The Birmingham age-herald., 1903-08-09
A,K MARKET : v TAXES \ PLUNGE
Avalanche of Selling Orders
 Added to Generalization
SEVERAL EXTREME BREAKS
It Is 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 SS,ss2 GOO in the loan account of the banks, after week of Asuch painful liquidation as to verge upon panic at times, upset the newly found aquanimity of the market and an aval- dnche 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 it 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 coneensus 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 loosening of the purse strings of the banks for the purpose of checking the demoralization then threat ening. 1t 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
 
 day, so that todays demonstration was hot due to actual further calling of loans but to apprehension of next weeks pro- ceedings
 Chief pressure today centered upon the Pacifics. Union Pacific plunged downward 5% points to 65A Missouri Paciic's ex- treme loss was A. Brooklyn Transit and Metropolitan Street Railway lost as much; Atchison, 35s; St Paul, S1a, and Northwestern preferred, '. The last named stock closed 175 bid and 195 asked. Consolidated Gas was eff 7A Great Northern preferred 5, and Deiaware and Hudson f. 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 arousing 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 1t was not clear. There was evidence that some of the very 4r-- ToFs 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 liauidation 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 it's power of absorption.
 The question of the end of the liquida- dalton remains an open one. The move ment of prices ..as had little to do with the news of the week. The sustained level of bank loans in face of the enorm- ous liquidation already achieved, Is matter of troubled conjecture and att tempts to explain it have ranged over wide field without relieving the depressing influence of the fact. The question of whether the long shrinlxage 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- 1ects in the industrial field and especial lv 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 over the possibility of a coming business and industrial reaction. The crit ical season for the crops is also an un- settli~c fa otor. --'-i-- ---''1 not be entirely relieved until the crops are definitely made.
 The fact that only two stock exchange failures were added to the list this week as a result of the slump, was accepted as further evidence of an extraordinary strength in the position which met the long decline.
 Bonds were weak and unsettled and partly recovered r sympathy with stocks.
 United States 2s have declined 1s. the 3s registered and old As A per cent on call.