New-York tribune., 1901-07-15
High. Low. Julyla July slch'gs. Sales.
THE WEEK IN WALL STREET


The net result Of operations last 'veek in the
stock market was heavy loss In orices- The
liquidation OF long accounts extensive
that resistance 10 the decline entirely swtpt
away Much of the selling was compulsory.
SpecuIators who were unable to protect their
accounts with additional margin were sold out
5ummarily. or on stop loss orders. In :he case
Of those whose resources were not exhausted,
but who deemed il wise to curtail losses, the
sales were practically forced An effort was
made at the beginning Of the week TO stay the
decline, but it unavailing. The aood Of
stocks simply Irresistible Large interests
which started in TO buy the stocks that were
thrown on the market were soon engufe I'd. and
seeing the hopelessness Of their effort, turned
sellers themselves Surprisingly enough there
was. despite the pressure of stocks. actual
Generalization. The descent in prices was not
violent, in a few individual stocks. ard
accompanied and then by rallies, which,
however. were feeble.
One outcome Of the tremendous liquida -iCn
was, of course, extensive contraction in leans
which had the effect of developing oase in
money. AT the end Of the week the rate fer call
money had dropped to per cent, whereas in
the preceding week it had been as high as %
per cent. The state of money had nothing TO
do with the fall in stocks-that was due to other
money is satisfactory. The operations of the
government causing money to flow into the
Treasury, but il can be and is being put out
again by purchases Of bonds and by augmenta-
tons of deposits in the government special de-
positories Money will go TO the South ard
West later to move the cotton and grain crops,
but the amount that viii be withdrawn from
New-York for this purpose will be moderate
compared with former years. The fact is the
South and West are full of money, and those
sections will not require much help from the
East in providing funds for the handling of their
crops The growth in the deposits of the West
ern banks has been astonishing.
The thing that started the break in the stool,
market was trs severe damage to corn and IN
-cidentally TO oats. AS the days succeeded one
another with no relief from the whitening heat
the alarm increased and the disposition to sell
stocks was intensified. The importance Of the
corn crop is easily apparent when il is stated
that in bushels. it is normally not far from four
times as great as the wheat crop, and In money
value it IS twice great. If corn does not leave
the hands of the farmers as grain IL does in
products. such hogs and cattle. In exports
corn has figured IL expanding proportions both
In the kernel and IN provisions, and the prospect
OF reduction in the crop by possibly 30 or 40
per cent is startling. The hope is that the
weather VIII change and that part of the dam
age at any rate will be undone. There can be
no doubt that the present situation is grave, and
later in the season the crop will again be en-
dangered by frosts
There has fortunately been very little impair
ment Of wheat The wheat crop, indeed, may
prove the largest record, and the partial fail
of the crops abroad insures market for the
surplus beyond home needs. Notwithstanding
the bountiful crop of wheat, the market price
for this cereal displays advancing tendency.
The price of corn has been going up, but a high
price for corn will not make up for the deficiency
in the yield. The former viii receive less IN
money and the transportation lines will lose in
tonnage and consequently in revenues. good
degree Of the prosperity OF some OF the Western
railroads depends the corn crop. Happily
there have been large corn crops for six years
ard large wheat crops for four years. For sew
eral years also there have been large or fairly
large crops of oats. The farmers therefore are
in a position to endure shortage in corn and
oats The carrying lines, said, will be suffer
ers and the export trade viii be affected likely
TO a material extent.
A forbd6ing incident was the order iseued by
the Atchison. Topeka and Santa Fe Railway
for q cut in freight rates. but which, luckily,
was not put into effect. This matter disclosed
that the maintenance OF rates in the West was
not as supposed, absolutely assured. The fear
was engendered that trouble might break out
at any time, and especially in the event OF a
decrease in traffic. when competition to secure
busness would be intensified. However. power
ful interests We're enlisted, and what might have
spread into a rate war averted temporarily,
II not permanently. II is not impossible that
the Atchison system will be brought more d.
rectly into the community Of interest To the
Chicago Great Western Railway, which the
Atchison accused OF secretly cutting rates. may
be denied the privilege OF proratlng with other
lines IN order to compel 1t to adhere to tariffs.
There were some indications OF Irregularities
in rates between Chicago and st. Louis and the
seaboard but new pledges OF good faith have
been made
Railroad earnings have been phenomenal
The roads have enjoyed prosperity for so pro-
tracted a period that most OF them have sub
stantial surplus funds. Anyway, the financial
obligations OF most OF the roads have been ad-
1usted on a basis that insures them against de-
faults I'm the most depressed times but
apparently the worst to be locked forward to is
the loss OF tonnage that will come In the de-
Gcieney In some cereals. General business has
not suffered and is not expected 10, so that the
earnings OF the roads on the whole should not
be affected 10 any material extent There are
certain roads that will be hurt more or less
but other lines Will feel the contraction in grain
tonnage only incidentally. Not only that but
It. H.