The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1903-08-09
WALL STREET DEMORAl lied.
BY POOR BANK RETURNS.
BROKERS FEAR WHAT THE
NEXT WEEK MAY BRING.
Avalanche of Selling Orders Sends
Already Wavering Market
Into Wild Uproar.

I {
New York. Aug. s.-The list Of extreme
breaks in prices in to-day's stock market
conveys the best description Of the disor-
derby selling movement which followed
upon the appearance OF the bank state
ment. Another increase ct S.3s2.eo0 In the
loan account of the hanks. after week OF
! such painful LIQUIDATION as to verge upor.
panic at times, upset the newly found
equinfmity of the market, and an avalanche
OF selling orders came into the already
wavering market. Prices yielded with
downward plunge to the lowest prices gsn-
orally for the year. Where there were ex-
ceptions it seemed due principally to the
fact that traders we're SO busy with the
for the exempt stocks wall street has
Fbeen busy ali week with attempts to ex-
plain last weeks small increase In loans.
subject. SO that to-day's more Formidable
increase :ntensifies the obscurity. 1t Is
likely that the support to the market which
/ was accounted on Thursday. involved
loosening of the purse strings OF the banks
FOR. the purpose of checking the demoran-
| cation then threatening. 1t is also now
| agreed that much of the recent heavy
| liquidation in Wall street has been for re-
payment to banks outside OF Wall stree.
! not figure in the bank statement the re-
/. suit is to throw demands for renewals upon
| the associated banks.
Loans made at the stock exchange on
| Friday carry over until Monday. so that
to-day's demonstration was not due to ac-
prehension of next weeks proceedings.
Chief pressure to-day conferred upon the
pont to H0n mI Dansed aess Extreme
poiitan Street Railway lost as much. Atch-
tson. IS. St. Paul. 81. and Northwestern;
| Stock
| It's bid and 1876 asked Consolidated Gas
on Y Tucson ass5 Th. rp p to , aRs
F.! short side. caused some violent rebounds
running of rapidly in the ANAL dealings
| again. and the closing was very weak and
furiously active. Prices Of stocks have
made headlong downward plunge this
week through the previous low records for
the year. thus arousing renewed fears over
the srngake Of collateral loans and prompt,
| ing its selling out at what prices It would
bring: Resulting Generalization was ar
rested somewhat abruptly on Thursday.
was evidence s that some Of the very large
buying on that day was for account OF
the large banks and individual capitalists
ship in any movement In the stock market
Is Of great sentimental influence. II was
Of auidaon ' of .h fset ursen, Kind .c
by the recall Of loans witch borrowers were
unable '' s 5ssPTHnfSM 81 SHIFTS
The effect Of these Developments was
swift revulsion in sentiment In the market
leading to a quick assumption that a
coalition had been formed amongst the
great banks and capitalists to come to the
Of the market BY taking freely Of
had demoralized the market and destroyed
Indication In a long time Of any purpose
on the part of the dominant financial power
to lei. the LIQUIDATION takes its course
prolonged absence Of influential buying in
the market has been the cause OF great
uneasiness in itself on account Of the In
were themselves largely concerned in the
need for funds owing to unwtldly commit
ments In great promotions. This inference
tility between groups Of capitalists has been
involved in the fall Of prices and that pro-
jects Of absorption Of the properties at
down Of prices. II was evident that the
disorderly fall Of prices was getting b.,
disaster and the recover brousht Srest re-
to the stage where the rapid shfinkase Of
ket. while the holders of collateral for
loans. seeing the instability Of values were
eager to convert their security into ready
money.
FURTHER SHRINKAGE
The market was unit to absorb this sell.
ing. which aggravated the weakness and
lateral These are the conditions Of panic
and It is an axiom Of finance that the only
for Of sssgg panic ana ne
portunity for men to consider and arrange
ment affairs. A sudden contraction cot
widespread bankruptcy. The condition Of
the stock market Of the early part OF the
week had reached almost the opposite pole
Of the period Of the great bull mAfket. Then
there were practically no sellers Of stocks
at any prices and the continuance Of de-
mand without balancing supply left no
regard to investment return. By the middle
Of this week there seemed to be a paralysis
Of the demand for stocks at any stage Of
vance In the rate Of return on stocks Of the
highest grade. which was brought about
G.h dns and fhe to O.
tinued. there would be no limit to the de-
cline without regard to the intrinsic value
is necessary to check such a course OF
affairs. and that seems to be what was done
on .Thursday. A considerable uncoyced
market after tie declining tendency was
once overcome, and hopes are enteftA4ned
that support will be forthcoming for any
the liquidation remains an open one. The
movement Of prices has had little to do
level Of bank loans in face face Of the he Enormous
liquidation already achieved Is matter of
troubled conjecture and attempts to e.
plain 1t had ranged over q wide field with
out relieving the depressing influence OF
QUESTION IS CHANGED.
The question of wether the long shrink
age In prices OF securities and the result
Ing contraction Of credits viii react on the
general business situation. has changed Into
the question Of how tar the reactfonary In
nuence Will extend. Difficulties In nnanc-
ing new projects in the industrial ds1d, e.
pecially in the iron and steel trade, because
Of the contraction Of credits growing out
OF the money and stock market situation,
are admitted and there Is feeling Of adx-
lefty over the possibility Of q coming buai-
ness and industrial reaction. The critical
season for the crops Is always an unSoffling
factor which will not be entirely removed
until the crops are definitely made. Re-
ports OF railroad earnings are generally IA
vorable and railroad oficials report tho
PROJECTS for future traff1c with the question
Of possible car shortage again looming into
The violent break In the price
Of Consolidated Gas on the announcement
Of new issue of nsGre than $500 00o OF
stock and the attention given to current
Dad corporations Is an index Of the sensi-
tive condition of sentiment over Iarro alb
,orptions Of available credits by correlation
Borrowings The fact that only two stock
exchange failures were added to- the list
this week as result of the slump, was
accepted as further evidence of an lex-
strength In the position which
re: the long DECLINE.
Bonds were weak and unsettled and partly
In sympathy with stocks United
States D have declined ~ the Is registered