The sun. [volume] (New York [N.Y.]) 1833-1916, 1902-11-15
FINANCIAL AND COMMERCIAL.
ERiDAY NoY. |

FRIDAY. Nov. IA
| Stock Exchange values to-day suffered
the sevcrest test yet applied to them since
/ quotations began TO recede two months ago.
and IL Is clear. too. that the decline has
now reached a point where personal and
cooperate credit is also under fire Under
! ordinary circumstances IL would be safe
TO assert after the break in prices thar
occurred to-day. falling cumulatively as il
| did upon the great declines of preceding
! days. that the ordeal was over. On several
| recent occasions, however. the same pre-
I diction has seemed reasonable, but has
/ proved untrue; SO that perhaps the only
sure prophecy that can now he made is
! that at the pace at which events are pro-
ceeding the "cleaning-up process" as
! bankers designate IL, will be very thor
oughly accomplished in a pretty short
time. The price Of almost every security
on the list fell to-day like plummet. The
| greatest drop was that Of st. Paul common.
which dropped 10 points from the high
point of yesterday and points during the
day; and the fact had az much TO do asany
! other with the markets unsettlemert.
Other stocks fell in proportion. Brooklyn
Rapid Transit. curiously enough. being
almost the only exception and showing net
gain of u of a point, Transactions were
very heavy.
II would he idle 20 look for the cause Of
to-day's conmotion In any particular de-
velopment in the news. Bank failures ara
never a pleasant event, and the enforced
closing of national bank In Boston did not,
Of course, exercise a cheering effect upon
halaac tho Rpat fai /, ira,
was due, IA everybody realized, to dry rot
rather than TO any acute cause, and it in
no way affected financial interests here.
Another cut In prices was announced by
the National Tube Company in PittsburC,
but this matter excited little comment
and few people seemed TO be aware of il
Neither was any part icular discussion heard
of the announcement by the Pennsylvania
Railroad Company Of an advance of 10
per cent In the wages of practically all It's
employees. The action Of the Pennsvl-
vania's management would, in a calm
market, be considered by the fnan-
cial community from two distinct points
of view. In one way, the effect
Of the announcement would be decide
edly bullish. for il would afford induhi-
table evidence that the greatest rail-
road corporation in the country sincerely
believed that the present business pros
perity had long lease of life yet before II.
The suggestion arises, on the other hand,
whether such an advance in wages as ac-
corded will not provoke demands by the
employees of other railways for a similar
advance in their pay. and whether other
railroad companies are In condition, like
the Pennsylvania, To allow II. London
exchanges in Paris fell "a centime and
sterling exchange here held firm. so that
we are now close TO the gold-exportulg
point. Indications of Tomorrow bank
statement were more favorable than was
anticipated yesterday and pointed 10 IN"
gratifying fact that money is returning
from the country. The banks have lost
TO the Treasury 81, So, 400, but have gained
from the interior 1881 200 and In new gold
81, O5l 400. 30 that their net cash loss for the
week Is only 81 ,847 800. as against a much
larger figure previously estimated. Thee
was nothing in all this to cause the state of
| sem-panic into which the market fell after
| midday.
Some bank officers ascribed the violence
| of the days break TO the enforced sales by
| country banks of securities carried by
| them in loans in cases where those making
the loans had found il impossible TO pro-
| tect their collateral by further margins.
The real reason for the selling, however,
| lay. undoubtedly. in the widely dispersed
feeling that the failure of the market 10
make recovery after the notable recesSious
in price already recorded Indicated that
there was something wrong with the situa-
/ ton who's. character had not yet been fully
! tbick mud f4.f
! abor this and that Spectator and this
| and that institution and corporation. both
in this city and out Of it. but none Of
[ these rumors developed into tanglbllty
at the close Of business; neither were
| there any individual or commission
| house failures announced. although
/ less havoc in quotations has on previous
occasions carried numberless firms and
| operators to the ground. As the selling
value Of securities dealt In in this country II
/ probably less by 81 OOO, 900 600 than II was
! two months ago, enormous losses must
! have been sustained by somebody, and tho
credit and financial position Of very many
people must be weakened. This much
goes without saying. and il is the general
! basis of the rumors that are now filing
| Wall Street. That none of those having
to do with Wall Street affairs has aic-
cumbed 10 this enormous financial stress
is proof that things are in stronger shape
than is commonly supposed. Such declines
a. those of to-day cannot be repeated with
out speedily exhausting the power behind
them and attracting solid investment buy
ing. If the financial atmosphere is not yet
thoroughly cleared it ispretty nearly so,