The Montgomery advertiser., 1903-07-16
WALL STREET REVIEW
VIOLENT LIQUIDATION OF
 STOCKS CONTINUES.
General Low Record of Values Is Established--Railroad's Need of Money Has Effect on the
 Market.

NEW YORK, July l5.-The violent liuuida- tlon or stocks and bonds continued on the Stock Excnange today, establishing "a general low recoIo or values for the year. The money exi- gencies of the New York Central. which was the particular development upon which the present selling movement started has widened so as to take in the railroad world quite. gen. eraiiy. Yesterdays late announcement that the Chicago. Burlington and Quincy had bor- rowed S5, ooo 900 for a period extending over into March on a per cent. basis was supple mented today by the official announcement that the Union Pacific had negotiated it's notes to the extent of Sio,ooo, 900 for year and a half also practically on a per cent basis
 The authoritative news of the day regarding the money requirements of the great railroad corporations was supplemented by countless rumors of Il degrees of credibility pointing to urgent money needs on the part of the rail- road world in general and individual capital 'sts in particular and alleging that the great sacrifices were necessary to be made 10 secure funds in hand. The effect of this condition was to provide field day for the bears fin the stock market. This element of the stock brc k- CTS was diigent in pursuing their advantage all day long and the extent of their ope- itions on the short side left an effective ralure- ment for stocks towards the end of the cay. The buying of the bears to cover caused a strong rally In the market which wiped cut the earlier losses in some cases. notably fn St Paul. New York Central Reading and Nor folk and Western. The days losses in the &C., tive list were not greater at any time than are frequently shown during an active selling movement. the range running generally within to points But In the inactive list and es- pecially among stocks regarded as Of a high in vestment grade there were some drastic cuts in market values. In many cases these com pare with long standing quotations made on all sales and resulting in the marketing of comparatively small blocks of stock The in- ference Is plain that these represent a sort of revision of book values. While the assump- tion Is warranted that such sales made to supply urgent money requirements there IS possibility also of the attraction of the ores ent rates in the open money market, inducing the selling of securities to employ funds that way This Is the natural process by which prices of securities adjust themselves 10 the level of the money market. That money Is at present in active demand at high rates and Is. likely to continue so for ooi iderabIe pe- riod of just inference from all the existing phenomena in the money market and Sock l market news from points of projects. combi- | nations of gas. electric light and trolley com panies show sources for addtionaIS demands | for money. Some of the declines ins high grade | investment stocks today ran all the way froIn to 20 points and Included such stocks as General Electric. Westinghouse Electric. the New York. Chicago and St. Louis preferred stocks. Nashville, Chattanooga and St. Louis. Lackawanna. Delaware and Hudson, Pitts burg c. c. and St. Louis. United States Ex- press. St. Paul preferred. Brooklyn Union Gas. Buffalo, Rochester and Pittsburg. Long Island. etc. In the active list Pennsylvania, New York Central and the Pacifcs and the United States Steel stocks heavily sold There was some short covering at different times during the day, the breaking out or depression at points being used to cover to advance where declines had already occurred The routine news of the day outside of the money situa- ton was entirely ignored The closing was rather irregular owing to some fresh recess sions just at the last
 The bond market reflected the pressure of H. quidation rather more generally than heretofore and ther. declins of from to lh in many favorit bonds of what might be called a secondary grade. Losses amongst the specu- lative issues reached as high as 3 or 3h in some instances. Total sales tpar value). s. 76o, GOO. United States bonds were all un- changed on the last call.