Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-04-29
Heavy Liquidation Marked the
Weekend Dealings.
VERY LOW LEVEL REACHED
Loan Increase an Impressive Exhibit
of Pressure.
THE SPECULATIVE SENTIMENT
Heavy Cash Shipments to San Fran
cisco-The Inroad Upon q. 8.
Bank Reserves.
VERY LOW LEVEL REACHED
THE SPECULATIVE SENTIMENT


NEW YORK, April 2s.-Heavy liquida-
ton continued In the stock market today.
without any new development In the situa-
ton The violent decline In prices of the
last two days brought additions to the
food on tie market by the wiping out of
margins. uncovering of stop-loss orders.
shrinkage of collateral and all the other
natural consequences of a sudden contrac-
tlon in the market valuation of securities.
The bears were in their element, and. OF
course, were not idle.
A remarkable feature of the market was
its calmness in the early part of the ses-
sion. when selling was comparatively light
and supporting measures seemed to be
easily effective, Such a drop in prices as
that of yesterday usually has the result
of preclpitating additional burdens on the
market Immediately following. owing to
impaired margins which have not been
good over night and the natural unsettling
effect uTon sentiment of day of demorali-
cation such yesterday.
Sales Of this character seemed to be with
held from the market when trading first
began. The fact that loans made on Friday
at the stock exchange carry over until
Monday may have exempted speculative
holders from some immediate pressure to
close out. But before the session was over
stocks poured out from every direction and
were thrown over on a swiftly declining
range of prices. sales either being forced
or the sellers determined to get out at the
prevailing prices in the fear that worse was
10 follow.
The level touched was materially lower
than the low point of yesterday. Such ex-
ceptions TO the weakness as Chicago. and
Northwestern, Consolidat ted Gas and Hook
ing Valley had no effect in mitigating the
gloom which prevailed In all speculative
quarters. The bank statement made
showing wide OF all calculations. and so
many complexities entered into the weeks
money market that no one attempted TO
explain The discrepancies The apparent
decrease in cash reserves of less than
million dollars contrasted with preliminary
estimates based on the movements of cur
rency so far as known that calculated a
loss running all the way from 81, 600 900 to
Sl50O0O00.
The Heavy Loan Increase.
The loan increase of s21.7S1. 500 in face
OF the severe liquidation in the weeks stock
market was an impressive exhibit of the
pressure for credits which is forcing out
securities on the market and seemed to
aggravate the pressure to sell after the APP
pearance of the bank statement. The coal
strike prospect was an aggravating factor.
in spite of some demand to cover shorts by
beafs many active stocks closed near the
lowest, and net losses running from two to
seven points were general through the list.
The closing tone was active and weak.
Total sales of bonds, par value 81. 1916 OOO.
The process of absorption of the shock of
the San Francisco disaster has been going
forward all the week in the financial mar
kets OF the whole world. Much has been
accomplished, and the sum total of the nee
essary measures of adjustment to the alter
ed conditions by that much reduced. But
opinion remains underlined or vaguely de-
termined as to how much remains TO be
accomplished In the completion OF tho task
Speculative sentiment over the outlook In
the money and securities markets in con-
sequence Is much unsettled, and operators
IN stocks are disinclined to take position
in the market. When they do they are
easily dislodged and disposed to retire and
await clearer outlook.
New York financial Institutions have
borne large part Of the burden of the adj
1ustment to the San Francisco losses owing
10 the extent to which financial operations
of the country center here as the clearing
house center of the country's banking sys-
TEN.
Enormous Cash Withdrawals.
Direct Withdrawals of cash from New
York for shipment to the Pacific coast have
been on an enormous scale. Large ship
ments from some OF the interior points to
eave time. notably Chicago. have been for
New York account and result in drafts on
this city to meet the shipments. New
York, in response to the pressure has
withdrawn gold from London. and late In
the week from Paris. Through these chan
nels the force OF the shock has been dis
semtnated and has passed on to foreign
money markets.
As a result OF the pressure prices or
stocks have been forced to the lowest of the
year, representing heavy declines from the
high level, such as BOA points in ST. Paul
and 49,. points in Union Pacific s'ome or
the liquidation has been traceabie directly
10 the fire insurance companies. which are
forced TO realize on their treasury assets
TO prepare for meeting the fire losses. High
grade dividend paying stocks OF an invest
ment character and bonds OF class 10
which corporation investment Is largely
confined naturally have suffered most from
this kind of liquidation. But the more
speculative Issues have not been exempt.
The volume of speculative liquidation
proved disagreeable surprise 10 the specu-
1atiye element, which has protested that
Wall street commission houses were prac-
tically bare of stocks and the speculative
account in the market on the long side at
a low ebb. The course OF events has re-
suited in forcing out many strong accounts
which were unsuspected owing TO the
Quietude with which previous events in
Guiding the stringency of the money mar
ket. have been accepted. The downward
course of prices has resulted I'm discourage
ing some and in forcing out others by the
exhaustion OF margins and the increasing
eral which is caused by decline In prices.
Inroad Upon Bank Reserves.
The inroad upon bank reserves has had
its Inevitable effect on the money market
The needs OF the great insurance compa-
MES offer the alternative of liquidation OF
securities or OF borrowing on the collat-
eraI OF their securities holdings to defer
the necessity OF liquidation. Either ex-
pedent Is calculated 10 have diseour-
aging effect on speculative activity In
stocks. The necessity Is recognized OF time
and patience In the case of a large volume
OF mercantile credits involved In the San
Francisco calamity TO AFFORD possible OPP
portunlty for saving those that are redeem
able at all.
Large new capital outlay for the resto-
ration OF the ruined city will constitute
demand whose extent and duration are
vaguely understood. The time money mar
ket has reflected these conditions In a har-
dening tone which brought the rates OF 5is
nd for oil ko Lot tor