Evening star. [volume] (Washington, D.C.) 1854-1972, 1902-09-23
FINANCE AND TRADE
Dear Money Caused Slump
in Stocks.
SOME SHORT SELLING
WESTERN CLIQUE LET GO LONG
HOLDINGS.
st. Paul Showed Considerable Resist
ance to the Downward Trend
Of the Market.
SOME SHORT SELLING

Special Dispatch to The Evening Star.
NEW YORK. September 23.-Liauidation
Of loans on a more natural scale than yes
terday was the chief characteristic OF to-
days stock market Prices suffered in con-
sequence, but this too was more natural
than the manipulation which sought to
force advances in the face of yesterdays
20 per cent money. The banks must be
strengthened. and the sooner it is done
the least troublesome will be the process.
Commission houses sold freely at one time,
and a prominent speculative pool sold be-
tween $4,000 and $4,000 shares Of various
stocks.
In some quarters the recognition OF the
inevitable inspired q desire to force out suf-
ficient stocks to satisfy the banks and to
remedy the financial condition with all pos
sible speed. Consequently artificial support
was withdrawn and the street IS encouraged
by the natural manner In which the mar
ket absorbed long stock.
In the Gould shares there was free dis
tribution Of stock. Missouri Pacific. Texas
Pacific, the Wabash issues and all the
southwestern stocks sold Off for substantial
declines from the, opening level
Union Pacific was heavy nearly all day,
and there were liberal offerings in Penn
sylvania and New York Central.
The coal stocks were heavy, Erie, Read
ing and Ontario and Western finding
lower level under big dealings. The soft
coal roads, Baltimore and Ohio especially.
sold off under liquidatng sales. The news
from the coal strike was not offered Sc
riously in explanation OF this selling.
The Industrial list was weak under scat
tered selling and the whole tendency of the
day was toward conservatism.
ST. Paul showed greater resistance than
any other stock the list and rallied
easily from its frequent declines. There is
accommodating evidence that this stock is
being accumulated for reasons quite beyond
a
and the Gould party may unite in some
general scheme for carrying out the trans
continental project Of the latter Such an
alliance would mean exciting times later on
between this aggregation of capital and
experience and the an-Vanderbit-Cas
satt party.
The market Of today and the markets for
the next six weeks are likely to reflect SIM
liar characteristics. Money has every ap-
pearance Of being active until after the
new year. The high rates may disappear
from time to time, but there will be Wig
orous demand. The advance in the whole
market must give way. at best, to higher
prices for few shares showing exceptional
inducements.
Advances will be checked by advances in
the money rate and declines will be stayed
by the covering Of short stock. Just at this
time the short interest Is too small to help
much in rallying prices, but few days Of
liquidation will revive selling on rallies.
There Is practically nothing wrong with
the market except depleted reserves. The
banks made the big market and the banks
will unmake 1t.
The western element which found such a
cordial welcome in banking circles few
weeks ago had to sell stocks today. Money
loaned at 10 per cent. and the west did not
send in the millions that were~said to be
in reserve in that section should the need
arise. The subtreasury pays out a small
sum to the banks. but absorbs more at the
customs house.
October interest must be met and here Is
another certain drain on the banks. To-
days selling averaged some 100000 shares
an hour, and was conducted without the
slightest indication of alarm. Unless all
signs fail there will be many such days.
Some stocks are likely to do more than
their share Of remedial work and get down
under value There are already signs, on
the part Of the country of a preparation to
take advantage Of that time.