The Birmingham age-herald., 1903-08-10
STOCK MARKET
 TAXES A PLUNGE
Avalanche of Selling Orders
 Added to Demoralizatlon
SEVERAL EXTREME BREAKS
It Iss Now Agreed That Much of the Recent Heavy Liquidation In Wall Street Has Been for Re-
 payment of Banks.


 New York, August S-The list of ex- treme breaks in prices in todays stock market conveys the best declaration of disorderly selling movement which follow ed upon the appearance of the bank state ment Another increase of B. SS2. 600 in the loan account of the banks, after week of such painful liquidation as to verge upon panic at times, upset the newly found euuanimity of the market and an avail anche of selling orders came Into the already wavering market. Prices yielded with a downward plunge to the lowest prices generally for the year. Where there were exceptions 1t seemed due principally to the fact that traders were so busy with the active stocks as not to have time to spare for the exempt stocks.
 Wall street has been busy all week with attempts to explain last weeks small increase in loans, without any concensus of opinion on the subject so that today s more formidable increase intensifes the obscurity It IS likely that the support to the market which was accorded on Thursday involved a loosening of the purse strings of the banks for the purpose of checking the demoralization then threat ening. It is also now agreed that much of the recent heavy liquidation in Wall street has been for repayment to banks outside of Wall street and to trust com panies whose showing does not figure in the bank statement. The result IS to throw demands for renewal upon the as- sociated banks Loans made at the Stock Exchange on Friday carry over until Mon
 1. afarafI lon a not due to actual further calling of loans' but to apprehension of next weeks pro ceedings.
 Chief pressure today centered upon the Pacifcs Union Pacific plunged downward bs4 points to 65A. Missouri Pacihc's eX- treme loss was 4% Brooklyn Transit and Metropolitan Street Railway lost as much. Atchison. S5s; St. Paul, 3ls, and Northwestern preferred, '. The last named stock closed 175 bid and l95 asked. Consolidated Gas was eff "A; Great Northern preferred B. and Delaware and Hudson 4. The rush to take quick profits by the room traders on the short side caused some violent rebounds from these low figures, but the market was running off rapidly in the final dealings again, and the closing was very weak and fu- riously active.
 Prices of stocks have made headlong downward plunge this week through the previous low records of the year. thus arousng renewed fears over the shrink age of collateral on loans and prompting it's selling out at what prices it would bring. The resulting demoralization was arrested somewhat abruptly on Thurs day; by what cause it was not clear. There was evidence that some of the very buying on that day was TOT some large banks and individual capitalists of the largest resources, and whose leadership In any movement in the stock market is great sentimental influence. It was ob- served also that there was less pressure of luuidation of the urgent kind, which Indicated the unloading of collateral by the recall of loans, which borrowers were unable to respond to. The effect of these developments was a swift revulsion in sentiment in the market leading to a quick assumption that a coalition had been formed among the great banks and capitalists to come to the rescue of the market by taking freely of offers and by lending of money and cessation of the selling out of collateral. which had de- moralized the market and destroyed its power of absorption.
 The question of the end of the liquida- dation remains an open one. The move ment of prices .las had little to do with the news Of the week. iie 5uStdiiiSA level of bank loans in face of the enorm- ous liauidation already achieved, is matter of troubled conjecture and at tempts to explain it have ranged over wide field without relieving the depressing influence of the fact. The question of whether the long shrinkage in prices of securities and the resulting contraction of credits will react on the general business situation has changed into the question of how far the reactionary influence will extend. Difficulties in financing new pro- iects in the industrial field, and especial ly in the iron and steel trade, because of the contraction of credits growing out of the money and stock market situation were admitted, and there is a feeling of anxiety oyer the possibility of coming business and industrial reaction. The crit ical season for the crops Is also an un- settli,~- fa ~for, -''-- -',' ,,ot be entirely relieved until the crops are definitely made.
 The fact that sonly two stock exchange failures were added to the list this week as a result of the slump, was accepted IS further evidence of an extraordinary strength In the position which met the long decline.
 Bonds were weak and unsettled and partly recovered 'n sympathy with stocks.
 United States 2s have declined ls, the 3s registered and old As 14 per cent on call.