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Show MYSTERIOUS PROLONGED LIQUIDATION.. The present fall in prices of American stocks is a mystery, according ac-cording to Henry Clews, who in his latest review of the market, says: Wall street is completely mystified and depressed by prolonged liquidation. Prices, it is admitted, have declined to a point fully discounting all known unfavorable factors. The Moroccan situation does not entirely explain the present fall in values. In the first place, no one really expects war as a result of the present dispute between Germany and France. The prize would not be worth its cost. War between Germany and France would mean an expenditure expendi-ture of not less than $5,000,000 a day, woidd causo grave disarrangement disar-rangement of industrial and commercial affairs throughout Europe and set its participants backwards a full generation. There is every reason, therefore, to believe that ultimately the Moroccan incident will bo satisfactorily adjusted; yet behind the whole trouble lies the portentous fact that Germany wants elbow room. Her large population popula-tion needs land and resources for its expanding energies. Germany finds herself bottled up, with all the desirable portions of the wrfrld pre-empted by other nations. Consequently, whenever occasion permits per-mits her diplomats put on the greatest pressure possible at points of least resistance. This unquestionably explains the occasional eruptions erup-tions witnessed in Germany's international policy. As a result of Germany's recent prosperity her credit at homo and abroad has been greatly extended. Considerable borrowings have been made in both France and England. Credit is always extremely sensitive, and under existing conditions it was but natural that Paris and even London should curtail their accommodations to German enterprises en-terprises as long as the situation remained threatening. The curtailment cur-tailment of credit and forced liquidation induced free selling of securities se-curities by German holders, including a considerable share of Americans, Am-ericans, which were returned to this market. Failure to digest the recent $70,000,000 Argentine loan was also a cause of additional embarrassment. The result has been a strain in the money markets abroad which may be partially reflected here, particularly in view of our larger purchases of stocks from abroad. Liquidation has, of cou.rsQ, weakened the situation on the New York market. Over-extended long accounts were closed out, and there has been undoubted free short selling by those who had a close knowledge of inside affairs. The general distrust bred by political agitation and the hostile attitude of labor at home and abroad aided materially the general weakness. So, too, did frequent symptoms of trade reaction. Uncertainty as to whether some of the more important dividends recently paid had been full' earned multiplied perplexities. Decreases in railroad earnings demonstrated the smaller volume of trade. In some sections merchants are disappointed disappoint-ed that crops were not record breaking, although they may in the aggregate, prove quite up to the average. Added to these conditions we had a weakened technicnl position of the market,, so it is not difficult dif-ficult to understand the reasons for tile late decline. |