The Montgomery advertiser., 1902-09-24
WALL STREET REVIEW.
THE MARKET SUBJECTED TO
DRASTIC LIQUIDATION.
The Constant Uncovering Of Fresh
Stop Los Orders Tumbled Stocks
Upon the Market in
Heavy Volume.

NEW YORK. Sept 23-The stock market
was subjected to drastic liquidation today and
Spectators of all classes from the smallest
to the greatest threw over their holdings WITH
increasing signs of disorder. There were
few pauses In the activity OF the selling; but
whenever the bears commenced to bid fer
stocks in the fear that they were over-extend-
ing their short account, 1t proved so easy
to get stocks that the downward course VI
prices was constantly renewed with con-
slant uncoyering Of fresh stop loss orders.
which tumbled stocks upon the market IN
heavy volume. The closing was furiousiy ac-
tive as with prices still pursuing a rapidly
downward course. The growing difficulty Of
Of stocks on margin was the root of the trou-
BILE. Yesterdays moderate calling of loans
by the banks instead of relieving the trouble
seemed to aggravate it. The disturbance Of
the money market was due in some part to
the operation of relief. which were through
new and unaccustomed channels. Thus the
high rate for money resulting from yester-
days loan contraction offered an inviting
opportunity for all who had available de-
posts and replace them on loan In the stock
market. This done by many classes OF
depositors all the way from th9fe with pri-
interior which keep many millions on deposit
for New York banks. This process. II 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
deposits withdrawn from the banks to be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 responsible TOT, the con-
t1nual finrries in money. The sentiment IN
the street was decidedly upset by the con-
viction that relief is Immediately avail
able for the stringent condition of the supply
of money. The early contribution OF nearly
a million. dollars 10 the market through the
sub treasury operations nearly wiped out
by yesterdays customs collections and to-
day there was deposited at the sub-treasury
$3.50. 600 for telegrophc transfer TO Chicago
and S 20 mn for New Orleans. While part
OF the Withdrawals Of deposits by interior
banks were reloaned here, other sums were
shipped away 1y express 10 ee' y tng crop e9
change at Chicago from par to 2oc discount
reflected the increasing pressure upon this
center for funds. Notwithstanding the higher
lever of money rates. 1t was noticeable also
that the sterling exchange rate failed to yield
to any material extent. The jump IN the tn,
prices of wheat and cotton has checked the
export buying and the making OF exchanges.
Private discount In London rose above the
that the bank rate will be advanced to 4 per
cent Thursday and such other obstacles IN
terposed to the movement OF goid 10 New
York as are possible. The amount of commits
sion exacted by brokers for time loans are
growing and there complaints of scarcity
owing to the withdrawals to the advantage of
the higa rates for call money. There IVES
considerable shrinkage today in prices OF Sc,
curities which involved calls for additional
calls on loans which was another factor In the
pressure in the money market At least one
powerful speculative combination liquidated
accounts to the extent of between so 900 and
90 600 shares of various stocks, most largely
tof Missouri Pacific. One of the most impor-
tant n1ainstays of the recent market was thus
withdrawn. An opening lift of 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 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 tho
coal region, unfavorahle crop reports both
for grain and cotton and the strained rela-
lions between Great Britain and Venezuela.
but the money situation overwhelmed all
other conditions.
Bonds were active and weak Total sales
(par valuel SIS. 545. 900. United States 2s
coupon and the SIS advanced u per cent and
the 2's registered declined u per cent on the
last call