The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1902-12-12
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YESTERDAYS STOCK MARK EFT.
Heavy Liquidation M Gets with Violent
Declines.

Heavy Liquidation Meets with Violent
Declines.
New York, Dec 1.-THE stock mark
ct had a demoralized appearance at
times to-day, when eager unloading of
securities was progress without re-
gard to prices. The volume of dealings
rose to over million shares, or about
double those of yesterday which in turn
were more than double those of the day
before. This greatly augmented volume
of liquidation met with very poor alb
sorption and violent declines were the
result There were points n the mark
ct where better resistance was shown
than in others, notably among the Penn
sylvania group, Reading, Amalgamated
Copper and Sugar. The last named
stock closed the day with an actual net
gain of small fraction. On the other
hand, the Rock Island stocks, the
United States Steel stocks and the Pa
Gifts generally proved easily vulnerable.
The extreme decline in Rock Island
common was 4B and the preferred Az.
The final prices were respectively "a
and higher than the lowest. United
States Steel lost 8 points and the pre-
ferred 2as, and their final prices were
only q, fraction better than the low
points. The unsupported condition of
these stocks had a strong sentimental
effect on the whole market The Vene-
zuelan situation exerted only a senti-
| mental influence. The real motive for
the selling was the growing conviction
that further extensive loan contraction
h. %o ba
ments for money between now and the
first of the year. There was more or
| less actual forced liquidation owing to
| the refusal of lenders to extend matur-
| ing loans, but many holders were NOV
| ed by apprehension that the same con-
| ditions would shortly become effective
| in their own cases, so that they threw
| over large holdings. Some of the larg-
| est lenders in the street also withheld
| their funds from the time loan market
with the av0wed intention of waiting
for higher rates on time loans. This
process served to keep some supply in
| the call loan market. AS high as 9 per
cent. was paid however, for call loans.
! Time loans for short periods were prac-
! tically understandable, and rates were
very firm for the longer periods. The
rates quoted were purely nominal and
| all sorts of devices were resorted to to
| increase the actual rate Of return over
the nominal interest rate, such as
charges for commissions and implied
| agreements on the part Of the borrow
err to withdraw only certain proportions
Of the amount loaned. Time loans ma
I turing at this time were the immediate
cause of the embarrassment of holders
| of stocks. Money brokers reported that
, there was not much calling in of money
| placed on call and that where maturing
| time loans to the local banks had to be
| paid off they were unable to secure ac-
conmodaton for borrowers from inter-
! ior banks. The rate paid in such cases
was considerably above the nominal
! rate Where the local banks are lend
! ing at all it is simply to supply the
| urgent needs of their regular custom
ers for routine business purposes.
The sterling exchange rate remained
! firm to-day and opinions were express
! ed that more gold would be sent to
! South America. The sub-treasury con-
tinues to withdraw large amounts from
| the money market and all rumors of
relief measures by the treasury depart
ment met with denials. To-days ex-
IRENE declines reached from L to 3
points quite generally and in some of
the less active specialties ran from to
12 The tone at the close was feverish
and unsettled but quite materially
above the lowest.
Bonds were weak in sympathy with
stocks Total sales par value $4,340 O00
United States IS and old 4s coupon
| declined Il per cent. on the last call.