The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1903-09-29
CEASELESS
CURRENT Of
LIQUIDATION
Wall Street Marvels at
Flood Of Selling
Orders.
Spectators Fail to Fathom
Source Of "Unloading"
Operations.
Leading Financier Says They Are
Due Simply to Clever" Which
Must Be Allowed to Run
It's Full Course.

NEW YORK. Sept 28.-Wall street spent
another gloomy day, which was devoted
mostly to trying to puzzle out where the
amending stream of liquidation came from
and what caused it. Information on the
subject or even authoritative opinions,
were extremely hard to get. 1t is pointed
out that great bankers and capitalists
were not heard giving warnings last year
during the high range of prices while
they were seeking profitable market for
their holdings. From this it is inferred
that the buyers of class which decides
market movements would not be heard of
melting others to buy if they were them
selves seeking securities on cheap terms
in the present market.
There is, in fact, rather a notable lack
of public statements by men of authority
pointing to the cheapness of stocks, which
were heard from time to time during the
course of the long decline and at price
levels considerably above the present. But
it is equally true that men seeking a
market to realize ready money at forced
sales of securities are not likely to miss
any means of concealing their transac-
tions The source of selling orders in the
present market is a battling mystery, and
differences usually drawn from the per-
sonality of the brokers employed are al
most invariably at fault
FAILURE OF ENTERPRISES.
The conditions which prompt the liquf-
dation and the probable limits of its ex
tent are consequently the cause of grave
disquiet and apprehension. 1t was the
failure of stock jobbing operations that
brought the early selling, and the losses
reported were almost wholly on paper,
as the previous gains had been.
But later episodes represent the failure
of enterprises in which extensive capital
has been embarked, at demonstrably I'M
productive employment. Capital thus sunk
is capital lost
Comptroller Ridgleys expression, used
before the Maryland and Washington
bankers, that "a large percentage of the
leaning power has gone into unproductive
interests" formulates the dread of Wall
street over the present situation. The re-
action in the iron and steel industries,
the high interest rates, especially on mer-
camille paper, and the curtailment of pro-
duction in other lines caused the fear that
over-eXtension has spread to industrial
and commercial lines, representing addi-
tional "unproductive interests to be fol-
lowed by liquidation and contraction.
The present course of the banks is d-
rected toward conserving the commercial
this end they are memorable to all pro-
motion and financing projects. The mis-
carriage Of these projects is still the
cause of most of the liquidation. While
the great majority of Wall streets prom
inent men show a decided Discrimination
to talk for publication, inquiry among the
very highest interests ELECTS statements
that nothing of a serious or untoward
character is apprehended.
SIMPLY A SELLING FEVER.
Jacob II. Schiff of Kuhn, Loeb & Co.,
commenting upon stock market condi-
tions, said:
1t is simply a fever which must run its
courseA Just we had a buying fever two
years ago and even last year. so the selling
reason counts for nothing.
No matter what may be said as to the causes
which have brought about the present situa-
ton. prevailing conditions throughout the coun-
try do not justify the existing great decline in
substantial securities. The time will come
when people will wonder how conditions such
as we see now could have existed
1t does not appear likely that the much feared
money stringency will materaize. In fact
money is abundant now only those who con-
troll the supply afraid in the uncertain
state of affairs to part with it. The conse-
quence is that we have superabundant supply
of money daily call. while time money can
not be had in large amounts
But this will change, especially as it is al
most certain that with the inability of cor
porations TO finance their requirements general
business throughout the country must. after a
time, fall off and when that moment arrives
shall have a large amount of funds seeking
employment. These surplus funds will to
some extent, determine the value for ordinary
purposes. of a superabundant volume of cur
rency and we shall witness an increased de-
mand for securities. II is not at all unlikely
however that when railroad earnings begin 10
decrease because of reduced general business
the values of railroad securities will begin TO
again increase.