Evening star. [volume] (Washington, D.C.) 1854-1972, 1902-09-22
FINANCE AND TRADE
Sharp Declines at Wall Street
Opening.
MET GOOD SUPPORT
LATER THE MARKET RELAPSED
INTO DULLNESs.
Deficit in Bank Reserves Largely Re-
sponsible for the Selling
Movement
MET GOOD SUPPORT

! Special Dispatch to The Evening Star
| NEW YORK, September 22.-The accu-
| mutation of selling orders from the coun-
| try and a fair sprinklins of stop-loss or
| ders resulted in weak and feverish OPEN
| Ing in today's stock market. Commission
houses sold stocks and London sent over
selling orders aggregating 25,000 shares.
Initial declines varied from y to per cent
stop orders in Missouri Pacific opening
that stock down 3 per cent. In few in
stances an effort to make prices as low as
possible was noticeable, the hope of fore
ing a sharp decline inspiring free offerings.
The larger interests came promptly to the
front. however, and the entire market re-
flected splendid support at the conclusion
of the first fifteen minutes. st. Paul was
willingly taken at the decline, aud later in
the day the price rallied substantially above
Saturdays closing level
As this stock has been steadily accumu-
lated by the Standard Oil party the willing
| ness ito buy today inspired the belief that
leading fnanciers expected high money
rates only and not disastrous shrtnkage
in loanable funds. Canadian Pacific, which
the so-called Montreal pool has worked
into prominence, was well taken during the
morning, and here, too, was evidence that
depleted reserves were regarded pass
ing embarrassment. For the most part,
however. the desire of the leading interests
was to discourage new business in specula-
tive accounts.
In order that confidence may he mann
tanned, the banking resources of this COM
munity must be strengthened. This result
can only be attained through gold imports.
larger in volume than are at all likely or by
reduction of loans. If the market Is to
be spared a shock, the liquidation of leans
must be spread out over a considerable
period and not aimed at one or two groups
of securities.
Dizziness in speculation would help the
latter course and for that reason commits
sion houses of the prudent sort are seeking
little new business: AS to the pools, there
is an air of confidence, born OF the fore
sight which lead to the making Of time
| loans which carry over the first Of the
year.
Brokers for these pools were lending
money today at the call rate which they
had borrowed weeks ago at 5 and 5la per
cent on time
The Southern Pacific pool for example,
with hundreds, If not thousands, Of par
ticipating members, promised 3 per cent in
terest charges as the maximum for thu
year. The larger enterprises involving
deals for entire railway systems were not
undertaken on a call money basis.
In fact, 1t will probably be disclosed later
on that crop moving and the drain at the
subtreasury are but two Of the contributing
causes for the present money market furry,
the third, and not least important cause,
being the extensive time money loans made
to millionaire syndicates. The banks hold
"a $40 per cent of reserve against the %
per cent rate established by law. The de-
Election Is therefore, but two-tenths Of I
per cent.
If the warning is needed the security
markets need go through no panic period
Money today loaned as high as 20 per cent
but most of the loans were considerably
under that limit.
Many rallies from the low points were re-
corded during the day and the price move
ment while unsettled, had lost much Of the
early nervousness. National Lead and
Leather common were strong features of
the industrial list on reports of beneficial
inside developments.