-
,tinue during January has been pretty
largely discounted. A realizing sense of the
tlmsy authority of many of the sensational
stories ON which stocks have been advanced
Woke In upon the minds of buyers, who
COMPOUNDED their own eager demand for
stocks with supposed all-embracing pub
~
stocks at the very high level attained by
prices and with very doubtful prospect of
large nddltional advance they threw over
thelr holdings with the utmost precpitancy.
Or the causes contributory to the slump
most Importance must be attached to the
advance In the Bank of Engiands discount
rate from to per cent. This was supple
mented by the statements of the three
great government banking institutions
rdo,Sao aDroad, showing a radical impairment of
resources on account of the requirements
IN the yearly settlements. At the same
time cabled reports from London described
result was IA sharp jump in sterling ex-
change rates In New York and growth of Il
belief that the New, York money. market
kets.
The. developments in the foreign trade
situation favor this hypothesis. Grain and
cotton bills have become scarce in the ex-
change market and the relapse In iron
prices abroad. while prices have been well
maintained in the domestic market, indicate
the continuity of falling off in the foreign
iron trade. Imports of merchandise are at
the same time on the increase.
The return to the money market and the
stock market of the large funds disbursed
here in the yearly settlements are likely
Judging from precedents, to be delayed
New York exchange at Chicago today sud
denly dropped from 10c premium to 2Oc dis
count. The heavy liquidation in Sugar had
n very unsettling effect on sentiment, as II
was commonly attributed to a well known
steel magnate who has made his mark here
to force the bear side of the stock market
Selling orders from Chicago over private
wires were estimated by Stock exchange
rumor mt as high as 100000 shares and were
attributed to the account of this following
The violent slump in the rubber stocks on
the reduction In the preferred dividend was
an additional disturbing influence The
joint effect of these various causes can he
gathered by u study of the price changes
for the day In the list of stocks. The ex-
treme decline in Rubber was IA. in Rubber
preferred 9h i'm Sugar 6b Metropolitan
Street Railway 62, Federal Steel 5 and i'm
most of the leading industrials between 2
stocks which have recently been under
most palpable manipulation were naturally
most affected The most notable declines
from the high point We're: Erie first pre-
ferred as; Delaware d Hudson, 4: North
ern Pacific. 37s; Baltimore e. Ohio and Della
ware, Lackawanna ~ Western 32,; Iowa
Central preferred, 39s Pennsylvania, Read
ing second preferred, Denver q Rio Grande
preferred and Chicago Great Western pre-
ferred "B," 31s; Kansas IL Texas preferred
3%: Union Pacific, 3is. and throughout the
railroad list from | to points. The closing
was In many cases near the lowest.
The bond market was very active and
lquidatlon was In force there as well as In
stocks, but the declines in prices were by
value, $3,9550o0. United States refunding 2s
declined u and new As, registered, a on the
last call.
The following are the closing prices on
the New York Stock exchange: