New-York tribune., 1910-07-27
STOCKS DECLINE AGAIN
Speculative Lines Strike New
Low Records for the Year.
BANKS INCREASE RESOURCES
Certain Interests Said To Be
Severely Crippled-No One
Helps Them.

On volume of business that amount
ed TO more than 100000 shares stock
market prices moved to new low rec
ords for the year in yesterdays opera
tions. sensational declines being recorded
in manv issues. especially among high
grade investment shares and securities
in the non-dividend paying class, IN
which transactions, as a rule, amount
to unimportant totals.
Among the prominent stocks. such as
Union and Southern Pacific, Reading,
United States Steel, ST. Paul and Anal
eamated Copper. maximum losses ran
from > to points, while in inactive is
sues. like Central Railroad Of New Jer-
sey. Delaware. Lackawanna d west
ern. General Electric. Missouri Pacific,
St Louis Southwestern preferred ana
Delaware & Hudson, net declines or from
to 30 points were recorded, L&cka-
wanna. on sales of 300 shares. suffer
ing the chief decline.
Speculative accounts that until yes
terday were able to maintain their posi-
ton as bull bulwarks were so weakened
that in many cases they were torceo
upon the market, the selling being O.,
I'm large part to the policy of the banks
which is to increase their cash and re-
serve resources by the calling of loans,
especially on accounts in which the col
lateral included a large proportion Oh
unproductive securities
The liquidation was not only forced,
but it was extremely acute and alarm
ing to persons who were unable to ap-
preciate the fact that the movement
was nothing more than continuation
OF the selling movement that has been
going on in Wall Street for many
months.
This promises to continue until there
has been a complete readJustment IN
the markets to d lower price basis,
through the elimination Of all weak
speculative accounts and the cessation
of a class of speculation that has been
conducted on the theory that, irrespec-
tive of certain adverse economic condl-
tons, nothing could develop to upset
the possibility Of profits.
There have been more bulls than
bears, and the former are being driven
to cover. though their retirement does
not represent a campaign waged solely
against them.
Many people asserted yesterday that
so-called unsatisfactory conditions IN
the business world We're responsible for
the break in the stock market.
There are certain factors in the situa-
ton that have encouraged bear activity
in the stock market, but the real causes
of Yesterdays decline and the declines
Of the last eleven months are to be
found in the overspeculation that de-
veloped following the panic Of 1907, not
only in Wall Street, but throughout the
country, and the Overextension OF
credit by the interior institutions which
is reflected In ali expansion in loans by
all banks outside New York in the last
year of more than S47S, 10000.
There was a heavy closing out Of
loans yesterday and the collateral
against them was forced on the mar
ket. The stock came out at a time
when there was no buying power in any
part of the list, and sellers Were COM
PEELED to take whatever price they could
get. which in the case of many issues
was the lowest recorded since the panic
Of three years ago
The market was without banking sup
port No attempt was made to check
liquidation. Bankers evidently were
well pleased with the selling, but they
put in just enough buying orders to pre-
vent real decentralization.
It is understood that certain large
speculative interests have been severely
crippled in the decline of recent days
and that no effort has been made to
help them. The local banks are in
creasing their reserves through the re-
duction of loans and the spectators
who have been carrying stocks on bor-
roWed money IN a declining market are
the victims. Many commission houses
have established q minimum margin on
speculative accounts of 10 per cent.
The following table shows the high
prices of the bull movement of 1909
the low figures recorded yesterday and
the net losses from 1909 for a number
2