The Saint Paul globe., 1902-09-24
TUMBLE IN LEADING SHARES
AMOUNTS TO FROM 2 TO s
POINTS
TIGHTNEss OF MONEY
CAUSE OF THE TROUBLE
Furious Efforts to Sell Go on All Day
Heavy Liquidation in Missouri
Pacifie-Unfavorable Crop Reports
and Great Britain Venezuelan Trou-
BILE Aid in General Decentralization.

NEW YORK, Sept 23.-The stock
market was subjected to drastic liqui-
dation today and spectators of all
classes from the smallest to the gSaat
est threw over their holdings with in
creasing signs of disorder. There
the selling, but whenever the bears
commenced to bid for stocks in the
fear that they were overextending
their short account, it proved so easy
to get stocks that the offering down
of prices was constantly renewed,
with a constant uncovering Of fresh
Stop-loss orders, which tumbled stocks
upon the market in heavy volume. The
closing was furiously active and with
prices still pursuing a rapidly down.
ward course.
The growing difficulty of borrowing
money to carry speculative holdings
of stocks on margins was the root of
the trouble. Yesterdays moderate
calling of loans by the banks, instead
of relieving the trouble, seemed to ag-
gravate it. The disturbance Of the
money market was due in some part
to the operation Of the forces Of re-
lief, which were through new and un-
accustomed channels.
Money Easy to Loan.
Thus the high rate for money re-
sulting from yesterdays loan contrac-
ton offered an inviting opportunity
for all who had available deposits in
the banks to draw out their deposits
and replace them on loan in the stock
market. This was done by many
classes of depoSitors all the way from
those with private accounts up to the
large banks of the interior, which
keep many millions on deposit with
New York banks. This process, if
carried out in a thoroughly systematic
and orderly manner, would constitute
simply a. transfer of book accounts. No
increase or decrease of the supply of
loanable funds is involved, but the de-
positS withdrawn from the banks to
be loaned had to be replaced by heavy
calling of loans put out by the banks.
This shifting process was largely re-
sponsible for the continual aurries in
money. The sentiment in the street
was decidedly upset by the convic-
tion that no relief is Immediately
available for the stringent condition
Of the supply Of money. The early
contribution Of nearly a million dol
lars to the market through the sub
treasury operations was nearly wiped
out by yesterdays customs collections,
and today there was deposited at the
sub-treasury $250,000 for telegraphsc
transfer to Chicago and $4,000 for
Withdrawals of deposits by interior
banks were loaned here, other sums
were shipped away expressly to meet
the crop requirements. The drop in
New York exchange at Chicago from
par to cents discount reflected the
increasing pressure upon this center
for funds, notwithstanding the higher
level of money rates.
Sterling Exchange Doesn't Yield.
1t was noticeable also that the ster-
ling exchange rate failed to yield to
any material extent. The jump in the
prices of wheat and cotton has check
ed the export buying and the making
Of exchanges. Private discount in
London rose above the bank rate to-
day, and it is generally expected that
the bank rate will be advanced to 4
per cent on Thursday, and such other
obstacles interposed to the movement
of gold to New York as are possible.
The amount of commissions eXacted
by brokers for time loans is growing,
and there are complaints of scarcity
in other departments of the money
market owing to the Withdrawals to
take advantage of the high ruling rate
for call loans. The considerable
shrinkage today in the prices of Sc
curities involved calls for additional
factor in the pressure in the money
market.
The confidence in values which has
been so persistently maintained re-
ceived a decided setback in face of this
combination of circumstances. At
least one powerful speculative COM
bination hquidated accounts to the ex-
tent of between $4,000 and 100000
shares Of various stocks, most large
ly of Missouri Pacific. One of the most
important mainstays of the recent
market was thus withdrawn. -
One Ray of Light.
An opening lift of 2 points in st.
Paul was the only important attempt
to contest the declining tendency from
the start. Last prices show that the
most important stocks are from to
over points lower than they were last
night. The downward impulse to
stocks caused some additional weight
to be given to the reports of disorders
in the country region, unfavorable
crop reports both for grain and cot
ton and the strained relations between
Great Britain and Venezuela, but the
money situation overwhelmed all other
conditions.
Bonds were active and weak. Total
sales, par value, $5,545,OO
United States IS coupon and the 3s
advanced n per cent and the Is regis
tered declined " per cent on the last
call.
Sfocks