The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-04-28
FINANcrAL AND COMMERCIAL.
FRIDAY, April n.

FRIDAY ApTn ~
The largest declines made in tho stock
market on any day since the earthquake
in California and, in fact, on any day for
several months back occurred to-day.
The selling, though at no time panioky,
was Of a demoali1ed chara cter that had
in it a good deal of hysteria and was OF
the sort that usually suggests the culmi-
nation, at least Temporal ily, Of a declining
movement. To-day's decline came quite
Unexpectedly and, as was admitted by all
Observers, was directly attributable to a
violent break in one or TWO stocks. III
market opened strong in response to a
materially higher range Of quotations
for American stocks in London, the strength
abroad being not unnaturally due to the
great improvement in financial conditions
there arising from the brilliant success
Of the new Russian loan. 1t was evident
that this loan had been genuinely over
subscribed for many times in the Paris
market, and it was stated to-day that
applicants for the Offering would eceive
only ! OF 2 per cent. of their subs oriptions.
This has served the immediate and benefi-
cent purpose Of making money easier in
Paris, 40 that to-day an enga cement of
SOtuOV,VVV low BoIu " hhiPotS hANNS
private banking Arm in this city in the
London market represented in reality a
release of this amount Of money by French
houses. Durin the f1rst two hours Of business
the market here remained steady at a level,
in the case of many Of the active stocks.
nearly q point above yesterdays closing
quotations. After sagging a little under
what seemed to be desultory sales by the
room trading element it was thrown into
confusion by a running decline, within a
relatively short period of time, from the
highest prices Of the day. % points in the
Great Northern preferred and 10 points in
the Northern Pacific shares. 1t was argued
that speculation for the fall would not
naturally be the cause Of such a move
ment and the inference of the moment
was that liquidation Of a character much
moro serious than any that had yet been
seen was in progress. The true reason for
the drop in Great Northern preferred and
Northern Pacific was, however, pretty
we'll ascertnn led before the close of bust
ness. A certain speculator, ~distinctively OF
the plunging order, who had been carrying
for the rise an unduly large quantity of
these high priced stocks, found that his
margins upon them by reason Of losses
elsewhere we're reduced; and as he did not
fortify them with the additional security
desired by his brokers there was a species
of enforced and at the market" selling
for hie account. This depressed the whole
market in short order. There was not only
a general and very hasty selling Of stocks
OF all kinds held for the advance, but an
extension on an enormous scale of commit
-. A. la C.1l,r- ~f atnnGo
for the short account wal indeed INDUCED
in with a recklessness and daring only
matched by that which has been seen in
the not far distant past on the other side
of the market: and under all this heavy and
at times sensational declines were made.
After the break in Great Northern preferred
and Northern Pacific the market rallied
but again fell to the previous low prices
and h~uctuated very feverishly thereafter
until the close of business. Prices at the
end were, as a rule, quite above the lowest
quotations Of the day.
There we're no financial developments of
interest to-day aside from the actual fiuotua-
tions of security prices. or rather none to
which Wall Street paid any attention.
Indications regarding to-morrow's bank
statement were so confused as to be prac-
tically valueless for purposes Of an estimate
of the return. Compilations gathered from
statistics furnished by many of the leading
banks pointed to a net cash loss by the
Clearing House institutions of between
S. 900. 900 and $40 coo, 900, but as the large
release Of Government money yesterday
and to-day on account of fresh gold iu-
ports will only figure to a small extent in
o-r,NrrCy'a rat urn nnnar the "a VarDna
system. it is very possible that the position
of the banks in the matter of cash holdings
will be exhibited as weaker han IT really is.
The stock market liquidation during the
week must lave heavily reduced loans
made on collateral security, but it is said,
on the other hand that the bank loan ac-
count has been extended by the borrowing
Of time money by fire insurance companies.
Despite all stories to the contrary, it is be-
lieved that there has been yet no consider
able amount of selling of securities by the
insurance corporations affected by the
San Francisco disaster. and it must be evil
dent to every intelligent person that a very
large proportion of such securities held by
the life insurance companies as would be
parted with in order to obtain funds are Of a
character that would be disposed Of by
private rather than by public sale. The
idea that to-day's selling of high grade
stocks represented insurance company
liquidation is a tale fit only for the babes
and children of Wall Street. Whatever
view may be taken by any one regarding
the immediate future of the market, it is
clear that conditions there are immensely
improved by such a drastic purging as has
been recently and rapidly accomplished;
and among the higher banking circles the
opinion was freely offered that the days
low prices for securities represented bar
gains.
New York Stock ExOhanEe sales April III.
CLOSING PRICES OF uSIrHp Stains BONDS,
RGd dttfd g1 x,k.d