The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1903-07-16

NEW YORK July 15-The violent
liquidation of stocks and bonds continued
on the stock exchange today, establish
ing general low record of values for the
year. The money eXigencies of the New
York Central. which was the particular
development upon which the present sell
ing movement started, has widened so as
to take in the railroad world quite gen
orally. Yesterdays late announcement
that the Chicago. Burlington & Quincy
had borrowed $5,000,000 for a period ex-
tending over into next March on per
cent basis was supplemented today by
the official announcement that the Union
Pacific company had negotiated it's notes
to the extent of so, 100000 for year and
half also practically on per cent
basis.
The authoritative news of the day re-
garding the money requirements of the
great railroad corporations was supple
of eredibility pointing to urgent money
needs on the part of the railroad world
in general and individual capitalists in
particular and alleging that great sacri-
cure funds in hand. TIE effect of this
condition was to provide field day for
the bears in the stock market.
One Rally Comes.
This element of the stock brokers was
diligent in pursuing their advantage all
day long and the extent of their opera
tions on the short side left an effective
requirement for stocks towards the end of
the day. Buying of the bears to cover
caused a strong rally in the market which
wiped out the earlier losses in some cases,
notably in st. Paul. New York Central,
Reading and Norfolk & Western The
days losses in the active list were not
greater at any time than are frequently
shown during an active selling move
l to points. But in the inactive list
and especially among stocks regarded as
of high investment grade there were
some drastic cuts in market values. In
thnOn rn wit 1nno
standing quotations made on all sales and
result from the marketing Of compare
lively small blocks of stock. A,e
The Inference is plain that these repre-
sent sort of revision of book values.
While the assumption is warranted that
such sales are made to supply urgent
money. requirements there is possibility
also of the attraction of the present rates
in the open market inducing the selling
of securities to employ funds in that way,
rms IS the natural process by which
prices OF securities adjust themselves to
the level of the money market. That
money is at present in active demand lat
high rates and is. likely to continue, $50
for considerable period is just infer
ence from all the existing phenomena in
the money market and the stock market
More Demands for Money.
News from various points of projects
of combination of gas, electric light and
trolley companies show sources for. arfdi-
tional demands for money. Some of the
declines in high grade investment stocks
lodty ran all the way from 4 TO ~ points
and included such stocks as General
Electric, Westingheouse Electric. the New
York. Chicago q St. Louis, Lacka wanna,
Delaware & Hudson, Pittsburg, c.. c, &
st. Louis, United States. Express, st. Paul
preferred Brooklyn Union Gas, Buffalo.
Rochester & Pittsburg. Long Island, etc.
In the active list, Pennsylvania, New York
Central and Pacifics and the United
States Steel stocks were most heavily
sold. There was enormous short cover
ing at different times during the day, the
breaking out of depression at new points
being used to cover to advantage where
declines had already occurred The
routine news of the day outside of the
money situation was entinrely ignored.
The closing was rather irregular owing, to
some fresh recessions just at the last.
The bond market reflected the pressure
of liquidation rather more generally than
heretofore and there were declines of i
to IL in many favorite bonds of what
might be called a secondary grade. Losses
amongst the speculative issues reached as
high as 3 or 3A in some cases. Total
sales, par value SO, $780, 900. United States
bonds were all unchanged on the last CALL
Closing List. -