The Montgomery advertiser., 1903-09-29
GLOOMY DAY
 FOR BULLS Selling is Continued on
 Wall Street. THE LIQUIDATION HEAVY Experts Unable to Account for
 the Situation. MT. schif Says It is a Fever That Will Have to Run Its Course. Reproductive Enterprises
 Suffer.
THE LIQUIDATION HEAVY

New York, Sept. 28.-Wall Street spent
 another gloomy day which was devoted
 mostly to trying to puzzle out where the
 une, ding stream of liquidation came from
 and what caused it. Information on the
 subject or even authoritative options
 were extremely hard to get. It is point
 ed out that the great bankers and capi- talists were not heard of in warning last
 year during the high range of prices while
 they were seeking a profitable market for
 their holdings at that level. From this
 it is Inferred that the buyers of a class
 which decides market movements would
 not be heard of melting others to buy if they were themselves seeking securities
 on cheap terms in the present market. There Is, in fact. rather a notable lack of public quotation of authorities point ing to the cheapness of stocks which has
 been 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
 sale of securities are not likely to miss
 any means of concealiSE their transac- | tions. The source of selling orders in the present market is a baffiing mystery and inferences usually drawn from the per- sonality of the brokers employed are ale
 most invariably at fault.
 Apprehension Felt.
 The conditions which prompt the liqui-
 dation and the probable limits of its ex-
 tent are consequently the subject of grave
 disquiet and apprehension. It was the failure of stock jobbing operations that brought the early selling and the losses represented were almost wholly on paper,
 as the previous gains had been. But la-
 ter episodes represent the failure of en- terprises in which extensive capital had
 been embarked at demonstrably unpro-
 ductive employment. Capital thus sunk is capital lost.
 Comptroller Sidgely's opinion expressed before the Maryland and Washington bankers that "a large per centage Of the loaning power has gone into unproductive interests'' formulated the dread of Wall Street over the present situation.
 The reaction in the iron and steel fn- dustries. the high interest rates. especial ly on mercantile paper and the curtail-
 ment of production in other lines caus- ed the fear that over extension has
 spread to industrial and commercial lines representing additional "unproductive interests to be followed by liquidation and contraction.
 The present course of the banks ts d1- rected toward converting the commercial and industrial needs for credits and to this end they are memorable to all pro-
 motions and financing projects. The mis-
 carriage of these projects Is still the cause of most of the liquidation. While
 the majority of Wall streets prominent
 men show a decided disinclination to
 talk for publication, inquiry among the
 very highest financial interests elicits statements that nothing of a serious or untoward character Is apprehended. MT. Schiff Talks.
 Jacob H. Schiff, of Kuhn, Loeb & Co.,, commenting upon the stock market and financial conditions. said: Tt Is simply
 a fever which must run it's course just
 as we had a buying fever two years
 ago. and even last year. So the selling
 fever has now taken hold of the people and reason counts for nothing.
 NO matter what may be said as to the causes which have brought about the present situation, prevailing condi- tions throughout the country do not jus tify the existing great decline in sub- stantial securities. The time will come when people will wonder how conditions such as we see now could have existed. Ut does not appear likely that much | feared money stringency will materialize. | Tn fact money is abundant now only | those who control the supply are afraid in the uncertain state or affairs to part
 with it. The consequence is that we have a perabundant supply of money on daily call while time money cannot
 be had in large amounts.
 But this 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 a time fall on and when that moment arrives we shall have large amount of funds seeking en- ployment. These surplus funds will to some extent determine the value of our, for ordinary purposes, superabundant volume of currency and we shall again
 witness an increased demand for secur- ities. So that 1t Is ar all unlikely,
 though this may seem parodoxical. that when railroad earnings begin to decrease
 because of reduced general business. the
 values of railroad securities will again
 begin to increase"