| Show HEAVY DECLINES OCCURRED IN THE FIRST HOUR discounts roae in london but increased firmness in local money market new york aug 8 the nervous temper on the speculation as a result of yesterdays violent collapse in prices was clearly enough in evidence today and was promptly reflected in L the heavy declines which occurred in the first hour the recovery which followed was not accompanied by any news development and was due apparently to the act that urgent liquidation had run its course for the time the shorts left uncovered an invariable rule after so considerable a decline furnished sufficient unsatisfied demand to account for the rallying tendency conjecture continued busy over the sources of the heavy liquidation and its motives while the identity of the sellers was undisclosed the motives were not beyond defining in the money situation and the futility 0 the campaign for the rise of the last few weeks to effect any distribution of stocks while there was a disbelief in the assumption that prominent rich men supposed to have fostered the rise in stocks were being compelled to sacrifice their holdings in a crumbling market it was not questioned thai attempts to support the market were no longer n force on behalf of the abortive campaign lett artificial arti fical supporting measures the market was vulnerable to attack and was incapable of absorbing any sales to take profits the ag gressl veness of the bears sufficed to develop this situation and shake tho market such Is the general view of the evl dents of the week in the wall street district it does not escape notice that quotations for the union pacific convertible bonds certificates which had been pushed up to above 9 compared with the subscription of 90 at which they had been offered to stockholders have disappeared from the tape in the disorderly market of the past two days the diversion of out of of these bonds to the underwriting syndicate was supposed to be the motive tor attempting to revive speculative interest in securities payment of of these bonds falls due tomorrow and 75 subscriptions to southern pacific preferred stock on thursday of next week the obligations together may account tor some of the pressure to secure resources by stock market liquidation the course of the interior exchanges Is another clear index of the source of growing pressure do posits at the sub treasury were made today of tor telegraphic transfer to san francisco and to chicago published warnings from western bankers are finding their way into wall street at the same time that over trading and high prices tor labor and material not to speak of extravagance on more general expenditures have brought about a condolon of inflated credits and given prospect of close money markets during the fall smaller banks in the west have unusually large holdings of commercial paper lunning of maturity in tho tall and it is the le payment of these upon which they rely 0 o furnish balances at the reserve centers upon which they may draw to move the crops on the other side discounts rose in london today but the increased firmness in the local money market was sufficient to depress foreign exchange again with the relief afforded by the liquidation stocks were able to contend with the unfavorable factors in the situation and to maintain the ecsey ec oey reports from washington ot the intended criminal prosecution of heads of offending coi lons kept alive the uneasiness over that subject A new low records for british consol was an incident of the day copper went to a lower level both in london and on the new york metal exchange the new york cen aral reported a heavy deficit below the dividend requirement tor the quarter ending with the same date was but little more than met by tho increase tor that period in the carn inga available for the dividend the market was so far oversold however that these obstacles were overcome entirely and the market closed tron and at net adduces ad auces on tho day |
