The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1902-05-03
RESTRICTION IN MONEY
WAS THE IMMEDIATE CAUSE.
The Ground Had Been Prepared by the
Manipulation OF Speculative Pools
and Clieuss.

New York, May 1.-The stock market
received a shaking out this afternoon whicn
had been considered overdue for some time
by competent observers Of conditions, AS
usual the construction Of the money supply
is the immediate cause Of the fall in prices.
Needless to say. the ground has been pre-.
pared by the manipulation OF speculative
pools ana ollaues with resulting imitation
In prices which gave purely fictitious values
in the most hagrant cases and a highly
speculative range OF values In the whole
list
The lesson OF the International Power
episode was reinforced today by the ex-
ample Of another group which has been hit
ed recently by highly manlpulatiye tactics,
with practically no general demand for the
securities. The abrupt break to par Of
Rutland preferred, compared with 40 yes.
terday, WAS a sufficient indication on the
stock exchange OF the state Of dlstrust
which has arisen.
The displaying Of credits which resulted
from the DISCRIMINATION against collateral
for loans. caused a lively disturbance In
the money market which was already In a
tight condition. Some OF the largest Of the
banks loaned very freely at an arbitrary
rate Of G per cent, hut this did not prevent
an actlve demand at higher range OF
rates all the way un to 10 per cent
The forecast Of the weekly bank state.
mcnt did not promise any immediate relief
from the present strained condition ~ tho
money market Indications point TO a loss
OF cash by the banks OF nearly SSooo,0N
In spite OF receipts on balance from the In
terlor, and owing to the suhtrcasury re.
qurements Of $i,13j.ooo
The steadincsS Of the foreign exchange
market AZ near the gold export point was
also regarded ominously as threatening a
possible further complication next week
The calling for payment of n % per cent
installment Of subscriptions TO the stenm-
ship merger syndicate will require next
week an amount Approximately Si,5O0.oO.
on tho suppostlon that 80 per cent Of the
subscriptions are payable In New York and
40 per cent abroad.
There are other heavy requirements immi
nent, including the disbursement Of the
dividend to the United States Steel under
writing syndicate.
That there we're some heavy transactions
carried through today was indicated by the
large clenrings Of the banks which reached
about SAT- O0O.OO for the day. The weak
ness was contested for time apparently
hv the element which has led the spccnln
tion Of late They had 10 contend with tho
regular Western orders TO sell. The notable
strength Of Louisville. which touched l3G9i
was attributed to the maneuvers NJ this
element, and said to he facilitated by the
existence Of short interest Early
strength IN PENNSYLVANIA was also a help.
In the late dealings al attempt 20 sup
port the market was abandoned and stocks
Z were uNloAhtN lNOlNtFiHllnhltlNf 'huNiHS u
break In prices, which reached as high rs
per cent and over In the majority Of
stocks st. Paul suffered TO the extent OF
/ AZ, Canadian Pacific 3@s, and other less
tlonnl Power continued its recent eccentric
gyrations which extended from 800 to So
wth a net loss Of 10 points,
Hasty prodt.takins bv the room shorts
caused spasmodic rally, but the closing
was weak and semi-demoralized. Minor
considerations were ohliteratcd by the i'm
portance attached TO the money outlook
The bond market shared the weakness OF