The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1903-09-29
W ALL STREET
IS GLOOMY
Stream of Liquidation With
out Any Explanation.
.DlsINcLIN ED TO TALK TALL
Prominent Men in World of Finance
Unable or Unwilling to Assign the
Cause for Depressed Condi-
ton Of Securities.
.DlsINCLIN ED TO TALK
lspecial to The rimes-Dispaatch.)

H4.EH l(tSDeCial TO Inc liIlleS-lIl5
NEW YORK, Sept. 2S-Wall Street
spent another gloomy day, which was
devoted mostly to trying to puzzle out
where the stream of liquidation came
from and what caused 1t. Information
on the subject. even authoritative opin-
ions, 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 profitable
market for their holdings at that level.
From this it is inferred that the buyers
of a class which decides market move
ments would not be heard Of in melting
others to buy If they were themselves
present market. The source OF selling
orders in the present market is battling
mystery and differences usually drawn
from the personality of the brokers en-
ployed are almost invariably at fault.
The conditions which prompt the liquid
alton and the probable limits of its
extent are consequently the subject of
grave disquiet and apprehension. 1t was
the failure of stock jobblng operations
that brought the early selling and the
losses represented were almost wholly
on paper, as the previous gains had been.
But later episodes represent the failure
OF enterprises In which extensive capital
had been embarked at demostrably un-
productive employment. Capital thus
sunk Is capital lost.
DREAD OVER SITUATION.
Comptroller Ridgeley's opinion. ex-
pressed before the Maryland and WASH
ington bankers that "a large percentage
of the loaning power has gone into uns
productive 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-eNtension has
spread to Industrial and commercial lines
representing additional "unproductive In
terests." to be followed by liquidation
and contraction,
The present course OF tho banks is d.
rected towards conserving the commercial
and Industrial needs for credit and to
this end they are ineXorabe to all pro-
motions and financing projects, The mis-
carraige of these projects is still the
cause of most of the liquidations.
w ME lne great IHHJoFilS VI W al
Streets prominent men show decided
dislncination to talk for publication. In
uulry among the very highest financial
interests ellcts statements that nothing
of a serious or untoward character is APP
pretended
PARADoXIcAL.
Jacob II. Schiff, of Kuhn, Loeb & Co.,
commenting upon stock market and finan-
clal conditions. said "No matter what
may be said as to the causes which have
brought about tho present situation. pre-
vaiing conditions throughout the country
do not justify the existing great decline
In substantial securities.
"It does not appear likely that the much
feared money stringency will materlalize,
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 tlmo fall off and
when that moment arrives we shall have
a large amount OF funds seeking employ
ment, and we shall again witness an in
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 reduced
general business the values OF railroad
securities Will again begin to incraaSe."