New-York tribune., 1906-07-03

Further heavy liquidation, accompanied by
sharp declines in values, marked the course Of
trading in Yesterdays stock market. In many
instances new low records for the year were es-
tablished, and in the case OF Pennsylvania the
stock reached its lowest price since 1904, de-
clining at 12246, which compares with high
figure for the current year Of .14715, which was
recorded in last January's upward movement
Throughou: the active list losses Of / per cent
and more were common the chief weakness
being reported in Baltimore & Ohio, St Paul,
the Hill shares, Missouri Pacific, New York Cen
tral, Beading, Southern Pacific, Union Pacihc
and Illinois Central This weakness developed
after brief exhibition OF strength in the initial
transactions and it was caused by the same
class OF selling which was noted in last weeks
market and which was intensified by an advance
in call money to per cent, the ruling rate being
6 per cent. and by the idea that the govern
neat's S30Oo0O00 Panama lean and the with
drawal Of S1O000000 of government deposits
might lead to disturbance in the local money
market. And doubtless the absence of gold i'm
port announcements served to increase the bear
lsh sentiment among stock market operators
While stocks We're fairly well taken on the de-
cline, there was no attempt to rally prices and
no indication Of a disposition on the part Of
banking interests to support the market, except
on the appearance Of Generalization In the last
hour the heaviest selling Of the day developed,
and in that time the only active issues which
showed resistance to the selling pressure were
Anaalgauaated Copper and Anaconda The So
called Pennsylvania and New York Central
groups We're extremely weak. while a feature OF
the day was the persistent heaWness Of the high
grade issues, their declines evidently represent
ing investment liquidation. The close was gen
orally at the lowest
number Of Wall, Street interests believe that
there can be no permanent recovery in the mar
ket for securities until values have declined to
a lower level or until the price of money has
moved 70 figures well under those now prevail
ing. With time money at its present ,rica can
italists ind II more profitable to employ their
funds in money than IN stocks, and it is a known
tact that part OF the recent liquidation on the
Stock Exchange represented operations Of this
character, though Of course the chief selling
reflected forced sales and pressure from 9. par
ticularly well organized bear party It should
be borne IN mind that securities have declined
for reasons totally apart from those affecting the
condition OF the country's industries, the down
ward movement in quotations being recorded AZ
a time when reports from all centres of trade
have shown a remarkably strong position OF
business affairs in the United States Weakness
IN the United States Steel shares has contributed
TO much Of the Wall Street pessirnsn1 as the
theory has been put forth that the heaviness in
these issues foreshadows disturbance in tha
great iron and steel industry According 70 the
information received by people actively identified
with the steel business there is no warrant for
the belief that reaction Is soon to develop ",
iron and steel; indeed all indications point tow
ard further material prosperity in the various
departments OF this important line OF the coun
trys commercial enterprises The United States
Steel Corporation ends the half year with sur
plus N the neighborhood Of 500 900 OoO and this
fact suggests to some people the possibility OF
the declaration OF a dividend on the common
stock, inasEnucE as the theory has been that the
corporation would resume disbursements on +rie
issue when II had accumulated a surplus Of tha
amount just named Nevertheless there IS eood
reason for the statement that It is not the inter
ton OF the directors TO place the common shares
IN the dividend column IN the immediate future
The preferred may now be considered a ner
rnanent dividend payer Of great intrinsic value.
and its present price therefore ought 10 anpeaI
10 investors who are believers in the pernanency,
of the country's industrial activities Earnings
OF the Steel Corporation two years ago showed
an enormous contraction. owing to a temporor,,
period Of depression. but Notwithstanding this
falling off in income, earnings were large enough
70 warrant the continuance OF dividends on the
preferred stock Railroad earnings for the third
week in June show an increase of more than -
per cent compared with the same period a year
ago and this gain is the more Significant owing
TO the unusually heavy traffic receipts which
were enjoyed by the companies last year
II is quite generally believed that negotiations
are under way for the importation Of large
amounts Of gold no matter whether or not The
Treasury Department decides te resume deposits