The Saint Paul globe., 1903-08-06
WALL STREETHAS SCARE
EXCITED OPERATORS ARE GLAD
WHEN THE CLOSE ARRIVES
Prices Fall Away Rapidly and Two Fall
ures Are Announced, Neither Causing
Surprise, However-coilaterai Is Basis
of uneasiness.

NEW YORK Aug. 5.-The hour for
closing of todays stock market was hailed
with relief by the highly strung members
of the exchange. The day was one OF ex-
citement ana alarm and the falling away
of the prices of securities was so rapid
and comprehensive as to arouse great
fears as to the consequences. The an
nOuncementS of two failures were the only
actual disasters to develop, and neither Of
these was surprise. Some of the day s
liquidation Was, supposed to be OF col
though it was officially announced in one
case that the creditors had decided to
withhold the collateral from the market
in it's present condition.
1t was evident that very general clos
ing out of collateral in loans was in prog
reSs and much of it was allowed to go
for what it would bring. AS the demand
for stocks is still exceedingly light. the
market and the pressure grew more acute
from the reactIonary effect of the selling
in forcing a Shrinkage OF the collateral
in other loans. So far as the news of the
day was concerned there was slender
basis for the sacrifice of the securities
beyond the uneasy sense that collateral
could not be readily realized on and the
consequent desire to convert 1T into ready
money.
Support From Bankers.
This is the essence of demoraliza ton
in any market and it had it's natural re-
suit today. Expectation was at the hien
pitch at the opening and Decentralization
was prevented only by the most vigorous
banking interests and managers for va
riouS prominent stocks. The support was
especially notable in the United States
Steel stocks and succeeded in raising the
price of the common a point and the
preferred 13s over last nights level. The
support of these stocks was helped by the
fact that some Of the developments which
We're expected from yesterdays meeting
j, Il ~ l1n
weakness of the stocks was a potent fac
tor in the weakness Of yesterday markets
the strong support accorded them this
morning had a soothing effect on senti-
recovery from the opening declines
Then came the announcement of the
first failure. that of an important house
with commitments in variety of stocks.
From that time until the close the liquid
alton was intermittently pursued with
occasional rallies on short coverings.
There was an eager rush to cover among
the bears in the final dealings, but even
then this was renewed breaks at other
points and the closing was nervous and
excited with very irregular fluctuations.
The United States steel stocks suffered
comparatively small losses, but both the
common and the preferred and the sink-
ing fund per cent bonds touched low
record prices during the day. Liquida-
ton in Missouri Pacific was very violent,
and. it suffered an extreme loss of SIS.
Much of 1.-The liquidation IN this was at
tributed to the account of one of the sus-
pended, firms 1T carried down Wabash
preferred five points with it. This was
also very heavily sold as the day pre-
greSSed.
Declines Ascribed to Failures.
The Pacifics and grangers were under
a steady pressure most of the day. The
violent decline Of the Colorado Southern
stocks, the Southern railway stocks and
Virginia Carolina Chemical were associ-
ated with the failures. Some of the high
priced comparatively inactive stocks were
severe sufferers, American Snuff break
ing 15, and New York Air Brake. Pull
man, Consolidated Gas, General Electric
and Chicago &c Eastern Illinois certifi-
Gates from to 10 points. Call loans
were slightly firmeT, but there was moth
ing in the time money market to explain
break in sterling exchange caused an ap-
proach in the rate towards the gold i'm
port point. Profit taking in the grain
markets was a satisfactory development.
which was Offset however by the COM
tinued speculative manipulation in cot
ton. A cut in price of steam coal by the
Reading and talk of Rock Island strike,
which was denied. were made some
thing of by the bears. Satisfactory re-
ports of railroad earnings, including a
13 per cent increase in gross earnings for
July over last by the New York Central,
We're without any influence upon senti-
ment.
Bonds were weak in sympathy with
stocks. Total sales, par value, Sd, SAC, 900.
United States bonds were all unchanged
on the last call.
Closing List.