The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-09-29
ANOTHER SUNLESS
DAY IN THE STREET
Puzzling Over an Unending
Stream of Liquidation.
LIPS ARE TIGHTLY SHUT
A Few Prominent Men Say That Nothing Of q
Serious or Untoward Character is Appre-
hended---Great Rush by Ssp-
tembef Shorts.
(By the Associated Press }

(By the Associated Press.)
New York, Sept. 2S-Wall street spent
another gloomy day which was devoted
mostly to trying to puzzle out where the
rnending stream of liquidation came from
and what caused it, information on the
subject, even authoritative opinions were
extremely hard to get. 1t is pointed out
that the great bankers and capitalists
were not heard Of in warning last year
during the high range OF prices while
they were seeking a profitable market for
their holdings at that level. From this
Il Is inferred that the buyers of a class
which decides market movements, would
not be heard of in melting others to buy
if they were themselves seeking securi-
ties on cheap terms in the present mar
ket. The source of selling orders in the
present market is battling mystery and
inferences usually drawn from the per-
sonality of the brokers employed are al
most invariably at fault.
The conditions which prompt the hqui-
dation and the probable limits of its ex-
tent are consequently the subject of
grave disquiet and apprehension. 1t was
the failure of stock jobblng operations
that brought the early selling the losses
represented were almost wholly on paper,
as the previous gains had been. But
IL ter episodes represent the failure of
enterprises in which extensive capital had
been embarked at demonstrably uppro-
ductive employment Capital thus sunk
is capital lost.
Comptroller Ridgeley's opinion express
ed before the Maryland and Washington
bankers that "a large percentage ef the
loaning power has gone into unprodueiive
interests" formulates the dread of Wall
street over the present situation. The
reaction in the iron and steel industries
the high interest rates, especially on
mercantile paper, 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 inter
ests" to be followed by liquidation and
contraction.
The present course of the banks is di-
rected towards conserving the CONNER
cial and industrial needs for credits and
to this end they are inexorable to all
promotions and financing 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 decided
dissemination to talk for publication, in
quiry among the very highest financial
interests elicits statements that nothing
of serious or untoward character is
apprehended.
Jacob H. Schiff, of Kuhn, Loeb and
Company, commenting upon stock market
and financial conditions, said:
"No matter what may be said as to the
cause which have brought about the
present situation, prevailing conditions
throughout the country do not justify
the existing great decline in substantial
securities.
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 in the uncertain state of affairs
to part with it.
"But this will change, especially as it
is almost certain that with the inability
of corporations to finance their require
ments, general business throughout the
country must, after a time. fall off and
when that moment arrives we shall have
large amount of funds seeking employ
ulcnl, anu We SHdti again WltIlCSS al liz
creased demand for securities. So that
| it is not at all unlikely, though this may
seem paradoxical, that when railroad
earnings begin to decrease because of re-
duced general business the values of rail
road securities will again begin to in
crease.
New York, Sept. 2S.-There was a wild
rush of September shorts to cover in th,
cotton market this morning and thu
price for delivery rose and fell in man
ner that recalled the earlier days of the
bull campaign. Closing on Saturday at
1112, it opened this morning at Ills. The
| next sale was at 11.17 and from this it
jumped to 1125. Then it was forced IN
5 and 10 points at time until 1905 was
reached a net gain of about a cent a
pound or nearly 500 on trading contract
of 100 bales. At this level the demand
subsided somewhat and reacted to IL so.
the decline being almost as rapid ana
sensational as the upward movement 1t
was notice day for September, and while
notices of considerable cotton We're issued
they were reported to be promptly stop
ped by a broker representing the New