New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1902-12-12
STOCKS STILL DROP.
ALARM RTMORS REFUTED
HEAVY Liquidation Attrabuted to
Increasing Sf,7ngenCy an
M0ney Market.

of the late tIdQlnS OH NNedicSboS' ~o'-
tinued yesterday. reaching its maximum at
ahort | o'clock when many issues sold lower
than at the time of the disastrous break IN
,,rices on November Il. In the last hour some
What Of a rally occurred, closing prices, as
r,,le being above the lowest of the day Inc
sales were heavy. 11S7.567 shares While the
combinations i'm Venezuela may have had a GER
tain measure of adverse influence on market
sentiment the break in prices was ascribed Prl-
roarilv and almost solely to the increasing
strinrencv in the money market. 1t is esti-
mated that the interest and divided dlsburSe-
Ynents next month will be larger than they have
baep at anv corresponding period hitherto, ag-
zreratins about $50 100000 three-quarters OF
which sum will be paid through local banking
institutions To provide themselves with the
funds necessary for meeting this extraorolfai!
demand the banks making every er1orl'
Thus they have recently been calling loans 10
the amount of several millions, and are now
marking I'D the call loan rate while rates 10Y
short time money have for some time been prac-
ticalIy prohibitive, to use the language oI "eH
known Stock Exchange members
Il is true that as result of Secretary SHAW :
oc+ion several weeks ago. the reserves OF the
Associated Banks are now larger than usual
AZ this period the total surplus reserve last
Saturday having been S9,943,i9e. comparih6
with Sc COZ G75 on the corresponding Gay III
1901: S57O1 1o5 in 1900 and S6So9oZo IN 1919
But as already noted. the dlsburseIleh'S IN
January for which provision is now helns hdue
will he the largest record, and WIFI 'Ie
hanks still steadily losing cash TO the QUIZ
-r-o.s,,-v the movement Of money to the in
terror still in progress. the declaration Hoii'
washington that no further relief need be eA-
rected from the Treasury Department. anu 'He
imnossibiliiy Of expecting gold importatlons lot
.+a ,rasan+ the obvious remaining method OF
c-4,f,i,,e, the position of the banks is IN the
raduction of deposit liabilities through con-
fraction of loans, which is accomplished through
stock market liquidation
Such liquidation, a large scale occur
Yesterday, but whether or not IL Gas yet
extensive enough to accomplish It's purpose =
a question on which opinion is olVioeo III On
Street. 1t Is generally agreed, however, ma
more or less stringency will prevail uillil wen
along in January for a large part OF the iliiotlS
10 he disbursed at the beginning OF the moiith
=, = =. +,cl.b oIders and bondholders through
ont the United States. and will not mo us "'
,,,i- % +bis centre for a week or two but' d.
,borgb money will probably continue tight loI
+,a NEXT few weeks such alarmist reports DIS
fbe one published yesterday that the p"iih'
were considering the adviSaolnty VI 1'e
Clearing House certificates are denounced ~
the most prominent bankers IN 'he @'iee' GO
absolutely untrue, and unwarra1lteo pS p1e'
or rrospective conditions Nor are 'heIe any
Indications of institutions or firms IN trouoie'
n,t,o,,eb II seems certain that in yesterdays
,,a-let not only were short sellers active anu
sr.r+ilv rnargined small holders shaken out
- .,so .,,e selling represented enforced lquloa-
-, of blocks of stock by ordinarily classeo
as fairly large operators
Among the most significant TRANSACTIONS OIL 'he
dav were sales aggregating 1913 shareS VI Nd
,jonal City Bank stock, which. according 10 d
news bureau report. had been pledged as colial
a-s, for = loan The principal sellers or TINS
stock for which q uniform price OF -So was on
tanned, were Talbot j Taylor & Co ana "A. a
Eo,,s-,an &. Co. A member of the former firm
said:
We found market to-day for lot Of City
4s-t stock hold bv customers and sold it.
II did not represent the calling of a loan.
A widespread report was that this stock was
the property Of a man identified with several
downtown banks. but this was denied by a rep
resentative of that interest One reason for the
pressure to sell stocks, ii learned yesterday,
was the fact that members of certain syndl-
dicates who had become subscribers on what
seemed fairly safe assumption that their sub
scr1ptions would not be called up. were being
confronted by unexpected demands for pay
nnents at an unexpected time, and in order TO
nquidate other accounts. This liquidation is not
confined 10 the Stock Exchange. for it is known
that within few days several large sales of
securities have been effected through local bond
houses az prices in some instances several
points below the market quotations.
a feature Of the trading yesterday was the
activity of the declining tendency of the bond
market. the Union Pacific convertible Is. for
instance a standard issue selling down ex-
ceedingly heavy transactions from 1045k to
103l2 and closing al 104. and the Burlington is
declining from :,59s to 941a. In the stock market
proper there heavy liquidation in the high
class railway shares as well as in the issues of
lesser standing.
Among the net losses of othe day were: Penn
sylvania. H. points; New-York Central ~;
Union Pacific, f5s; st. Paul, 124: Consolidated
Gas pa: Chicago and Northwestern =: United
States Steel common. 2$s; Steel preferred, rs;
Missouri Pacific. 2$s: Illinois Central ,; Erie.
2: Delaware and Hudson. Az; Manhattan, 1a4;
North American. s: Reading second preferred,
1@s; Rock Island, 81; Southern Pacific. .
The extent of the net decline since November
= the day preceding which the recession in
prices began which eliminated on November
IA is indicated in the following table:
Stock Nov 4. yesterday. Decline.
:; paul. ..........-ls5i& i675s I7s.
New~York Central. .........1lszs 1876 "a
PENNSYLVANIA 1895 l5lls 50
Illinois Central----..-..---.l45-z 1879
Union Pacific. .-.--.-......loss. 81. So
Southern Paciic-- 69sz 5.1a T.