Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-12-24
CONFIDENCE IS UNDERMINED
Mysterious Buying Power Again Pre-
vents Stampede.
LOSSES IN BIG DEALINGS
Uneasiness is Succeeded by Steadier
Conditions, but Feverizhness Pre-
walls During Entire Session.
Special Dispatch 10 The Star.

Special Dispatch 10 The Star.
NEW YORK, December 24.-There was
actually little nothing In the news over
Sunday or in the occurrences of the day
which would account sufficiently for the
practical Generalization in which the stock
market was plunged during the first hour
Of business today. During that time there
took place in the various quarters of the
market declines running from fractional
limits to more than five points, and these
losses were incurred on tremendous deal
ngs..
For ten minutes there was great pressure
upon the high-priced stocks, and this had
the effect of frightening small traders to
such degree that selling orders were ex-
ecuted with little regard to value. But
there was. that mysterious buying power
on the floor which so many times has pre-
vented the market from being stampeded
by frightened traders on the long side. ably
assisted by the noisy bears
After the first fifteen minutes the market
steadied somewhat and some prices were as
good or better than the opening. Through
out the course of the business session, how
ever. the trading was characterized by
great fevershness and l. was evident that
confidence in the market situation has be-
come seriously undermined.
The only adequate explanation of the
course of affairs i'll the market WAS that the
genuine liquidation which become clearly
defined last week was resumed this morn
ing and il met with no counterbalanctng
degree of supporting orders, In fact such
buying of stocks as was observed seemed
to represent almost exclusively the covering
of short contracts and tentative purchases
by tire trading element of the floor who
were disposed to buy stocks solely on the
theory that the extent of the decline during
the past fortnight warranted more or less
extensive rally.
Perhaps the most striking feature which
was presented for consideration with the
opening of business was the contagious
rate charged at the fortnghtly settlement
In American stocks upon the London stock
exchange. The figures quoted ranged from
Hog to liz per cent. more exacting terms
than have been fixed within the present
generation
Notwithstanding these distressing re-
quirements, however, American stocks were
not notably weak in the London market,
and the operations here for foreign account
showed a, small preponderance OF pur-
chases
In the rather turbulent proceedings Of the
early part of the day there was little cr1ti-
cism upon the special movements in indl-
vdual stocks. Later there was some dis
cusson of the. impending strike on the
Southern Pacific lines in Texas and some
little attention was attracted to the ad-
vices from Minnesota to the effect that the
state authorities were contemplating
very large increase in the valuation for tax
ing purposes of the ore lands of the great
Northern Railway Company, which were
recently leased to the United States Steel
Corporation. ..
Great Northern preferred scored one of
the largest maximum declines which were
recorded during the day, but that was not
of itself remarkable, III view OF the market
level of the stock.