Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1901-05-04
4 BACKS[I N PRICES.
Yesterdays DROP CAME WITH
OUT APPARENT BAD NEWS
OF ANY SORT.
A MONEY MARKET FURRY.
AND FEARS BORN OF THE RECK-
LESSNESS RECENTLY Dis
PLAYED, RAN RATES UP.
(By ASSOCIATED Press. }

NEW YORK, May 3.-This after
Moons set back in prices was. the
most violent which has occurred since
the present phase of the bull market
set in. 1t was absolutely without cause
in news of anything that would do harm
to intrinsic values of securities. COM
merce or industry. A furry in the
money rate coming on over extended
speculative accounts indicates the
whole situation in nutshell. 1t is
characteristic of boom that it should
continue undated into the very teeth
OF such situation with every prelim-
mary 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
without motive or information beyond
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
eioO C1iS AOAoO w SpCNQ4dlOlo nv AdN q
tailed on precipitately to each move
men, OF this kind for several weeks
past was a very large element in the
buying. Increasing trepidation has
been felt among commission brokers
and lenders OF money who assume re-
sponsiDilities for speculative buyers,
that many of this class were stretching
their resources unduly, dependent as
they were upon the maintenance of the
prices of securities to keep their credit
good. AS a consequence taere has been
an increasing pressure from commits
sion houses upon their customers to
take profits and tighten their load. But
the buying demand has been constant
ly reinforced by newcomers and the
inroads upon the money market extend
ed. The preliminary figures to-
morrCW's bank statement, made it clear
that only a weak showing can be hoped
for from that statement and the bank
ers began calling loans to recuperate
their position. The call loan rate ran
up in consequence to per cent. and
the spectators began to manifest acute
distress as they found themselves obli-
gated to look about for new accommo-
cations. The extreme sensitiveness of
the situation was manifest in the VIC
lence of the reaction caused by what
was really moderate hardening in the
money rate. The delicacy of the situa-
ton was enhanced by the furious spec
ulation this morning in Atchison, St
Paul, Rock Island, Baltimore & Ohio,
Missouri Pacific and number of stocks
influenced by these movements. Adj
vances of 3A to rs had resulted dur
ing the morning amongst these stocks.
st. Paul was particularly buoyant.
When the pressure came upon the mar
ket these stocks were naturally amongst
those which were most acutely affect
ed by the selling. Enormous blocks
were unloaded on the decline at sue
cessive drops of a half to a point
through many points decline. The drop
in Atchison reached ga, ST. Paul 95s
Rock Island S%, Northern Pacific s,
Baltimore & Ohio III; Union Pacific
7$s; Missouri Pacific Ga; New York
Central 6; Illinois Central 5; Wabash
preferred SIS; Kansas & Texas prefer
red ~. Atchison preferred 4; Sugar
4A and large number of other stocks
between l 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 Az But the rallies were not
well held and prices went off again in
some cases to the lowest. The closing
was feverlsh and unsettled and the I'M
dertone continued weak. The prelimin-
airy figures Of to-morrcw's bank state
ment indicate a gain on the interior
movement of less than $4,000 900, to off
set the loss to the sub-treasury which
was reduced in to-day's statement by
the payment of government interest and
bonds redemption to SAILS, 1000. But
the extent of the disturbances in the
money market to-day indicate that the
available surplus of the banks had been
considerably impaired by the great de-
man of the stock market speculation,
as well as by this indicated loss in cash
of neaIy s3,000,000. The easier tone
of the sterling exchange market follow
ed naturally from the sharp demand for
money and there was no further en-
gagement Of gold for export to-mor-
row.
Bonds gave way in sympathy with
stocks, but there was no great activity
in the general list. Total sales par
value s5,755,00O.
u. s. 3s and IS declined y and the
new As and refunding Is 70 and do
eouDon IL DER cent on the last call