Los Angeles herald., 1905-09-08
By Associated Press.

NEW YORK, Sept. There was. fur
ther heavy, liquidation OF, stocks, today
following that of yesterday and quito
uniform declines of between and 2
points resulted in the course of the first
hours trading. The market gave evil
dence of being oversold and the percep-
covering of short contracts by the bears.
The tone of the market became extremely
uncertain and unsettled at the resulting
rally in prices
due partly to the fact that some of the
adverse factors in the days news were
anticipated in the selling of yesterday.
This was notably true in the advance in
minimum rate of discount by the bank of
England, which was made today. The
usual wide influence throughout the finan-
cial world of a change of discount rate
by that institution occurred nevertheless
No previous change had been made since
early In the spring and 1T was not since
tercSt rate charged by this influential
financial institution had moved upwards.
The successive changes since that date
have been downwards from per cent to
the 21s per cent which ruled since last
spring until today's advance to per cent.
The active demand from Paris upon
London for gold and the large engage
ments there for shipments to South
America, seeemed to be the immediate
explanation fer the action. Discounts
hardened in Berlin and Paris in response.
There was a rise in the early price for
exchange checks on London here. but a
reaction occurred later under renewed
offerings of bankers bills in the exchange
market induced by the continued harden
ing of money rates.
Call money rates went to above per
cent and the asking rates for time loans
We're advanced by many lenders. The
seemed nevertheless to have relieved the
money market to some extent and the
rising tendency in New York exchange in
Chicago indicated that the higher rates
for nOneV here affecting the inter-
ior demand upon this center. The belief
that the stock market liquidation had
kept pace with the need of contraction of
credits had the effect of checking short
selling by the bears.
The call by the state bank examiner at
Albany for a statement of condition Of
banks and trust companies as of Septem-
Der 8 revealed another requirement upon
the money supply for the building up of
the cash reserves of trust companies to
prepare for this quarterly requirement
London'S hardening money market in
duced some large selling for account of
that center which, was an influence on the
early weakness here The effective re-
covery followed the cessation of busi-
ness on foreign stock exchanges, although
the settlement of the Moroccan incident
relieved the pressure from foreign sources
to some extent.
The enthusiastic reports from the steel
trade of the sales of steel rails and other
forms of railroad equipment for 1906 de-
livery made a sustaining influence and
served to steady the United States Steel
stocks, the weakness of which was a SEN
sational influence in unsteadying the mar
ket yesterday.
Any purpose to take action towards the
money market was disclaimed as an OBJ
ject of the visit of the secretary of the
treasury to Wall Street today. But the
stock market community has formed a
habit from the experience of several years
of looking to special treasury operations
during the fall season for relief from old
entertainments on the money market A
rally in the London copper market after
a further opening decline was minor
item of reinsurance. A spirit Of timdity
easier, the price fluctuations of the latter
part of the day were. exceedingly uncer-
tain
Bonds were irregular. Total sales par
value. $3.120,00O.
Y. S. new As advanced 4 per cent on
call.