Los Angeles herald., 1906-10-21
RUSH TO SELL
STOCK SHAFEi
MARKET CLOSELY BORDERS
ON STATE OF PANIC
Swift Drop In Value Of Many Leading
securitIes--London Heavy
3eller--Revlew for
the Week
By Associated press.

By Associated Press.
NEW YORK. oct. 0.-rhe stock mar
ket was thrown into demoralizaton to-
day by the further consider ation OF the
new conditions ~ the money market OF
fered by the advance In tue Bi-nK OF Eng
land rate 10 . per cent and by the heaNy
inrOad on the surplus reserves OF the
New YORK banks as revealed by tho BANK
statement.
The conditions as the market closed
were panicky and stocks were being
thrown over indlscriminately and AZ swift
concessions in prices. Some of the prin-
cipal declines win sufficiently picture the
conditions. Greet Northern preferred
broke s. Anaconda 10lR Reading ga st.
Paul and Canadian Pacific Az. Union Pa
ciflc, Atlantic Coast Line and American
Smelling 4, Northern Pacific and Colo
RADIO Fuel 31s,- Baltimore 4, .Ohio 3N and
Louisville & Nashville and Amalgamated
Copper ., and In the list generally wide
declines throughout, ranging Zip to @ts
The food of liquidation broke through
all efforts to support the market and
threw It into the demoralised condition In
London was a heavy seller in this mar
let and grave apprehension was reported
in London for the consequences In the
coming stock market settlement there.
The attitude of the Ban kof England
makes II clear that no further gold VIII
be relinqulshed to foreign markets and
the necessity is recognized of attracting
reserves of the bank, Severe measures
for the cutting down Of American credits
in that market are looked for. The posi-
tion in the stock market is generally un-
derstood to be maintained to an impor-
tant extent by credits thus held.
The currency movement to the Interior,
especially to the cotton region, has been
resumed in full force and the New York
exchange has fallen back to 40 per cent
discount at Chicago The uank state
rnent pd not reflect all of the, expected
drawais. But the SIC 0OO.500 loan expansion
is clean notice of the pressure for credits
which the London Developments have
thrown upon this market
Reports were current today of som G
long time loans being negotiated here and
rates in that department are 6 per cent.
strongly bid for all dates with an ex-
lief by the stock market liquidation wa $
thus plainly indicated. It's violence and
precipitancy. however. was unexpected
and left sentiment disturbed and anX-
Total sales of bonds, par value. 81 ,444,-
~. Review OF the Market
The stock market was In a lethargic
condition all through the week until 1t
was throwfi into d'sorder bv tn, unex-
yected advance on FRIDAY in the Rank Of
England discount rate. The instantaneous
effect was worldwide. II is obvious that
the extraordinary reduirementse IT tn
United states ard the resulting Discus
sion of this countrvs account IN the Lon
don market lies et the bottom of the con-
market % has has fallen. The anathv Of the
New York stocl market durirg the week
has bern attributed more in the com
mon estimation to the approach Of the
elections
The public has been out of the mark ct.
and II is obvious also that tho market
operations nv tho powerful co'rh'na ~ ors
have been discontinued THE smaller ola SIS
eaf frad h sax hod the 81 f-cf
selves The restricted ov1e~atiors cf t'-'s
class served however ~ fest the cordi-
ttons IN the rnar'eet Thrv dernonst-a ed
that the marlset was u''der INTENTIONAL
restraint anparentlv ir-tepdcd tn hrId 1t
I'm a cord'tio~ IF nuicscerce, Tra der's'
attempts tn advance prices r'et with ob-
stacles in the shane If large oTertn es
of stocks. on the other hand snch If
ferinss were withdrawn when prices re-
cedsd and wllen the traders tr'od to ex-
tend the decline nv short sales they
found their offerings sbsc-bcd with deter
inination. The action Of An,a'ea ma ted
Copper was conspicuous example of
this tendency.
Confidence was general in the advance
in the loan rate to nor cent hut specu-
iative attempts to raise the price met
with failure. The same course was p,ir-
sued on the saRgressiv n dvances in the
stock when the directors advanced the
dividend. TT was the general supposi-
tloI that the purpose of this course was
to keep the market quiet until after the
We're being made of the movement of the
stock markets conduct of the political
questions. For the same reason various
political proiects which have been the
subJect.of rurnors have been dropped out
of the discussion.
With the progress of the week the belief
grew that developments in the money
market were having as much to do with
the restraint on the stock market as the
political situation. The weeks down
ward course of international rates was
HRc nh Fx,6 sanAl
rise In money rates again here there was
downward plunge in foreign exchange
rates which wiped out it's recovery and
Drought me rate hack on Thursday morn
ing to . level that pror1ised to renew the
engagements of gold. That a renewal of
the gold movement was counted upon to
relieve the local money market was sug-
gested by the sharp response Of the stock
market and the money market TO the
action taken by the Bank of England to
defeat this inroad upon London money
II had been assumed that the replenish-
ment already offered to New York bank
reserves bv the import of gold an dby
the deposit of government -fnuds was
annie ~ carry the market through the
needs Of the autumn and protect the stock
market from disturbance. II Is evident
thet that assumption was shater hy the
week events in the money market and
renewed renort Of foreign gold supplies
was hnned for The action If tho F2a,,lS nf
England has dsappoir ed that hone ard
tne Interior consequences are not yet
Ronds have become duller again and
weakened with the late break In stocts
United States Is advanced u and the
new rs V per cent on call during the
week
The London Exchange
RN ,A~~~~k@toS Drose
LONDON. Oct. 9o.-The stock market
this morning. continued TO show much
- wrra rt.-
the feverish excitement which followed
the first announcement of tha in1.raas sn