The San Francisco call., 1905-04-30
Condition ofDistrust inStock
Market Breaks Bounds and
a Comprehensive Slump in
Prices Is the Result
BEAR OPERATORS
AGGRAVATE DECLINE
Members of. the Speculative
Pools. and PIllngers Show
a Lack of Confidence and
Yield to Heavy Pressure


NEW York. April 2s.-The condf-
zion of distrust ia the stock market,
which has been growing for. some
time, broke into a furious storm of
Liquidation to-day and swept away all
support. Selling under pressure Of ne
cessity found practically no demand to.
meet it and the comprehensive slump
in prices was the result. The weak
ness was multiplied by the decline in
prices, and many additional offerings
were forced on the market by Iend-
ers of money, solicitious for the value
Of their collateral by spectators de-
sirious Of limiting their losses and by
holders on margin who were forced
out by their brokers rs the margins
were wiped out. The conditions which
resulted We're those of panic. The pro-
fessional bear operators, OF course,
added their efforts to aggravate the
decline, the urgency of the selling and
the lack of confidence argued by the
small demand to buy at any stage of
the decline naturally gave rise 20
many runors Of financial difficulties.
The pressure under which the mem
bers Of speculative pools and various
stock market plungers were laboring
was sufficiently obvious, but to this
We're added fears of financial weakness
in more important quarters. Nothing
developed affecting intrinsic conditions
to account for the enormous liquide-
ton.
The bank statement made strong
showing, the considerable loan reduc-
ticn. together with an effective in
crease in cash, expanding the volume
Of the surplus by from more than one
third of a million dollars to nearly
$1,000. 600. The break III the market
could not be traced to money market.
conditions, although next weeks heavy
requirements received some considera-
ton. The torfe at the closing gave no
clear evidence that the storm had
passed, prices in some cases closing
at the lowest, with the furious activity
Nnabated.
The extreme losses extended very
generally from l to 4 points, and for
Buffalo, Rochester and Piasburg there
was a decline OF 11A. Northwestern
preferred 9s4 c.. c.. c. and St Louis
8, Atlantic Coast Line 7ls, Bnited
States Rubber preferred ~, New York
Central Z and for an extensive list of
active. stocks from 4 to 51z, the latter
figure for ST. Paul. Total sales of
bonds, par value, $1,940,0O0.
The stock market this week has
been given over to paying the penalty
of the unbridled speculation which has
been rampant. The process of let
ting out speculative influence in the
stock market and in the wheat market
has intensified the penalties. The
parallel speculation in the stock mar
ket and in wheat was believed to be
largely in the same hands, so that
each market was highly sensitive to
the course of events in the other.
Many observers hold the view that the
collapse OF the wheat corner was al
most entirely responsible for the over
throw Of the speculative fabric of the
stock market
1t is set down that a. great specula0
ton has been carried to elimination
In face of such a body of opposing
conservative sentiment of frequently
uttered warning and of authoritative
disclaimers of the ruuors on which
the advance in prices was based. Rrac-
tically all of these various suBpositiens
were suddenly abandoned this week
and as a consequence stocks we're sold
by those who had bought in the faithB
that the suppositions were true
cloud of these rumors had eSntered
about the Northern Securities Com
pany and the beginning of the actual
dissolution Of that company and the
distribution of its assets has been the
principal factor. in discreditinge them.
The resignation Of George GOULD
from the Union Pacific board to give
attention to THE western Pacific was
looked upon as a measure of compe-
tition, and the question raised over the
old Carnegie Company contract for
United States Steel tonnage to the
Gould roads was regarded as another
threat of reprisals for grievances else
where.
Much influence must be allowed for
the sentimentale effect of the revela-
tons OF the great bank defalca ton at
Milwaukee, due to speculation in
wheat. Aside from the actual loss in
volved, a spread of suspicion ais the ir-'
evitable result, with unfavora BILE. ef-
feet on the state Of general confidence,
which is so important an element in
the prosperity of business.