The sun. [volume] (New York [N.Y.]) 1833-1916, 1904-09-21
FINANCIAL AND COMMERCIAL.
TUESDAY. Sept. 20

The heaviness and cautious liquidation
which have characterized the stock market
during the last few days grew to-day into
positive market weakness. The under
| lying cause OF this was, OF course, the ope-
ration Of those general forces which, after
any market has advanced for long time,
unite to make a further advance more
difficult and to bring about decided re-
action in price quotations, these forces
consisting mostly OF the desire OF specu-
lators to turn into cash the profit that the
rise in value has awarded to them. That
profit taking movement of this character
has been in progress In our stock market
for ten days past has been plain enough to
every clear headed observer, and whether,
indeed, 1t is yet concluded Is matter that
Ia greatly open to discussion. Three
specific developments to-day were, how
ever, popularity accounted as chiefly infu-
entail in bringing about the days declines,
which went to greater length than has yet
been witnessed on the downward move
ment, and at one time seemed to be verging
upon general market decentralization. The
frst OF these was the announcement by 80
high an authority as Mr.. James j. Hill that
the results Of his own investigations led him
to practically the same low estimate OF the
corn harvest as that put out yesterday by
private crop expert; the second, the spread
OF a GOLD wave over tho Northwest and the
northern part OF the corn raising section,
and the third, such heavy pressure to sell
the United States Steel stooks-which have
recently been the market leaders that
the price Of these issues was sharply de-
pressed. Wall Street and the grain trade
were still unwilling to believe to-day that
past optimistic beliefs as to the size OF the
years corn crop were mistaken, or, at
least, that such a small estimate as that OF a
1000 900 bushel crop could be correct.
The impression began to prevail, however,
helped by the low temperatures that again
and for the second time this season covered
large portion of the corn belt, that though
a 900 900 900 or 2.O0O 900 900 estimate for
corn was too low, $500. 600 600 estimate
was probably too high, and that the size
Of the corn crop this year was a matter
that was in serious dispute. 1t is known
that there are other eminent railway presi-
dents besides Mr.. Hill who express in private
the opinion that the Governments large
corn estimate is exaggerated, basing their
Judgment on the general results Of the I'm
favorable climatic conditions that attended
season and which has had the effect, they
fear, Of stunting the crop snd injuring It's
quality All this means, as interpreted
by Wall Street, that there must be further
time Of uncertainty until the facts about
the corn crop can be definitely ascertained.
The selling OF the United States Steel shares
to-day was as unexplained as the recent
buying Of them. but the effect upon the
general market In the wide fluctuations of
the shares was as great at one time as the
other. 1t became known after the close
OF the stock market yesterday that cut
in the price of steel billets had been made,
but it was perfectly understood that this
action was to be taken and the cut made
was not, indeed, as large at it had been
generally thought it would be. Inasmuch
as there is still lack Of definite information
regarding any notable improvement in the
steel trade, the rank and file Of the Wall
Street community to-day jumped to the
conclusion that good share, at least. of
the recent movement In the Steel shares
had been for speculative reason alone.
Whether or not the influences at work in
to-day's market have been here correctly
diagnosed, the fact remains that there
heavy selling Of nearly all the active
stocks, doubtless for both accounts, and
that large net declines In the prices OF the
more prominent issues were recorded
finally. The most curious feature of the
days market was the course Of Union Pacific
common stock. 1t was steadily bought
from the opening OF business, firmly resist
ing the general downward tendency OF the
market, and, rallying at one time quickly just
as the market was breaking, caused strength
in the entire list Of securi-
ties. The selling movement was again
resumed and lower prices than before
were. as a rule, made. But again, under
the leadership OF Union Pacific common,
the market rallied and at the close had
regained a good part Of it's previous loss.
Bearish operators asserted, as they natur-
ally would, that the stock in question was
made strong in order to facilitate liquida-
ton elsewhere. Other observers pointed
out that Union Pacific common has been
a stock against which bear operations have
been lately much directed and asserted
that to-days rise in it was at the expense
of q short interest that mad become I'M
wieldy.
There is little doubt that by reason OF
to days events the bank loan account
to-day, too, the banks had lost to the |
Sub-Treasury but $4,000, as against a |
loss OF nearly A.O00,0oo in the similar
period a week ago. The indications Of |
the moment are, therefore, for more favor
able bank statement at the end of the week |
than has been seen for some time. 1t il
also TO be noted that foreign exchange |
has become very weak. There is consider |
able diversity OF opinion as to whether,
owing to various complications, We shall |
be able to get any gold from the English
market this fall in payment for our cotton.
Gold imports will, Of course, be welcome,
even in a or o per cent. money market.
and the recent weakness Of exchange is.
however adjudged. significant.