The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1902-09-30

NEW YORK, Sept. 29.-The stock
market opened weak this morning and
the liquidation was continued in vary
ing degrees all day. During the last
hour of business belated borrowers
found the supply of available funds
exhausted and they ran the money rate
up quickly to 35 per cent. Meantime
there was a wholesale throwing over
of stock all around the room, and the
aspect of things was rapidly taking on
an appearance of panic, when the pres
ident's gavel fell and trading was ended
for the day. Prices were still tumbling
rapidly in all directions and the one or
two feverish rallies where the bears
were Scrambling to take quick profits
made no impression on the general de-
moralization Of the market.
Some Of the principal losses were
Louisville, lis; st. Paul, 95s; Atchison
SIS; Illinois Central, 6 Is; Pennsylvania,
51s; Baltimore & Ohio, SIS; Canadian
Pacific, 6; North Western, 6%; General
Electric and Westinghouse Electric, 8
each; Manhattan, SIS, and long list
of prominent stocks over points.
Four-Point Losses Common.
Losses up to 4 points are common
were entirely out of the money market
and the trust companies were very
small lenders in the market. Funds of
out of town banks and of individual
lenders made up the visible supply. 1t
was very evident that there was a
very large number of security holders
who hoped that rates would work
easier today, encouraged to this view
by the notable recuperation achieved
by the banks last week and the con-
siderable margin Of surplus reserves
revealed by Saturdays bank statement.
This class held off during the early
part of the day from supplying their
needs, hoping that they could maintain
the securities money market by re-
framing from early demands upon it.
The call loan rate was pretty quiet
up to noon, at about Is per cent. 1t
flurried during the noon hour to 20 per
cent, when the demand again became
less urgent. The consequence was a
wild scramble during the final hour to
secure loans and a general sacrifice of
holdings on the part of those who
could not secure accommodation.
Accommodations Refused by Banks.
The events of the latter part of last
week admonished the banking COM
munity that there was a speculative
element persisting in a determination
to place all the funds they could Sc
cure in marginal holdings of stocks.
Further accommodations for this pUr-
pose were peremptorily refused by the
banks.
The effects of this determination de-
veloped at the stock exchange before
the day closed. The liquidation COM
menced in London before the opening
here and this had the effect of throw
ing about 10000 shares for sale on the
local market at the opening on ar
bitrage account. This was supposed
to be for account Of a leading Amer
lean operator now in London. All of
the recently active speculative pools
and combinations were active in the
liquidation before the day closed.
1t cannot be said that there were any
new unfavorable developments in the
money situation. Rather there was a
common recognition of the future de-
mands to be met by the money market
and the inadequacy of any available
source of repleniShment to meet these
requirements. The improved position
of the banks had the effect this morn
ing of stiffening the foreign ex-
change market and cutting off the
hope Of further relief by gold imports,
but yielded no relief to speculative
borrowers.
Not Enough for Interior Demand.
The various eXpedients by the treas
ury, the anticipation of October in
terest and dividends by some very
large corporate interests and all other
means that have been tried have sim
ply served to demonstrate that the
money and credits locked up in specu-
lative commitments in the stock mar
ket have not left enough to meet the
interior demand of circulation and the
Sub-treasury demand for customs pay
ments. 1t is evident that the highest
interior demand is yet to be met.
Apparently all interests arrived at a
common determination today to take
the short way to the only means of re-
lief available, which was by selling
out stock and paying off loans. Only
tomorrow's developments can prove
how far the necessary work has been
accomplished. The disappointment
over the failure of the st. Paul direc-
tors to propose a stock increases the
uneasiness Of the Louisville minority
stockholders as to how they are to be
treated in the transfer of control and
the further surgical treatment necessi-
tated Of the presidents wounded leg
intensified the disposition in the stock
market. But all other considerations
were eclipsed by the difficulty Of Dor
rowing money to carry stocks.
The bond market was weak, but to a
much less degree than stocks. Total
sales, par value, $3,915,O00. United
States bonds were all unchanged on
the last call.