The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-12-25
THEN UP
AND DOWN AGAIN
Shrinkage in Stock Values
With the Market in Almost
Stagnant Condition.
PROFITS ON SHORT SIDE
FEATURE WAS THE EASE OF
CALL MONEY.
PROFITS ON SHORT SIDE

New York, Dec 24.-There was a fur
Their shrinkage in the price of stocks to-
day. followed by some recovery and late
relapse again. The demand became al
most stagnant at the recovered levels. 1t
was the common belief that such buying
as was done at the lower levels was
largely for the short account and repre-
scented the taking of profits by the bears.
These profits on the short side have
reached attractive proportions IN the
course of the recent decline. but the
closing-Scut of these short accounts de-
prives the market of source of poten-
tial support and leaves IL corresponding
~ weaker from d technical STANDPOINT
Some part must be allowed to the eve OF
the holiday for the profound neglect INTO
which the market fell in the late trading.
The rush of liquidatioTf during the first
hour carried prices doWnWardS with an
ugly significance The advances were on
meager dealings and were in effect a
price reimbursement to take advantage OF
the cessation of the more urgent selling
pressure.
prices was the comparative ease of the
| calf money market during the period OF
weakness in stocks. The rate ran OF 10
below per cent by noon ana was not
4 above ST. Der cent earlier. Yet the liqul-
| dation was believed TO be due to the
money situation more tnan anything else.
| 1t was believed also to come from a
| wealthy class of spectators who were
| impervious to the effect of the recent
money furry The failure of the pres
emit superficial ease to relieve them IRON
the necessity of reducing holdings is tht
more remarka BILE. 1t is suspected thai
proyision is being made for expected fu-
\ ture necessities rather than for urgent
| present needs
| THE beginning of the London settlement
was an important influence on the mar
ket. owing to the very high charges fol
| carrying over Americans into the mex
settlement. These reached as high as i
! per cent. 1t is reported that at the las
London settlement there was very iarg
extension of account in Americans to TAX
advantage of the then easier rates 10
! money in the London market Ioday
high charges 6islodged some of these ae
counts and the selling by arbitrage houSe
against the sales in London was a larg
! factor in the weakness here. Saturday
| break in prices also had the erect OF IN
iucing large calls for additional margin
and where these were not responded 4
| holdings were sold out The week EN-
reviews induced some liquidation of lon'
accounts on a general view of the out
Tho action of the Hill stocks and 81
Paul has induced an impression that in
side investment holders of those stock
are dissatisfied with the terms of tn
new stock issues and are reducing thei
holdings on a scale very unusual Wit
the conservative holdings in those cofn
paniee The necessitOus liquidation. al
! though cOmparatlTely small. was OF az
gravated effect on prices owing to tn
paralysis of the demand. The selling wa
believed to come from pools and stron
operations were supporting measure
that formed the only substantial basis 70
/ holding prices. With this element force
| to the selling side of the market its art
ficisl character is disclosed. Sterling ex
: change declined in spite of the cas-
, money market here and London Shove
, itself solicitous over money market dc
| velopments here.
Bonds were heavy Total sales. pa
value. s2.o3S.000.
United States bonds were unchanged o
call