The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1903-09-29
SELLERS MANY;
BUYERS ARE FEW
Unsnding Stream Of liquidation
in Wall Street.
BANKERS HOLD ON TO MONEY
MANY BIG SCHEMES GOING TO
THE WALL.

NEW YORK, Sept. 2S-waI street
~ spent ane1her gloomy day, which
was devoted mostly 10 trying 10
puzzle out where the uuending stream
Of liquidation came from and what
caused il. Informatic& az the sub
ject. or even authoritative opinions,
were extremely hard 70 get. It is
roiuged cut chat the great bankers and
capitalists were not heard OF in warn
ing -st year during the high range or
prices. while they were seeking
profitable market FOR their holdings at
this level. From this it is inferred
that the buyers Of a class which de-
cides 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 facts rather a notable
lack OF public quotations OF authority
pointing 10 the chCaDuess OF stocks,
which has been heard from time 10
time during the course of the long de-
cline and at price levels cOnsiders blv
above the present BUT 10 Is equally
true that men seeking a market TO
realize ready money at forced sale or
securities are not likely to miss any
means Of concealinE their transac-
tons. The source Of selling orders in
tn. present market is a batting mys-
terry. and differences usually drawn
from the personality OF the brokers
employed are almost invariably at
fault.
Grave Apprehension.
The conditions which prompt the
liquidation and the probable limits %
its extent are consequently the subject
. of grave disQuIcJ ana apprehension. II
was the failure of stock tCbbiug OpSTa-
tons that 1rou~at Ting e9-ly Selling.
and the losses reported were almost
wholly IN paper, as the previous gains
had been. But later episodes repre-
sent the failure % enterprises in
which extensive capital has been en-
barked. at demOnstra bly, unproductive
employment Capital thus sunk is
capital lost.
Comptroller Ridgley's expression be-
fore the Maryland and Washington
bankers. that "a large percentage Of
the lOaning power has gone into un-
productive interests" fOrmulatcs the
dread OF Wall street over the present
situation. The reaction in the iron
ard steel industries, the high interest
rates, especially on mercantile paper,
and the curtailment Of production ia
other lines caused the fear that over
/ extension has spread TO industrial and
/ commercial lines, representing add
+ tionai "unprOductive interests 20 be
/ followed by liquidation and contrac-
/ ton.
( The present course of the banks Is
directed toward conserving the COM
mercial and Industrial needs of credits.
and to this end they are memorable 10
all promotions and financing projects.
/ The miscarriage of these projects is
A.
I ton. While the great majority Of Wall
/ streets prominent men show a de-
! c:ded disinclination to talk for publ
cation, inquiry among the very high
I est interests elicIJs statements that
nothing of serious or untoward char
/ acter is apprehended-
Must Run It's Course.
Jacob H. Schiff of Kuhn Loeb s.
/ Co.. commenting upon stock market
/ conditions said: 1t is simply a fever
which must run its 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 20
[ the causes which have brought about
/ the present situation, prevailing cor
ditions throughout the country 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
/ nave existed
/ 1T does not appear likely that the
/ much-feared money stringency wiz
/ materialize. In fact, money is album
/ dant now. Only those who control the
/ supply are afraid, in the uncertain
/ state Of affairs, to part with it. The
/ consequence is that we have a super
abundant supply Of money on daily
call, while time money cannot be had
+ IL large amounts.
But this viii change, especially as
I it is almost certain that with the in
ability of corporations TO finance
/ their requirements. general business
! throughout the country must. after a
/ time, fall off. and when that moment
arrives we shall have a large amount
. of funds seeking employment These
: surplus funds viii TO some extent de-
/ termine the value of our for ordinary
/ purposes. superintendent volume OF
+ currency and we shall again witness
} an increased demand for securities. So
} that it is not az an unlikely though
. this may seem paradOXicaI that when
railroad earnings begin to decrease
I because of reduced general business,
: the values of railroad securities VIII
begin TO again increase"