The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-05-04


NEW YORK, May S.-This afternoons
setback in prices was sthe- most violent
which has occurred since the present
phase of the bull market set in 1t was
absolutely without cause in news of any
thing that would DO harm TO intrinsic
values of securities, commerce or indus
try. A furry in the money rate coming
on over extended speculative accounts
indicates the whole situation in a nut
shell. 1t is characteristic Of a boom that
it should continue unabated into the very
teeth of such situation, with every pre-
liminary warning but pushing recklessly
onward until the actual event forcibly
checked the advance. The danger has
been obvious that the speculation was
oVerrunning the bounds of reason and
safety. The buying was admittedly with
out motive or information between the
hope and belief that there would be
enough future buyers to lift prices to a
higher plane and so offer profits There
were exceptions in the case of the great
market leaders. in which there were
plausible theories and reports of buying
to change control. But in these also the
horde Of spectators who have tailed on
prec1pitately to each movement of this
kind for several weeks past was a very
large element in the buying. Increasing
trepidation has been felt among commits
sion brokers and lenders of money, who
assume responsibilities for speculative
buyers, that many of this class were
straining their resources unduly, de-
pendent, as they are, on the maintenance
credit good AS a consequence. there has
been increasing pressure from commits
sion houses upon their customers to take
their profits and tighten their load But
the buying demand has been constantly
reinforced by newcomers, and the inroads
upon the money market extended. The
preliminary figures of tomorrow's bank
statement made it clear that only a weak
showing can be hoped for from that slate
ment and the bankers began call ng
loans to recuperate their positions. The
call loan rate ran up in consequence to
per cent, and the SPECTATORS began to
manifest acute distress as they found
themselves to look about for new accom-
modationS. The extreme Sensitiveness OF
the situation was manifest in the vio-
lence of the reaction by what was real
ly moderate hardening in the money
rate The delicacy OF the situation was
enhanced by the furious speculation this
morning in Atchison, st. Paul. Rock ISL
and, Baltimore & Ohio. Missouri Pacific
and q number of stocks influenced by
these movements. Advances Of 81 to 79s
had resulted during the morning amonzs
these stocks, st. Paul Being particularly
buoyant. When the pressure came upon
the market these stocks were naturally
amongst those which We're most acuteIy
affected by the selling. Enormous blocks
were unloaded on the decline at success
sive drops of a half to point through
many points decline. The drop in Atchi-
son reached 9%; st. Paul, 93s; Rock Isl
and, SO; Northern Pacific, 8; Baltimore
q Ohio, "; Union Pacific, rs; Missouri
Pacific. G14 New York Central 6: I'LL
nois Central 5; Wabash preferred. so
Kansas & Texas preferred, Az; Atchison
preferred 4; Sugar, AZ, sandsa large num-
Der OF other stocks between / and 4
points. The bears were so eager to take
profits after their long abstinence that
their demand to cover caused rallies
amongst these stocks of from 2 to 4
points. But the rallies We're not all held
and prices went off again, In some cases
to the lowest. The closing was feyerfsh
and unsettled and the undertone contin-s
ued weak. The preliminary figures of to-
morroWs bank statement Indicates a
gam IN interior movement OF less than
$z,Wo,00O to offset the loss to the subtreas-
ury Whlch was reduced in today's state
ment by the payment of government in
tereSt checks and bond redemptions to
A,7l5,OQO. The extent of the disturbances
IN the money market today indicates that
the available surplus Of the banks had
peen considerably impaired by the great
demand for the stock market sDecula-
tlon as well as by this indicated loss in
cash OF nearly So, 000. 900. The easier tone
or the sterling exchange market follow
ed naturally from the sharp demand for
money, ana there was no further en-
Sagement or gold for export tomorrow
Bonds gave way in sympathy with
stocks, but there was no great activity
IN IN the general LIST. Total sales, par value.
S., 1856 900.
United States IS and IS declined 4. and
the new as and refunding Is q, and the
new 4s and refunding Is, coupon, Il per
cent on the last call.
STOCK QUOTATIONS.
Furnished by Charles H. F.. Smith &
Co., members Of the New York Stock
tNchange. Pioneer Press building. who
York. Closing prices are bid