The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-12-20
MARKET BREAKS
IN WEAK SPOTS
Downward Rush of Prices at
the Opening of New York
Stock Exchange.
RECOVERY At THE CLOSE
GREAT CONFUSION OVER ST.
PAUL SITUATION.
RECOVERY At THE CLOSE

Few York Dec. ia violent spasm Of
liquidation swept over the stock market
today and caused a downward rush of
prices that looked threatening at one time.
A substantial recovery occurred before the
closing. The storm center was the group
of stocks which in the customary ex-
preston of the stock market, have en-
Jcyed rights" recently, a phrase which
operators i'm the stocks now use with an
ironical emphasis. The continued strin-
gency of the money market and the fail
ure of any appreciable relief from the OPP
Grafton of the treasury plan for as
sistance had a diseouraging effect on
sentiment. The crumbling OF the market,
at weak spots spread to pretty much the
whole market, although there were a few
prominent stocks which maintained a
show of resistance to the flood of selling.
The confusion i'll the market for 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 ad-
United to quotation on the stock exchange.
The opening price for st. Paul with the
price quoted tor the rights added showed
q rise of 81 over the closing price for
the stock yesterday.
The hope thus engendered that the dis
turbance in the stock was over was short
lived and it soon began to recede again
under heavy offerings. The admittanee to
quotation of the rights helped clear up
one cause of. confusion by providing a
market valuation for purposes of fixing
collateral in loans on St. Paul. The sud
denness with which the books of the
company were closed after the announce
ment of subscriptions on Dec. 81 on the
eve of the yearly money settlements, was
the subject of son,e bitter criticism and
OF profesSed fears of a hidden design TO
disturb the money market. The pursuit
of this line of reasoning led to some ex-
cited unloading on the part of specula-
tors who had been convinced that they
were following the leadership in the mar
ket of the most Influential capitalists IN
the country who were banded together
for mutual protection OF the speculative
position from harm from the money sit
uatiOn.
Professional traders were loud in pro-
testation of a suspicion that the course
of events mad been especially arranged
TO cause break in prices. There was
an extraordinary confusion and contrad1c-
ton also in the estimates of the real
value Of the rights which have been Of
fered so abuncautly in the last few days.
St Paul, Northern Pacific and Great
Northern preferred still suffered acutely.
therefore in the prevailing weakness. The
high-Drieed stocks generally were suffer
ers in sympathy. There was an enor-
NOUS speculation in Reading and heavy
selling when rii1nors were circulated that
there was to be no change In the dlyi-
dend rate. as predictions had been confi-
IDENTIFY made of a 6 per cent dividend rate
for that stock. The extent of the recoV-
strongly also to extensive operations by
bears.
The presence of the secretary of the
treasury in the city gave rise TO eonJec-
lures of more substantial measures OF
relief for sthe money market. which con-
tinued very stringent both for call and
time loans Sterling exchange was very
weak In response to the money Strlngency
and London showed keen apprehension oil
gold on the part of New York. New YORK
bankers were inclined to the opinion thai
a demand on London for gold would DC
iniudicious, as it was believed beyono
doubt that the Bank of England would
advance its discount rate tomorrow
should gold he taken from that market
The news of the presence in Wall street
Of the secretary of the treasury came al
q time when the liquidation had spent
most of its force. The increase in the
dividend on Lehigh Valley also revived
homes which proved fsllacious of an adj
vance in the Reading rate. The COVERING
by shorts became quite precipltate eno
worked a material rally in the whole
market The closing was strong ano
showed a number Of substantial net gains
after a level of prices at the low point
ruling all the way from l to points
below last night.
ue 50 29S. coo. , -
T-nited States bonds were unchanged or
call