The daily morning journal and courier., 1907-08-12
NERAL REVIEW
 OF THE STOCK MARKET Eurday's Big Slump Came as a Surprise. |ARs' DRASTIC WORK Heavier Speculative Com Initment in Stocks Than
 Was Looked For.
|ARs' DRASTIC WORK

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 Was Looked For. lew York, Apg. 1.-The drastic spec live liquidation and the radical , le readjustmeht which were forced 2 h the securities market last week e as a surprise to the general pub as the feeling has grown up that necessary measures of precaution Ninst unfavorable features in the sit- on had been completed. The ex-
 of the speculative commitments in ks had not been suspected, nor had tcute a pressure in the money mar and for capital requirements been Rseen. The abortive campaign for rise entered upon late in June was oubtedly responsible for the over hnded speculative position which
 disclosed and many market pools ze, caught in an embarrassing posit- which necessitated a costly throw & over of holdings. The responsibil- 5 for the upset lay largely in the &fety over the renewed pursuit of porations. Each days published IS gave force ito this sentiment. The 24O ,00O fine levied on the Standard company a week ago was supple ated Monday by the hostile criticism Corporation methods contained in the ort of the commissioner of corpora ls and led to extended discussion of application of the law to other cor ations. The attorney general of the 8ted States was quoted as favoring ninal prosecution of the heads of off, ding corporations with a view to ir imprisonment. State authorities the south were proceeding against roads for the revocation of charters non-observance of state laws. An sressive bear party in the specula- made full use of the sentimental uence of these happenings and made ce raids on prices and helped to un> CT vulnerable positions and force idatlon.
 ther circumstances are clearly dis nible, however, to accent vulneTabil- of the over extended purchases of : cks in insufficient margins. The tracting resources of the money rket was a prime factor. Surplus E erves of the New York banks are a lower lever than at this period for ny years past, Nevertheless the | ssure on foreign money markets and present scarcity of commercial bills ! the foreign exchange market deterr- the usual anticipation of credits in t field by the sales of Long bills and threat was held over the market an outgo of gold. Early in the week 1000 was shipped to Holland, and the bet of this incident was marked on < timent. The rise in money rates &e which resulted put a stop to the 1 d exports. On the other side the prior exchanges moved against New k and interior lenders began tc hdraw the credits placed in this rket. Shipments of currency to the 2 erior were the evidence of coming ds for moving crops. Western bank. were quoted at the same time al pngly advising caution in the de: < ldance on credits and alleging ition of inflated credit in the west 1T trading and high prices for labol
 materials together with much gen
 extravaganza, which presented { icate situation.
 ontinued business activity wticl ms yet to be unimpaired in genera Rs, promises continued. pressure ol hey resources, while the prices o wing down which most observers ar # hdent will develop, presents it's per in the possibility of stocks left ol nd in excess of needs. Countr. lks have invested freely in conner
 paper as against their usual GUS h of deposhting in the reserve cen s ard will depend on the maturit. these obligations during the fal nths to supply resources to draw up to move the crops. While reserve the reserve centers are thus bein wn upon, the same banks may b led upon to carry the commercia Der from these sources. The demand
 capital for other purposes. mean e, remains unsatisfed. During las ak payments were made of $3,00O, 0C subscriptions to Great Mortimer ferred new stock; $15,0O0O0O to Un Pacific convertible bonds, with pay hit in prospect next Thursday C O00, 900 for new Southern Pacif elk. This outline of conditions sufflc tly explains the general opinio ongst bankers that stringent none rkets during the course of the yea
 hardly be escaped. The pressuI
 capital abroad as well as here an
 prostration of the investment sitU were morrored in the new falls tish consols to a new low record fC
 year. making the lowest price sinC the first half of the last century.
 he liquidation of securities show
 working out of the remedy in or |. The recession in iron and ste
 the further decline in copper witt
 having reached a stable level al
 effects of curtailment of deman
 the effort at readjus ment in al CT department On the side of tl ney market attention is turning
 probable measures of relief by u