The Montgomery advertiser., 1901-05-15
WALL STREET REVIEW
LIGHT LIQUIDATION CAUSES
 VIOLENT DEALINGS.
Inherent Weakness of the Stock Market After Last Weeks Severe Shock-Becomes Obvious.
 Bonds Also Weak,

NEW. YORK, May H.-The inherent Weakness of the stock market after last nh,tis %eek severe shock to confidence became onvious today, and some violent declines were caused by a comparatively light vol tune of liquidation. The weakness was partly due to the, fact that the natural ;ep19hq ;,sc9s aiter the panic had expended tself The factors which caused that re- pound were elements of weakness at the hlgner level of prices. For instance the professional operators who were so for .%unate % as to secure stocks that were sac rihced at the low level on Thursday were very willing to sell and take profits when they perceived that the rebound had about reached its limits. There was an- other class. that of the insiders and friends of various stocks who bought heavily on Thursday to support their fa- vorlteS in order to protect their values as far as possible. This class was anx- ious to tighten its holdings when the panic was checked. and took advantage of the high level of prices. There was a large amount of belated liquidation also in to- days market. on the part of the capital ists. and operators who were strong enough to hold through the panic and save their property from ..bsolute sacri- fice. but who were nevertheless bent on liquidation. The Saturday holiday was taken advantage of all through Wall Street district to bring up accounts to date. and the weak condition disclosed in many cases prompted the closing out of these accounts. This factor would have had more influence yesterday had it not been for the encouraging effect of the fa- Vorable outcome of the London settle ment. The bears also resumed their az gressive mood today, and not only of fered prices down to take the market away from those seeking to liQuidate, but were industriously circulating alarmist rumorS of the further consequences to ensue from the conflict in Northern Pa cilic. It was observed with apprehension, as indicating possible spread of hostile tactics to general stock market warfare. that brokers usually supposed to be em-, ployed by Standard Oil interests were sell lers Of so-called Morgan stocks. while the supposed Morgan brokers were in evidence when the stocks in the South western group began to give way. This might easily have been a bear manuever. but it was effective in driving prices downward. There were whispers about the exchange also of a new element Of disturbance in the Union Pacific stua- tion. That stock was most prominent Tn the market all day, and its violent break after a brief period of strength was an effective influence in unsettling the whole market. The selling was seemingly for the account of insiders, judging from the agents employed in executing orders, and very large selling orders in this and In other Western railroad stocks came from that portion of the country through Chi cago. Boston was also active on the sell. ing side. With the obvious tendency Of tho market to yield, the investment Duy- ing which has been more or less in evil ,lence for the last day or two was large ly withdrawn in the nope or Settins stocks later at lower prices. It was the prevalent belief also that the powerful operators, including the most conspicu- Ous one of the group, who were so long foremost in the bull market. had turned to the bear side and were selling freely. Whatever the causes at Work, 1t was clear that the buying demand for stocks had fallen to insignificant proportions ana the liquidation, even of comparatively light lines, caused sudden and rapid melt ing away of values. There were inter vals on the down grade of 1, and even 5 points between sales. A scrutiny of the price changes of the day will reveal net losses of between 3 and 6 points for a large number of the principal active stocks. The decline below last nights 8 level reached in Union Pacific Is. St; Paul 97s Delaware and Hudson, Misso1ni in Pacific and Gas 8. Northern Pacific l0 Lackawanna 7a4. Manhattan and Amal- gamated Copper 6 and Rock Island 6.
 The money market was not an influence, as there was no large demand for call loans Tn fact, people were mostly con as was possible. For the same reason the growing difficulties of the foreign money situation and the belief that 1t will draw largely on New York's money supply was viewed with lessened apprehension. The coming instaBment of the British war loan the expected issue of the Russian loan in Paris and the embarrassment feared for the London market by the withdrawal of French credits are expect ed to result in a considerable movement of gold from New York. notwithstanding the easier tone of the exchange market today.
 Bonds became weak in sympathy with stocks after an early show of strength. States refunding 2's and new As ad- Vanced A per cent. on the last call,