Los Angeles herald., 1906-07-13

NEW YORK, July 12-Speculators who
opposed a decline in prices rather rue
fully pronounced today's stock market
'defenselesS.' So far as it implied an
entire absence of buying power the term
was accurate. The only buying in evil
dence was an occasional covering move
ment by the successful bear traders who
were satisfied to take inviting profits on
the decline in that way. What passed
for news about the stock exchange in
explanation of the movement clearly was
simple conjecture for the most part by
the traders who were following the move
ment without knowing where the large
supply of stocks came from that poured
into the market. The volume of the
dealings had risen by noon to nearly the
total of the day before.
The quick effect of the revived activity
in forcing down prices is evidence of the
prevailing disposition to sell on the part
of those who make their appearance in
the market at all Traders laid stress on
the continued absence in the far west of
the president of the Great Northern as
discredting the rumors of yesterday that
the terms of the Great Northern ore
lands deal were to be promptly an
nounced. As a matter of fact the weight
of professional opinion is that this and
other reports which have been the only
available means of causing prices to ad-
vance are much more effective while left
in the realm of surmise than they would
be if officially confirmed, 1t is feared that
the formal announcement would lead 20
selling to realize, as in the case of other
favora abe developments recently.
Another favorite supposition of the
traders was that lately returning tourists
from Europe. having close relations with
great capitalists. have brought back a
definitely formulated policy of liquida-
tion and the COuntenancing of a decline
in prices. The dislocation between income
return on securities at the present level
of values and on money loans is one al
lotted motive for this policy. But the
desire of affordins an object lesson" If
the timidty of capital and the damage to
flow from the governmental and popular
attitude toward corporations finds an even
more prominent place IN the assigned
causes for this alleged policy A violent
decline in the London price of copper and
response in New York and the falling
off in the production of iron reported by 4
leading authority We're causes of weak
ness that seemed more substantial
AS a matter of fact the movement o
the market was traceable largely to tech
nical conditions. The decreasing demant
for stocks on the recent rally served al
a warning that no substantial buying wa
coming at the prevailing level of prices
Yesterdays late reaction brought prices
near to the low level of the movemen
touched last week. Today these prices
weer broken through in a large number
of stocks. although some of the prtncipa
market leaders are exceptions. The effec
was to encroach on margins and uncover
stop loss orders which escaped the pre-
vious decline.
There is no present pressure on bor.
loans on time to some of the stock mar
ket pools are running to their maturity
and difficulty is found in satisfactory
renewals
The money market was tranquil and the
presence of the secretary of the treasury
in the city was the occasion for an i'm
preston that the proceeds of the forth
coming Panama canal bonds will be lef
on deposit with the banks and thus guart
against an upset money market condition
as consequence of subscriptions in con
nection with the current withdrawal D
$4,000, 600 of government deposits. Intima
tions of a purchase by the government o
silver bullion for mintage were also cal
culated to suggest a means of releas,
of government funds to the market Thes'
suggestions of clearing conditions in thu
money situation were given some cred
for the light recovery from the declines
though the taking of the days profits OF
the short side played an important part
The closing was rather feverish, but will
most Of the rally held.
Bonds were weak. Total sales, pal
value. 50 0O3 900
United States Is advanced 3 per cen
nm ca11