Evening star. [volume] (Washington, D.C.) 1854-1972, 1901-07-08
Heavy Liquidation in Stocks Forced
Prices Down Today.
STANDARD SHARES SUFFERED MOST
Unsatisfactory Condition of Money
Market the Cause.
GENERAL MARKET REPORTS


Special Dispatch TO The Evening Star.
NEW YORK. July saturdays state
| ment Of the associated banks showing a
further loss in cash and the reserve down
to the lowest point Of the year. inspired q
liberal selling movement in today's stock
market The money situation is decidedly
unsatisfactory. and easy rates are not
likely until fall. Loans are expanded and
the demands for money for other than
speculative purposes are increasing. Five
millions reserve and nine hundred millions
in loans suggest possibilities for involun-
tary liquidation sufficient to inspire caution
in all conservative circles.
While stop-loss orders and sales for the
short account were responsible for the de-
cline in today's market to a considerable
degree, there was also an unmistakable I'M
dercurrent of genuine liquidation. Many OF
the strongest and most conservative houses
In the street We're steady sellers throughout
the day.
The weakness in the high grade invest
ment shares was due to selling OF this char
acter. In the present state of the money
market the high premiums the better
class OF securities inspire caution. The
day for borrowing on third-class issues
has past, and the only means OF protection
for them is an unloading OF shares Of &C:
tual and undisputed value at the banks.
Discrimination as rigid as the laNity OF the
oppOSlt mas Dtcn SINCE last Nv
vember is now forced upon the banking
community.
Another unwelcomed factor was the news
of rate cutting in the west. Atchison off,
Gals. conscious Of secret rate cutting by
competitors, have been forced into an open
reduction of tolls on east-boand shipments.
This episode detracts from the couttdenc
in the community of ownership idea and
shows very clearly the need of a further
development Of the plan.
The roads concerned In this affair de-
pendent upon grain shipments for a con-
and while the fate of the harvest Is still
in doubt an Improbable rate controversy
is inaugurated
The steel strike no longer looks formula
bic and present indications point to
early adjustment of all differences.
The prospect had no effect upon the Steel
shares, however. heavy sales being in pro-
sress throughout the day. There was some
disappointment that Mr.. Morgans return
did not revive interest in these shares. but
there seemed to be little effort in that di-
rection. Some buying on a scale down was
noted. but 1t was not in sufficient volume
TO give direction to the price movement.
The coal stocks were heavy and reflected
sales OF long stock upon a considerable
scale. The independent steel and iron
shares and the industrial list generally
were weak.
A few rallies in the market were short
lived and served to attract new selling
from commission houses. Liquidation is
desirable. and some of the larger houses
We're willing to stand aside and allow the
process to proceed.
Money was offered down from 6 per cent
to 212, but the latter rate inspired only a
covering of previous sales. There 10 no
demand of any moment, and rallies and
reactions. with Eeaviness dominant, seem
certain to prevail for a further indefinite
period.