The age-herald., 1902-05-11
STRIKE ORDER
 AFFECTS STOCKS Interest Dead But Volume 0
 Liquidation Trivial POOR SH0WING.BY BANKS Struggling Declines On Light Selling Was the Rule of the Session. Bonds Moved In Marrow
 Range All Week.
POOR SH0WING.BY BANKS

New York; May 10.-The effect or the strike order of the anthracite mine work CTS seemed to kill speculative interest in the stock market today. Prices went low CT, in some cases notably so, but the vol u,ne of liquidation was triyal and was rather less in the coalers than in some other departments of the list. There were large individual selling orders in Union Pacific, St. Paul and number of other prominent stocks in which speculative party has been active recently on the assumption that dividend increases were to be looked for in those stocks. Tho unexpectedly poor showing by the banks had much the same effect on stocks, caus- ing struggling declines on light selling. The opinion was heard that the anthra- cite operators prefer a strike at this time, if one is inevitable, rather than to have it come in the fall. This does not consist with the confident assurance that has been professed in Wall street that there would be no strike at all. The strike is not taken very gravely even now, as is shown by the effect upon stocks of the coal carrying roads The loss of oyer s6, 900, 900 in cash reserves compared with estimates based on the known movement of currency as reported by the banks themselves of about $2,0000O0, was rather vaguely attributed to local movements. The loan contraction of $2,224, 800 showed but meagre result of the stock market liquidation. There Is nothing to show how far the much discussed position of the trust companies may have been all tered for the better by the weeks events.
 With discounts in Paris and Berlin be- 1,FP 1 six months at 4si to per cent in New York and even higher for shorter periods, the expansion of our loan obligations in foreign money markets is naturally in- creasing and represents a balance to be met at some future time. This weeks stock market started off in the throes of the anxiety caused by the suspension of three stock exchange houses as the out growth of the collapse of the Webb-Mey- CT group of securities, which had been inflated by vigorous process of manipu- lation and speculative buying on credit The stringency in the money market had the inevitable effect of calling in loans and inducing discrimination against just this class of collateral. With credits cur tailed, the manipulators found them selves unable to support their stocks and the forced liquidation caused an utter collapse. Es the event proved, the gen
 
 der the shock, with the result that senti- ment was greatly reassured and confi- dence in the soundness of the position of the market became more general than for some time past. The episode has been called ia house cleaning in Wall Street. There a widespread apprehension that the condition of affairs revealed by the episode and by the internatioal power collapse might have an indefinite exten- sion. To say nothing of the many new se- curities which have recently been pushed forward into speculative activity and ad- vancng prices, there are many old es- tablished high grade stocks which have been lifted to unprecedented high grade stocks which have been lifted to unprece- dented prices for which there are no known grounds to account.
 Stocks of this class gradually accumu- late in the hands of investment holders either for purposes of control or indiffer- ence to the market fluctuations in the price. This may either be in the con1- dence that the ultimate value of the property will justify present extravagant prices or in the realization that the mar keting of large holdings would break the price. The small floating supply makes such stocks quickly responsive to small demand or to manipulation which is prac- ticed in some stocks for the sentimental effect upon the general market. Such stocks are, however, equally sensitive to light liquidation. There are many stocks In the present market which are sup posed to be at price levels thus attained. The fact has been often pointed out of late that the present volume of credits in the country is greatly expanded and feel ing on this point was made additionally sensitive by the action of the clearing house authorities last week in resolving that outside institutions admitted in fu- lure to clearing house privileges must make weekly reports for publication of their condition and must maintain cash reserves in their own vaults equal to those required of clearing house mem bers. This was obviously an admonition that the local trust companies should maintain cash reserves against the large collateral loans which they have out, in- stead or relying on their cash deposits with the banks. which figure as cash rs serves there also.
 The bond market has moved in symna thy with stocks over a much narrower range. United States 3s and the new 4s declined A per cent as compared with inc closing call of last week.
 New York Stock Market.