The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1907-08-19
A GENERAL REVIEW.
OF the Situation and the Causes of
Wall Streets Gloom.

OF the Situation and the Causes of
Wall Streets Gloom.
New York, Aug. 18.-The decline
in prices, which has been in progress
for some time past continued during
the past week, with many securities
reaching their lowest quotations in
years Successive waves Of liquida-
ton during the last few months have
swept away the profits Of years and
have made the stock market extreme
ly sensitive and vulnerable to attack.
The contributing causes to the situa-
ton have been and are the fears of
further restrictive legislation against
corporations by the next congress and
the legislatures of various states;
higher rates for money, with reduced
supplies of available funds; apparent
indifference to the decline in stock
prices on the part of interests with
large capital investments at stake;
, visible signs of weak spots in the trade
situation, and monetary conditions
that preclude any hope OF immediate
aid from Europe for American bust
! ness enterprises or stock market oper-
ations.
The week began with the market
under cloud. Liquidation had not
run its course even after the ten and
fifteen points decline Of the preceding
week The heavy reduction In loans
the previous Saturday hardly compen
stated for the large loss In cash, and,
with another government report on
/ a. -
on Monday morning, Wall street be-
gan the week nervous and apprehen-
sive. Combined with this were the
expressions Of q cabinet member con-
corning the proposed plan Of prosecu-
/ ton of corporation managers who vi
olate the law.
AS a result holders of securities
did not know how long their shares
would be immune from attack. Fears
OF further proceedings against corpor-
ations made the capitalists back Of
them Indifferent as to the outcome and
it was obvious that they were giving
nc support to the market. This in
difference was a valuable asset to the
spectators for the decline, and they
offered prices down with continuing
success.
News developed to play into the
hands of the element working for low
er prices The strike of the telegraph.
ers. while not very disturbing to bust
ness, caused annoyance and the mos
was made of it as an unfavorable in,
cident. More legitimate, however, al
~, 1tf f1Y1 fO. NJ
failure Of the Pope Manufacturing
company and the apprehension created
Of similar embarrassment to othel
quarters.
An example Of the state of the none.
market is given by the fact that thu
Consolidated Gas company. which Il
dominated by Standard Oil interests
notes at Z per cent. A large amour
of money was loaned for six month
at Z per cent. Commercial paper seem
to be discounting slowly and the bank
reported many clients who seldom
come to them for accommodations
rather maintaining respectable bal
ances, forced ITO borrow because o
pG0r ColieGllOHS' Odl tllG OlHEl IldHt
| call loans were surprisingly low, Blu
this reflected merely the desire c
lenders to keep their capital on hand.
The shrinkage in stocks has bee
sufficient to allow income yields t
keep prices within prevailing interes
rates. Many substantial propertle
sold during the past week {
from $15O0O,0OO to $25,OOO,OOO les
In market value than on the 1:
of August and prime railroad stock
at present dividend rates, have begu
to return investors from to Z pt