Evening star., 1902-08-15
Early Strength in Stocks In
vited Liquidation.
MONEY WAS TIGHTER
BANKS UNWILLING TO EXTEND
LOAN ACCOUNTS.
Expect Heavy Drain for Crop Moving
Purposes-Gould Shares
Decline.

Special Dispatch TO The Evening Star
NEW YORK. August l5.-Trading during
the opening hour this morning resulted in
higher prices, but the new level attracted
liquidation. and I'm almost every instance
the gains failed to hold. The realiZing was
especially conspicuous In the Gould issues.
the several pools selling openly as tho
market would take stock without material
ly disturbing prices.
The immediate cause of the selling was
the sitter rates for money and a reported
unwillingIFess on the part Of the banks To
supply funds for a further advance until
the drain from the west assumes more defi-
mite proportions. The daily bidding up OF
prices, the confident talk Of increasing val
ues and the further expansion OF the loan
account are factors now frowned upon by
conservative institutions
TIE facts are not disputed. but the wis
dom Of advancing prices from the present
level, that level being the result OF condi-
tions long anticipated, and now all but
realized, is a disputed point. Deals are
said to be In contemplation which Will
make good any defects in the arguments
offered by the western party, but the basic
fact remains that the banks are without
funds sufficient to meet an extraordinary
crop demand and conduct a campaign in
the stock market simultaneously.
One Of these contingencies must give way
TO the other and ii is likely that the stock
market will be made to do the waiting
Western operators were quoted as be-
lieving In the VESTS ability to finance 4
large proportion Of its crops, but today they
were impressed with the eastern argume MT
that maybe there might be some disap-
pointment in this particular. Accordingly
there was a free selling OF Missouri Pa
ciic above 1l9. and an increasing supply
of Texas Pacific around 81
The southwestern roads sold off easily
under profit taking, and even Illinois Cen
trail after being made to sell at no. lost Ia
per cent under realizing sales. This last
named stock has been the best OF the re-
cent Gates selections. Owing TO the con-
fidence I'm an early settlement OF the Louis
Vile and Nashville episode that stock was
kept stronger than the market.
Southern Railway common was well
bought also. because both are to benefit by
any plan which may have been devised.
The unsympathetic condition of the general
market caused these issues to be neglected
during the later trading.
pennsylvania was advanced under buy
ing of fair character. and Baltimore and
Ohio followed the movement for a time.
The pool in the latter curtailed it's opera
tions In the presence of the q per cent call
money rate which was recorded late in the
day.
Southern Pacific was advanced beyond a.
ana given good support from the pool. but
l
with 1t met with small success.
Atchison, Colorado Southern issues and
numerous lowpriced specialties sold OFT
from Y to 1l2 per cent from the best level.
The selling Of these issues was credited t.
the following of the pools rather than to
the pools themselves. The call rate IT
money does not work hardship to the lead
| ers of the big market movements since
their borrowing for weeks has been on
| time. New business is discouraged and
pool aggressveness is delayed.
The S15oo0,000 payments on the new
Union Pacific bonds Will probably show in
tomorrow's bank statement, In which an
increase in loans Is expected.
So far as the known movements of money
are concerned the banks would seem to
have gained moderately through the sub
treasury. These forecasts have been mis-
leading frequently, but the action of to-
days market may be accepted as con-
elusive that some shifting OF loans has
been in progress.
Money loaned at during the last hour
and the market became dull and moder-
ately steady at the decline. Realizing was
continued in the Gould shares. and few of
the gains of the morning were restored.
| The advance having been checked there is
likely to be the usual period of skepticism
to when IL will be resumed With Mr..
Morgan and Mr.. Keene back home next
week. and Mr.. Gates through with the COL
orado Fuel contest Developments OF i'm
portance may not be far away. late ru-
NOR that the New York Central had se-
cured control OF Hooking Valley was cir
culated in the room