The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1901-01-04
financial.
THE S1'O OK M4iRKLcT.
Prices swept Down ward In n Torrent of
Selling.

selling.
New York, Jan. 3.-~The long expected
storm of liquidation broke over the stock
market to-day and swept prices in tor
rent Of selling on a downward course,
which was not effectually checked even at
the close of the market. There were wide
breaches in prices by that time and the
precipitate character of the selling gave
the market the appearance Of semi-demor-
aization, SPECTATORS who were long Of
stocks showed many of the symptoms of
panic in their scramble to save the impos-
ing profits which the prolonged rise had in
dcated for them on paper. The market
was so top-heavy, by reason Of the vast
number of accounts on narrow margin
which infected 1t that the fall in prices
gained momentum as 1t progressed. The
wiping out of margins with the decrease in
/ the face value of stocks formed them to
sale to prevent losses by the brokers'. The
money market maintained Il calm surface
all day, the call loan rate ruling at per
cent. or below that. There was Il continued
enormous financial transactions involved in
the yearly settlement and the disturbance
OF Loans thus caused added to the unsettled
sum called for by the checks passed
through the clearing house banks today
reached $3.50, 132005, which with the single
exception Of yesterday is the largest total
on record, There were various contributory
causes assigned to account for the violent
break, bur all of them together would have
proved Intellectual to Induce selling In the
speculative mood which has prevailed In
Wall street for many weeks past. The real
root of the trouble was that faith in the
present level of prices began to be i'm
tpaired and conviction was borne in upon
Spectators that the large demand for
stocks which they have expected to con
tinue during January has been pretty well
discounted Seeing themselves long Of
stocks at the very high level attained by
prices and with very doubtful prospect Of
Il large additional advance, they threw
over their holdings with the utmost precipt-
fancy. OF the contributory causes for the
slump, most Importance must be attached
to the advance in the Bank of England dis
count rate from to per cent This was
supplemented by the statements of the
three great government banking institu-
lions abroad, showing radical impairment
of resources on account of the requirements
in the yearly settlements. At the same
time cabled reports from London described
gloomy forebodings over the future. The
result was Il sharp jump In sterling ex-
belief that the New York money market
will be called upon for gold to relieve the
strained situation in foreign money mar.
kets. The developments In the foreign
trade situation favor this hypothesis. Grain
and cotton bills have become scarce In the
exchange market, and the relapse in iron
prices abroad while prices have been well
maintained In the domestic market indcnte
the certainty of a falling Off in the foreign
iro n trade. Imports of merchandise are at
the same time on the increase. The re-
turn to the money market and to the stock
market of the large funds dsbursed here
in the yearly settlements are, judging from
precedents, likely TO be delayed. New
York exchange at Chicago to-day suddenly
dropped from 10 cents premium to 20 cents
discount The heavy liquidation in Sugar
had very unsettling effect on sentiment,
as it was commonly attributed to well
known steel magnate, who has made his
mark heretofore on the bear side of the
stock market. Selling orders from Chicago
over private wires were estimated by stock
exchange rumor at as high as 100000 shares
and were attributed to the account of this
following, The violent slump in the Rub
Der stocks on the reduction in the preferred
dividend was an additional disturbing nhu.
ence. The joint effect of these various
causes can be gathered by a study of the
price changes for the day in the list of