The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1903-09-29
GLOOMY DAYIN WALL STREET
SOURCE OF UNENDING LIQUIDA-
TION A BAFFLING MYSTERY.
Information ON, she subject OF Even
Authoritative Opinions Hard TO Got
Grave Disquiet and Apprehenaion-
Jacob n. schiR Thinhs the TrouBle
simply Fever which Must Run It's
Course.


New York, Sept. 2s.-Wall street
spent another gloomy day, which was
devoted mostly to trying to puzzle out
where the unending stream Of liquida-
tion came from and what caused 1t. In
formation on the subject or even au-
thoritative opinions were extremely
hard to get. The source of the selling
fling mystery and inferences usually
drawn from the personality Of the brok-
ers employed are altogether unreliable.
The conditions which prompt the Hqui-
sdation and the probable limits of its
extent are consequently the subject Of
grave disquiet and apprehension. The
reaction in the iron and steel industries,
the high interest rates, especially on
mercantile papers, and the curtailment
of production in other lines caused the
fear that over-extension has spread to
industrial and commercial lines, repre-
senting additional "unproductive in
terests" to be followed by liquidation
and contraction. The present course OF
the banks Is directed towards conserv-
ing the commercial and industrial needs
for credits and to this end they are in
exorable to all promotions and ffnanc-
ing projects. The miscarriage Of these
projects is still the cause Of most OF the
liquidation.
While the great majority of Wall
streets prominent men show a very de-
#cided disinclination to talk for publica-
tton, inquiry among the very highest
financial interests elicits statements
that nothing Of a serious or untoward
character is apprehended.
Jacob H. Schiff, Of Kuhn, Loeb & Co.,
commenting upon the stock market and
financial conditions, said:
1T is simply a fever which must run
its course. just as we had buying
fever two years ago, and even last
year. So the selling fever has now
taken hold os the people and reason
counts for nothing.
No matter what may be said as to
the causes which have brought about
the present situation. prevailing condi-
tions throughout the country do not
Justify the existing great decline in
substantial securities. The time will
come when people will wonder how con-
ditions such as we see now could have
EXISTED.
1T does not appear likely that the
much feared money stringency will ma
terialize. In fact, money is abundant
now, only those who control the supply
are afraid of the uncertain state of af-
fairs to part with it. The consequence
Is that we have superabundant sup
ply Of money on daily call, while time
money cannot be had in large amounts.
But this will change, especially as
It is almost certain that with the in
ability Of corporations to finance their
requirements, general business through
out she country must, after a time.
fall off and when that moment arrives
we shall have a large amount Of funds
seeking employment These surplus
funds will to some extent determine the
value of our. for ordinary purpose,
superabundant volume of currency and
we shall again witness an increased de-
mand for securities. So that 1t is not
at all unlikely, though this may seem
paradoxical, thatwhen railroad earnings
begin to decrease because of reduced
general business. the value Of railroad
securities will again begin to increase. y