The Birmingham age-herald., 1903-07-16
LIQUIDATION OF
 STOCKS CONTINUES
General Low Record of Values
 is established
MONEY IN ACTIVE DEMAND
Bond Market Reflects Pressure of IL quidatlon and Many .Fayorltes Decline to 1H In second
 crades-speculatlve Losses.


 New York July 15.-The violent iqui- dation of stocks and bonds continued on the stock exchange today, establishing general low record of values for the year. The money exigencies of the New York Central, which was the particular devel- opment upon which the present selling movement started, has widened so as to take in the railroad world quite general sy. Yesterdays late announcement that the Chicago, Burlington and Quincy had borrowed $5.oO00OO for a period extending over into next March on a per cent basis, was supplemented today by the official announcement that the Union Pa cific company had negotiated it's notes to the extent of s1o0O0,o0O for year and a half, also practically on a per cent basis. The authoritative news for the of the great railroad corporations was supplemented by countless rumors of all degrees of credibility pointing to urgent money needs on the part of the railroad world in general and individual capital ists in particular, and alleging that the great sacrifices were necessary to be made to secure funds in hand. The effect of this condition was to provide field day for the bears in the stock market diligent in pursuing their advantage all day long and the extent of their opera tioDs on the short side left an effective requirement for stocks towards the end of the day.
 The buying of the bears to cover caused strong rally in the market which wiped out the earlier losses in some.cases, nota- bly in St. Paul, New York Central, Read ing and Norfolk and Western. The days losses in the active list were not greater at any time than are frequently shown during an active selling movement, the range running generally within 1 to 8 points. But in the inactive list and es- pecially among stocks regarded as of a high investment grade, there were some drastic cuts in the market values. In many eases these compare with long standing quotations made on all sales re- suited in the marketing of comparative ly small blocks of stock. The inference is plain that these represent a sort of re- vision of book values
 While the assumption is warranted that such sales are made to supply urgent money requirements. there is a possbilitq also of the attraction of the present rates in the open money market inducing the selling of securities to employ funds in that way. This Is the natural process by which prices of securities adjust them selves to the level of the money market.
 That money Is at present in active de- mand at high rates, and is likely to con- tinue so for considerable period, is a just. inference. from all the existing phe- nomena in the money market and stock kaf 1o, cates projects of combinations of gas. electric light and trolley companies. and show sources for additional demand for money Some of the declines in high grade investment stocks today ran all the way from to 20 points, and includ- ed such stocks as General Electric, Westinghouse Electric. the New York. Chicago and St. Louis stocks, Nashville, Chattanooga and St. Louis Lackawanna, Delaware and Hudson. Pittsburg. Cincin- natl, Chicago and St Louis United States express, St. Paul preferred, Brooklyn Union Gas, Buffalo, Rochester and Pitts burg Long Island. etc In the active list Pennsylvania New York Central and the Pacifics in the United States Steel stocks were most heavily sold
 There was enormous short covering at different times during the day, the break ing out of depression at points being used to cover to advantage where declines had already occurred. The routine news of the day outside of the money situation was entirely ignored. The closing was rather irregular, owing to some fresh recessions Just at the last.
 1he bond market reflected the pressure of liquidation rather more generally than heretofore and there were declines of to 1k in many favorite bonds of what might be called a secondary grade. Losses amongst the speculative issues reached as high as or 3A in some cases. Total sales par value, $3. 7S0,00O.
 United States bonds were all unchanged on the last call.