Los Angeles herald., 1906-03-06
BY Associated Press.

BY Associated Press.
NEW YORK, March 5-A penalty was
paid In todays stock market for some
of the excesses of the past speculation.
The paying of the penalty must be the
more unpalatable as coming in the midst
of the fruition of the expectation on
which the original speculation was based.
Incoming reports from all quarters sus-
tanned the conviction in the unparalleled
level of the country's prosperity Never
theless, stocks were thrown over today
by wholesale at heavy sacrifices and at
severe speculative losses, judged by the
enormous shrinkage indicated by the COM
parison of prices touched today with the
high prices touched while the specula tive
excitement was in force. The slump of
today was elimination of the more grad
ual declining tendency last week. The
acceleration of the pace in the latter
stages of the movement is not a novelty
III the stock market, whether the move
ment be upward or downward. Specua-
tive holdings which have been retained
hope of a turn in the tide and an i'm
provement in conditions become an in
creasing burden as prices sag downward
When selling becomes urgent in character
the quicker decline enhances the Difficult
ties of belated holders and detracts from
the disposition TO buy stocks. Hence II
comes that the latter stages of decline
take on an appearance of aggravated
weakness. Margins are wiped out, StoT
loss orders are uncovered and the profes-
sional bear traders are always on the
and force the decline.
The shrinkage in the value of collateral
makes the lenders of money additionally
eXacting and prompts the refusal of some
securities as collat teral which may have
been playing the largest part in market
activity. All of these factors were at
work in todays market. There was not
much news of any substantial character
to account for the decdline. II is to be
considered however, that while current
events show the fruition of many specu-
Lot hppn
tations also which have been proved
TO be eXtravagant.
The failure of Saturdays market to
rally on the decision of the treasury de-
pratment to deposit $l0,0000O0 in national
banks was a keen disappointment to. the
belated speculative holders who We're hop
ing for check to the decline. The open
ing of the week disclosed the continuance
of the factors of depletion of the bank
reserves.
The subtreasury continues to take funds
from the New York market and interior
exchanges indicate that the current of
the cash movement is in that direction.
day in spite of yielding of discount rates
in London.
Rather gloomy predictions were heard of
the outlook for an anthracite strike, and
the special weakness of Reading was at
tributed TO this cause.
The continued disturbance in life in
suranCe fields was given credit for the
effect on sentiment, although it had no
immediate consequence in the stock mar
ket
The liquidation in Amalgamated Copper
was supposed to come from interests
concerned in the settlement of the Mon
tana copper dispute.
The market in the latter part of the
day showed some evidence of the relief
afforded by the liquidation, and the bear
traders were inclined to buy to cover
their short contracts. This caused some
recoveries from the days extreme de-
cline, which ran to over points in Read
ing, and between and points in Anal
gamated Copper, American Smelling,
Northern Pacific. Great Northern pre-
ferred. Colorado Fuel, and a few others.
Declines ranged very generally from !
TO 2 points. The. late rally was not well
easy.
Bonds were irregular. Total sales, par
value 81. .S5S.000.
United States bonds were all unchanged
on call.