Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1902-12-15
IB[ STOCK MARKET
Last Weeks Slump Came as
a Surprise to Wall
Street
THE MARKET IN BAD SHAPE
Some BuIIst Sentiment Still Remains,
But the Tension is Strained and Fear
of Disastrous Break Is Apparent
Money Coming From the West-Gen-
eraI News of the Day.

/ New York, Dec. 15.-It was a wor-
/ risome time last week for spectators
Lin the stock market. Business on the
stock exchange in the first few days of
| the week was almost entirely stagnant,
ard most of those having interests at
stake had settled down to the convic-
of speculative deadlock that was likely
| to last until the end of the year. The
commission houses reported that their
.oans were greatly reduced, and that
they were carrying very few securities,
while the bears" confided to their in
| Inmates that they must hold strictly in
mind the late Mr.. Gould's famous
maxim that" it was never safe to sell a
| bull market"
1t was the general opinion, in other
words, that the market had settled
| down to a long rest, and was, on the
whole, in a pretty safe position In the
twinkling of an eye all this was
changed. Prices began to sag a little;
then weakened sharply in one or two
stocks, and finally broke with violence
approaching that of a panic. The par
ticular event, il there was particular
event, that caused the trouble is still
not clearly defined. The money situa-
ton is the abiding cause of course, of
the present depression in the market,
but stocks began to decline on Wednes-
day, while money rates We're yet uIl-
disturbed, and they recovered on Fri
day while these rates We're at their
highest point.
Some said that the banks were not
satisfied with the partial liquidation OF
holdings made by certain spectators,
and had notified these operators that
they must further reduce their lines.
Others declared that the whole affair
was solely the work of the room trad
ing element, who discovered that there
were many stop-loss orders in certain
stocks, and that 1t was a comparatively
easy matter to .'go thru" them.
The weakness of the steel stocks had
great deal to do with the general
fan, and ii was rumored that a very
trade had disposed of his interest to
the United States Steel corporation and
lad identified himself with newly
formed independent steel-manufactur-
ing company, whose rivalry of the
United States Steel corporation was
said to be formidable. There might
have been some truth in some or all
of these stories, and the selling OF
stocks when once started was undoubt-
eddy assisted by the Venezuelan diff
Guilty.
The clleapening of the value of money
may come either from relaxation OF
the present financial stringeney in
normal and proper way, or from an
imitation of the country's circulating
medium such as that which would pc
accomplished by bank asset currency
system. A cheapening of money due
to the latter cause would, of course,
bring about a great rise in the price OF
all the commodities, stocks and bonds.
iron and potatoes. which money buys.
But it would be the direst evil that
could befall our nation.
The temper of speculation in Wall
street is, despite all that has happened,
bullish. 1t is realized that the rail
roads and the industrial concerns OF
the land are making magnificent earn
ings and that all these concerns are
in far better physical shape than they
were. Their value, as measured by
earnings, has increased, subject only
to the. as yet, undetermined drawback
of the increase in necessary expenses.
The orders ahead" in the steel and
other trades seem to insure another
profitable year in general business.
Such things as cancellation of orders
when financial clouds gather, have,
however, been known.
Conservative bankers declare that
they do not look for any pronounced
ease in money before the middle OF
February, or perhaps not until the end
of the winter. Wall street remembers,
however, that many of the bankers who
are now declaring that they see tight
money ahead for an indefinite period
were large lenders of funds for six
months at Az per cent in July and
August, and at that time declared that
money would remain easy thruout the
year. 1t may be these bankers are
mistaken now as they We're before.
There are so many complications in
cent guess regarding it's event is diff
cult There have been some incidents
recently that have made it look as
tho rates for the use of money were
likely to rule high for very long
time, and fears of this nature have been
reflected in the current speculation.
When great corporations of I'M
doubted credit pay Z per cent for the
use of money for a year, and when
very considerable sums of money can
be placed at such rate for such a
period, it does not seem as tho there
was going to be any great rush of in
vestors to buy 4 per cent railroad
stocks or 80 per cent and even 4 pei |
cent railroad bonds
The GrinneIl News.