The Slump in the Steel Trust.

Taranaki Daily News, Volume XXXXV, Issue 250, 19 November 1903, Page 4

The Slump in the Steel Trust.

Under date Septf 27 the New York correspondent of the London JJaily Mail wrote :—" The fall in Steel Trust Shares has created un unprecedented situation,, because of tho complete absence of all rational explanation of the enforced selling' which has undoubtedly occurred. The Common stock lias fallen from 18 a week ago to 16J, and the Preferred from 68i to 61}. The mystery is how tho people compelled to sell can stop, as they repeatedly have done when the situation becomes critical. The previous Thursday's liquidation was certainly urgent and was very heavy. Yet it was practically suspended on Friday and Saturday. Most of tho hammering of prices that has occurred siinco has been tho work of professional "bears." The market's feeling was that disaster was imminent. A very different feeling is now prevalent. The banks are unanimous in declaring that they have no knowledge of any impending trouble, and the market's scepticism is due to the fact that the banks said the same thing before the July failures. The best quarters hold to the opinion that very large interests have been virtually forced to turn their security holdings into cash, but are able to take their time about it; hence the constant suspension oi forced liquidation. Tho extension of the Steel Syndicate is undoubtedly -a, demoralising influence, because it gives the "bears" an unlimited opportunity to attack the various securities of the company whenever the syndicate moves. The ('emersion plan, of course, involves a large advance in selling bonds. It is believed in many quarters that important interests, notably the Standard Oil clique, who sold out last year, are buying back large quantities, although refusing to follow the market on any rise. The policy is undoubtedly to wait for bargains ivhenever forced liquidation is resumed."