Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1906-12-20
OBSERVATION-DISCLOSURES


NEW YORK, Dec. ia violent
spasm of liquidation swept over the
stock market today and caused a down
ward rush of prices that looked threat
enng at one time. substantial re-
covery occurred before the closing.
The storm center was the group of
stocks which in the customary eXpecta-
ton of the stock market have enjoyed
rights" recently, phrase which opera
tors in the stocks now use with an
ironical emphasis.
The continued stringency of the
money market had a discouraging eff
feet on sentiment. The crumbling of
the market at weak spots spread to
pretty much the whole market and
there were prominent stocks which
maintained a show of resistance.
The confusion in the market in st.
Paul continued and was an unsettling
influence on the whole market. The
subscription rights came off both
classes of the stock this morning. The
rights" were also admitted to quota
ton on the stock exchange. The OPEN
ing price for ST. Paul with the price
quoted for the rights showed a rise of
35 over the closing price for the stock
Yesterday. The hope thus engendered
that the disturbance in the stock was
over and short lived and it soon began
to recede again under heavy offerings.
The admittance to quotation of the
rights helped clear up one cause of con-
fusion by providing naturalization for
on St Paul
The suddenness with which the books
of the company were closed after the
announcement of subscription rights
and the call for a $10,000,000 INSTALL
ment of subscriptions on December 3
on the eve of the yearly money settle
ments was the subject of some bitter
criticism and of profeSsed fears of a
market. The pursuit of this line of
reasoning led to some excited unload
ing on the part of the spectators who
had been convinced that they We're fol-
lowing the leadership in the market of
the most influential capitalists in the
country who were banded together for
mutual protection of the speculative
position from harm from the money
situation
Professional traders were loud IN
protestation of an opinion that the
course of events had been especially
arranged to cause break in prices
There was an extraordinary confusion
and contradiction also in the estimates
of the real value of the rights which
havs been offered so abundantly in the
last few days. St Paul, Northern Pa
cific and Great Northern preferred still
suffered acutely, therefore. in the pre-
vailing weakness.
The high priced stocks generally were
sufferers in sympathy. There was an
enormous speculation in Reading and
heavy selling when rumors were circu
lated that there was to be no change
recovery from the extreme declines
pointed strongly also to operations
by bears.
Sterling exchange was weak in re-
Spouse to the money stringency and
London showed keen appreciation of
demand for gold on the part of New
York.
The news of the presence in Wall
street of the secretary of the treasury
came at a time when the liquidation
had spent most of it's force.
The closing was strong and showed
number of substantial net gains after
level of prices at the low point, ruling
all the way from one to seven points
below last night
Bonds We're weak. Total sales, par
value. $2,29S,000
United States bonds were unchanged.