| Show HOCK mm MARKEl MARKElIS IS VULNERABLE HER Successive Waves of Liquida Liquidation liquidation Liquidation tion Have Swept Away the Profits of Many Years REVIEW OF THE PAST WEEK DECLINE IN PRICES CONTINUED UNCHECKED U New York Aug 18 The decline In prices which has been in progress for some time continued during the past week with many securities reaching the lowest quotations in years yeam Successive waves ot of liquidation during the last few months have swept away the profits of ot years ears and have made the stock market extremely sensitive and vulnerable The contributing causes of the situation have been and are the fears of oC a further re restrictive campaign against corporations by the next congress and the legislatures of various states higher rates for mon money money moncy ey cy with reduced supply of available funds apparent Indifference to the de dl decline cline clime In stock prices on the part of In Interests interests with large capital Investments at stake visible of at weak wook spots in the tha trade situation and monetary conditions that preclude any hope of at immediate aid from Europe for American business en enterprises enterprises enterprises or stock market operations Liquidation Continues The week began with the market under undera a cloud Liquidation had not run its course even after the ten and fifteen points decline of the preceding week The heavy beavy reduction in loans the previous Saturday hardly compensated for the large loss In cash and with another gov government report on the Standard Oil com corn company company pany published on Monday Walt Wall street began the week nervous and apprehensive sive Combined with this were the ex expressions expressions expressions of a cabinet member concern concerning concernIng concerning ing the proposed plan of prosecution of at I corporation managers who violate the law saw Asa result holders of securities did not know how long their shares would be he e Immune from attack Fears of oC further proceedings against aga corporations made the capitalists back of them indifferent as to the outcome and it wa was obvious that thaC they the were giving no support to the market The strike of ot the telegraph op operators operators operators while not very disturbing to bus business busIness iness mess caused annoyance and the most was made of it as an unfavorable Inci md Incident dent More legitimate however as ammunition tion for lower prices was the failure of the Pope Manufacturing company and the tho apprehension created of similar em embarrassment embarrassment embarrassment In other quarters Big Interest for Standard An example of ot the state of the market Is given by b the fact that the Consolidated Gas company which Is dom dominated domInated mated by Standard Oil Interests was forced to borrow on notes at 7 per cent A large amount of money was loaned for six months at 7 per cent Com Corn Commercial Commercial f mercial paper seems to be discounting 8 and the banks reported many cli clients clients clients who seldom come to them for ac accommodations accommodations I forced to borrow borror because I of at Door noor collections On the other hand call loans were surprisingly low but this TP rejected merely the desire of lenders to toI I k keep p their capital In hand The shrink f ag 6 In stock has been Sufficient to allow I In Inome Some ome Yields to keep pace with prevail f fg g Interest rates Many substantial properties sold during the past week from to less In market val value ue u than on the first of oC August and prime railroad stocks at present dividend rates have begun to return investors from 6 S to 7 1 per cent whereas they offered a yield of but 4 to 5 per cent not so many months ago Conditions Abroad Domestic money mone conditions have been somewhat duplicated abroad the most striking example of oC this being afforded by bythe bythe bythe the Bank Hank of England action in raising its Us official rate to 4 per per cent This was more remarkable In view of the fact that Its reserves increased 4 I per cent and went above the figure of the year before Prior to its recent advance the bank had hall an announced flounced its refusal to discount for the open market at less than 4 I per cent Tt The e whole run of this plan appears to be beto beto beto to clear the London field of the many man finance bills which the Joint banks have accepted in large quantities the past two months and which were beginning to threaten the gold reserve resene of the Bank Ban of England Evidently that Institution de determined determined this year to take matters in hand early enough to prevent a recur recurrence renee rence of ot the gold exports to American markets which resulted In such ston BI n in November and December of last I year jear ear Locally there Is a disposition to tor rely r ly on the treasury again for assistance J but so far that department has made no sign Meanwhile the New York banks are lowIn low lowin lowIn I in reserve the interior Is keeping up its exchange against New York and the crop rop moving season which drains the re I nerve flEn cities each year despite the talk of I of at the Interior to finance Itself is moving along to its flood I |
