The Cairo bulletin., 1909-02-24
DOWN WITH CRASH
Came Prices in Yesterdays Stool
Market-Steel Trade Situation
Mostly Responsible.

New York, Feb. 23.-Suspicion and
distrust of the speculative position
in the stock market spread with
rapid growth today and brought the
fabric of values down with a crash.
The conviction was quick in forming
after the throwing open of the steel
market to competition last week that
the stock market position was an ar
|tificial one and had been brought
about by false assumptions of the
trade position.
This was not wholly new view
of the market, but the success which
Iall the aggressive support of values
had met. had built up confidence
that the position would be held by
the strength of powerful capitalists
supposed to be back of the movement.
Today saw quick abandonment OF
so much of that confidence as was
left after the demonstration of weak
ness last week. London sent heavy
selling orders to the New York mar
began and this helped the downward
rush of prices, which began after the
opening.
There was considerable accumula.
ton of orders from domestic sources
also. some for liquidation on account
of the trade outlook, others forced by
failure to make good margins which
had been exhausted in last week 5
fall in prices. The weak early mar,
ket which resulted from these con-
ditions was no more than had been
expected, and the alert professional
element amongst the traders stood
ready to take advantage of the de-
cline to take socks, some to cover
short contracts put out last weeK,
and some for upward reaction in
view of the considerable extent to
which the decline had run.
This buying steaded the market
momentarily, but it proved techni,
cally a weakening factor when the
decline was renewed and these pur-
cnasers were pressed for liquidation
along with the continued outside sell,
ing. A new set of weakening factors
came in the differences drawn from
the reconvening Of the supreme court
lat Washington.
Decisions were handed down
againt the New York Central for re.
batting and the speculative element
jumped to the conclusion that a later
decision would uphold the constitu-
tionality of the commodities clause
of the Hepburn law and so constram
the anthracite railroads to get rid of
their mining properties.
OF the steel trade the position Of
the speculative contingent was dis
posed to take the gloomcst view. To-
day the discussion had to do with the
likelihood of radical cuts in the steel
schedules of duties in the new tariff
bill, the fear that the trade revival
would halt until these tariff sales
were decided, the necessity that
would follow for the reduction of
wages and the danger that would
then arise of strikes and disorders.
The unsettling effect of the various
rumors was great, but as IN express
sion of these sentiments was invarl-
ably issued in the selling of stocks,
the result will be simplified into ul-
deviating liquidation. There was only
a slight check when room shorts took
the days profits, but the last break
of the day was the most demoralized
seen throughout and the closing
prices were at the lowest, the loss in
price since Saturday being Az points.
The railroad list as a whole show
ed some early resistance to the de-
moralization of industrials, but liquid
ations spread throughout the market
and prices at the end of the day We're
off over G points for all the active
stocks.