Los Angeles herald., 1906-06-28
Rv Associated Press.


NEW YORK, June 27.-There were no
special new developments in conditions
today to account for the rather violent
break in prices. The influences which are
responsible for the unloading of stocks
have been gathering force for some time
past Todays break was due as much as
anything to the discouragement over the
failure of the market to respond to any
thing in the nature of favorable develop
ments. This had the effect Of fixing opin-
ion that all favorable opportunities were
being taken advantage of to sell stocks.
This resulted in reassurng the uncovered
bear interest which had begun to mani
fest some misgivings over Its position
owing to the extent to which the decline
has already extended and the proportions
to which the short interest Is reputed to
have grown
with the demand from the bears to
cover shorts reduced, there was no eff
fective buying from any quarter to alb
sorb the heavy liquidation which came
upon the market today again. Some per-
morning to support prices to drive the
ssshorts to cover. This had the effect for
al while of intimidating the bears and
on any considerable decline they showed
a disposition 80 take their profits and to
With the progress of the day the pres
sure of long stock on any advantageous
opportunity became clearly manifest. and
the efforts at support were almost wholly
abandoned. %
An example of the action of the mar
KBJ IN taCe or good news was FURNISHED
in the case of Anaconda which broke
violently on realizing on yesterdays div
idend before the general market began
to weaken. Its depression was commun-
The early example of the weakness
of Pennsylvania in face of the rise In
Baltimore and Ohio dividend was also
kept in mind and helped to convince SEN
timent that important liqmdation was
still in progress when any favorable op-
portunity offered. The money market to-
a. 1f ~
demand for funds on CALL although the
tone was somewhat firmer.
A large reduction of commitments on
the part of the stock market pools
some cases of severer scrutiny of col
lateral in loans. Many reports were cur
rent of discrimination against some of
the industrial stocks as collateral on
loans and while the banks were not in
clined to admit these reports, the special
weakness in the stock market of the
a condition of disfavor of these securi-
ties as their present level of values.
Calling of loans proceeded to some ex-
tent in preparation for the July settle
next week in connection with these set
Elements had something to do with the
> pressure to sell. Sterling. exchange con-
tinued to decline with increased pros
poets of gold being secured for import
1t is now believed that the $40. 900 of
government deposits will be withdrawn
from the national banks on July 10 In
accordance with the announcement in
order to facilitate the re-deposit of gov
ernment funds in San Francisco banks,
which Is intended.
A meeting of ST Paul directors with
out taking any action on the expected
plan for financing the Pacific coast ex-
tension added to the speculative feeling
of disappointment and increased the
weakness of the stock market which was
most acute in the last hour. with closing
prices near the lowest.
~ INo I % q
points, and the leading speculative favor
ties lost from 3 to points and upwards
on the days dealings.
Bonds were irregular. Total sales, par
value 81, ,935 900.
United States bonds were all un-
changed on call.