The Saint Paul globe., 1904-10-28
WAR SCARE AND STOCKS
WALL STREET. Iss SHAKEN FROM
CENTER TO CIRCUMFERENCE
Prices Decline Violently, but ouieter
counseIs PrevafI-Warnina by James J.
Hill Has Much influence

NEW YORK, Oct. 27-War scare rag
ed with great violence in Wall street for
time today and ravaged the speculative
price level to which the market had been
lifted, but before the close of the day
quieter coansels prevailed, and the ques
tion began to be asked whether, in the
event of actual hoStilities between Rus
sia and Great Britain, American invest
ment properties would be hurt in the pro-
portion Indicated by the headlong plunge
of prices during the morning. The action
of the market in comparison with that
OF other securities markets looked as
though the damage from the threatened
clash would converge on American Sc
curities.
The inference was plain that a weak
technical position made this market
acutely susceptible to sudden unfavor-
able development. This condition Of the
market has been pretty plain to careful
observers for some time.
The uneaSineSS regarding the condition
which has grown UP with the evidences
of top heayiness for the last few days
was aggravated by the warning offered by
President Hill of the Great Northern, in
quoted opinion on the course of specu-
lation that operators had better be q
little cautious or they may get bumped. "
The war scare administered the bump and
it proved rather severe. A decline in a
few minutes of to points running gen.
nerally through the active list was suf-
Hclent to throw many speculative holdings
and to neceSSitate great ability ON the
part Of holders of very much larger
amounts to prevent sacrifice and an in
crease Indefinitely of the pressure upon
the market. As it was, the uncovering of
Stop-losS orders preclpltated large spec
ulative holdings on the market and broke
through all the artificial restraints sought
to be opposed to the fall The jump IN
foreign exchange and the sharp running
up of wheat were sufficient evidences Of
the reality Of the danger IN the crisis.
But the exaggerated effect on the stock
market was a demonstration of the arti-
fetal conditions which had been built up
/ there.
Bond Prices Stable
The same thing was apparent in the
heayineSS of the declines in stocks which
have been most subjected to the BOOM
ing process although the intrinsic value
of the properties thus represented would
be no more impaired by an Angio-Rus-
sian war than would any others on the
list of securities. The stability of bond
prices was an additional illustration, the
losses in that department being almost
wholly confined to convertible bonds, or
such as had moved In sympathy with the
undue advances IN their allied stocks:
The most direct effect of the foreign sit
uation upon our affairs was in the add1-
tional engagements of gold for export to
Paris. The immediate crisis in interna-
tional affairs cannot be held responsive
for this, which is in9 preparation for a
further Russian loan in the regular pros
ecutioIT of the war with Japan. But the
influence upon the local money situation
is OF ln1meOldL6 Importance, Will idC iIlLOi :
ior demand still in force. The threatened
impairment of bank reserves is an admoni-
ton against excessive speculation at an
unstable level of prices with borrowed
money Reassuring adviceS concerning
the prospect for an Anglo Russian settle
ment were of no influence for a time, but
the market made a substantial recovery
in the quieter mood of the later tradIng In
and the losses were largely repaired. The
bull control was again asserted and the
market showed the relief afforded by the
shaking out of stlnWieldy speculative ac-
rallied partly and Ontario & Western suf-
fered from an alleged pitch in the. New
Haven control movement. The closing
tone was generally firm and active
Total sales, par value, $7,395,0G0. United
States bonds were unchanged on call.
$50 Closing List