Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1902-09-24
SLUMP N SECURITIES
Drop in the Bank Balances
Causes Apprehension in
Wall Street
INTEREST RATES ARE GOING UP
Small Holders of Securities Obliged to
Close Out Because Of Increased Mar
gins-slump in Nearly All the Sc
curities Due Largely to Money
stringency. ...S-4A..-

ginS-SIump IN Nearly All tne &c.
curities Due Largely to Money
Strngency.
New York, Sept 24.-The unexpected
news that the president was compelled
to abandon his trip and submit to a
surgical treatment, coupled With the
banks continuing their policy of call
ling loans resulted in a violent slump
on the stock exchange today, some
Heading stocks losing five points. Large
speculative combinations which have
lpersistently held UP prices for several
weeks past unloaded very large hold
linss and abandoned all attempt to sus-
tain the market.
New York, Sept. 24.-Wall street
yesterday received money jar that
fractured prices and caused small
margin traders to be closed out. The
crumbling of quotations, while legiti-
mate result of high interest rates. had
been successfully withstood during the
last ten days. But 20 per cent money
was inevitably certain to assert Itself,
and the delusive assertion that the
big men in the market would hold ~
up against all adverse influences was
shown to be a cream only.
RanKs themselves evinced their ap-
prehension, and freely called loans
Pools operating largely margined ac-
counts were given a severe shaking by
demand for higher interest and mar
gins. One pool was credited with liquid
ating 100000 shares. AS the day wors
on and the loss in values continued
there came near being decentralization,
and 1t was distinct relief when the
exchange closed for the day.
On the surface Wall street has been
serene. But while for prudential rea
sons this notion is given currency. the
banking interests. which take care of.
the money situation when it becomes
critical, are watching closely the stu
alton which has resulted in the pres
en-. high rates for call money. THESE
interests, understanding the influence
Of sentiment profess optimism. while
figuring on possible, if not probable.
contingencies.
The present continued high rates
have been expected by these interests.
The general public, however, has had
a different notion, and assisted in main
tanning the stock market. But these
outsiders, who had begun to believe
prices would not go off materially be-
cause they had not done SO in the last.
fortnight, found at the close of todays
session they had been placidly resting
on an attractive but brittle theory.
1t can be asserted on authority that
the banks have no concerted plan or
plans for taking care of the money
market. They may import some gold,
but when not seeking to influence pub
lie sentiment they acknowledge that
imports may be expected to afford only
partial relief. Should occasion arise
the National City bank is prepared to
convert $7,.50O,000 of British consols
.nto gold The banks customers in the
west would probably convert $4,000,
900 more consols into specie. But in
sdications tonight point toward liquida-
ton in the market as the logical means
OF adjusting the money situation.
Instead of believing that the west
will take care of the crop moving
money demands there is an entirely
different expectation. Technically, the
west may do more this year than 1t has
in the past for moving the crops. but
st will draw down it's New York bal
ances In order to do so. While this
is Chicago money, it is being used
in Wall street just the same as Wall
streets own, and 1t is merely a play
upon words that does not suggest
the actual situation to say that western
money will be adequate for western
needs. AS Chicago this year, at the be-
ginning of the crop movement. was
unusually well supplied with small bills,
it did great deal to meet early de-
mands. But shipments of currency
have been liberal, and it is now ex-
pected that New York will be called
upon for further Chicago balances.
Again, instead OF believing that the
western movement from New York is
over quite the contrary opinion is held
by the people who do things. The small
grains of the southwest have just be-
gun to be marketed, and the crops
farther north are late. Wall street
operations have been expanded thru the
lending of money here directly by OUT
side cities, such as Chicago and Boston,
and even smaller centers that have
taken temporary advantage of the high
interest rates obtaining. In that way
the money situation here has been
rendered abnormal.
There is no CO. ordination between the
,,,,A or to-. WIN =
Wall streets own productive capacity,
so to speak. The outside funds which
are being loaned here so freely are sub
ject to call. With further continuance
of the high rates there is the usual pos
sibility of some one being forced to
liquidate and slight scare would mean
rapid contraction Of loans and the
withdrawal of the money which is here
temporarily for a quick turn. Western
banks have been known before to grow
apprehensiye over clearing house GER
tificates.
An important staying influence in the
stock market is undoubtedly due to the
fact that railroad stocks are now held
by rich men, who will not part with
them thru fear of permanently losing
them. The public is decidedly the small
end Of the stock market. The principal