The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1904-09-18
STOCKS UNDERGO
SHARP REACTION
UnfayOrable Bank Statement
and Apprehension of Crop
Damage Influence Prices
WALL STREET IN DOUBT
Grain Speculation Makes
Brokers Chary Of Accept
inc Conditions as Index

NEW YORK, Sept. 17.-Prices of
stocks underwent a sharp reaction to-
day under the combined influence Of an
unfavorable bank statement and ap-
prehension of crop damage. The holi-
day in the London market was also
factor. The news regarding the crops
was not discouraging, warmer weather
being the rule. The grain markets were
reactionary, but the highly speculative
conditions in those markets made Wall
street somewhat suspicious of them as
a reliable index of real conditions. The
selling of stocks was more due to fears
of possible developments regarding the
crops during the Sunday interval not
now foreseen. st. Paul was the leader
of the decline, but the other grangers
and Pacifics were not far behind. The
break in Reading was large influence,
as early attempts were made to ad-
vance the price on the score of the ia
vorable annual report. But the evil
dence of important selling on the adj
vance suggested that the best buying
due to the annual showing had been
done already, and was waiting to take
profits. The support Of United States
Steel preferred also proved futile. The
further S10 472, 600 loan expansion dis
closed by the bank statement disap-
pointed any expectation that the weeks
liquidation in the stock market was re-
ducing that item. It's increase is at
tributed by bankers to interior borrow
ings for crop moving purposes. The in
terror demand is also responsible, of
course, for the further So, 400, 800 shrink
age in the cash item. The net result is
a decline of $90S5,100 in the surplus of
the banks, admonshing circumspection
in the treatment of the money situa-
ton. Total sales of bonds, par value,
81, 1866, 900.
DECIDEDLY MIXED.
The complexion of the stock market
has been decidedly mixed during the
last week. On dealings which rose
more than a million shares a day large
selling to realize has come on the mar
ket, which has been opposed by sturdy
support, causing effective recoveries al
times. No points of aggT essive strength
have been developed. The market
of the earlier portion of the week sue
cumbed generally to the pressure on 1t,
and it was in the latter period that re-
sistance TO the decline developed.
Free realizing was expected in view
of the proportions of the previous ad-
vance and the lack of new incidents
to extend it. But the reaction was ag-
gravated by a number of unfavorable
developments which caused uneasiness
as to the stability of values. The most
important and effective of these was
the deterioration of the crops Last
Saturdays Government crop report of
conditions on September l showed
such a heavy decline in condition of
wheat since the previous report as to
give large influence to the constantly
appearing estimates of a crop much
lower than the Government figures for
the first of the month indicated. The
development of a cold wave and the
occurrence of light frosts in the crop
regions of the West added to the fears
of spectators and the violent specu
lation in progress in the grain market
exaggerated the effect of all develop
ments regarding the crops. AS is
usual in highly speculative markets,
the forecasts of the frost effects largely
exceeded the actual damage, and this
gave room for reactionarv effect, both
in the grain and stock markets. But
the recovery in the grangers proved
moderate, leaving it clear that the out
come of the crops is still potent fac
tor in the securities market. Reports
from Western railroad officials demon
strated that however favorable the I'LL
innate result may be, the present
anxiety is having real influence on
affairs in the crop region by inducing
conservative courses in business and
the Withholding of orders for future
consumption.
ARE DISAPPOINTED.