The age-herald., 1901-07-14
VIOLENT BREAK
 IN CORN MARKET Made the Bears Hesitate and
 Prices Advanced Quickly DECLINES AT THE CLOSE ; Bank Reserve Shows Small Increase, While the Loans Show an Enorn-
 ous ontraction-Market Fe- verish and Erratic.

i New York, July 1s.-There was a fever Sh and cratic market for stocks throughout today's short session, due to the hesitation engendered in the minds of the bears by the violent break in the corn market and by the large reoupera- tion in the condition of the clearing house banks disclosed by the weekly bank statement. There were two sharp rallies on account of these factors. Neith- CT rally was held with any firmness and the market closed with renewed declines at many points on realizing and sharp advances in individual stocks. There was evidence of continued pressure to liquidate in the opening dealings, most marked in the United States Steel stocks. The preferred was carried down 29 be- fore vigorous support rallied it. The com mon lost A and rallied most easily. The preferred rose 11a with the general rally in the market, but continued under pres sure. TheErecent market leaders, St. Paul. Atchson and Union Pacific lost 1 to 3 points, but came up vigorously when the break in corn on the Chicago mar ket was reported.
 The recovery in corn sent prices Of stocks down again, as 1t was feared the movement was more due to precautionary realizing by longs in corn on the possi- biity of Sunday rains than to actual news of aneloration of the conditions in the corn belt.
 The banks showed a larger gain in cash than expected, the reserve rising $3,17510O. The importance of the weeks liquidation in the stock market is meas ured by the enormous contraction Of $2l- O01,500.
 This is the largest decrease for a single week in the history of the clearing house with the single exception of the week ending May IS of this year, which was the week following the May panic when the loans were reduced $24, ,2O4,SOO. The decrease in reserve liabilities affected by the loan contraction aided materially Tn the $7597, $50 recuperation in the surplus of the banks.
 Drastic liquidation of speculative ac- counts has swept the stock market this week and considerable long selling has been added under the threat of damage to value of securities by departments in- dicating future impairment of earning power. The speculative buying which was conducted pretty steadily during June has been thoroughly shaken out and the level of prices carried below where 1t started. The process was be- gun last week and cut short by the ad- journment of the stock exchange from Wednesday until Monday of this week.
 There is reason to believe that there twas much manipulation of prices during = the June period by powerful capitalists with the purpose of repairing the dam- t4age to values wrought by the May panic which afford a better basis for credits in the furtherance of additional financial projects or the support of those already entered upon.
 Wall street is inclined to recognize division into two groups of the dominant financial. power of the country the dis tinction between which was emphasized by the struggle for control of Northern Pacific. The operations of these two groups are easily distinguished as inde- pendent but as result of the promised settlement of the Northern Pacific con- test they were supposed to be not an- tagonistic and to be as one to support the stock market at the high range Of prices The fear got abroad this week that the policy of the two groups in this respect was diverging again. Brokers supposed to act for members of the one group were selling stock, While TOT the other there was buying.
 If will be seen that the stock market was in a weak position technically ourlng the past workable week.
 The damage to the corn crop which IS admitted to be severe is of most i'm mediate concern to the Changers Paci- fcs and Southwesterns, and these par tocular stocks have been inflated by the over exploitation of community of in- tercst project and the so-called Greater Missouri Pacific rumors. Their losses were therefore very severe and out of all proportion to the actual damage to the corn crop as measured by the price rnovment in the corn market.
 The railroad bonds have been affected i, svmnathy with stocks but in much less degree. New United States fs de- clined kc and the refunding 2s old As and the 5c advanced A per cent over the closing call of last week.
 New York Stock Market.