Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1906-03-01
BY Associated Press.


NEW YORK, Feb. 2S.--There were no
developments in conditions Of affairs to-
DAY to account in any measure for the
heavy liquidation and the violent declines
IN prices which occurred in the stock
market.
An active demand developed for money
ana there were considerable Withdrawals
of credits from the stock market. But
1T is not probable that restrictions on
credits were large enough to force
LIQUIDATION in any proposition to the I'M
in money. rates, however, and the SELL
ing which was induced proved amply
sufficient to topple over market which
had become topheavy and easily vul-
nerable by a progressive growth of dis
trust over the level of prices ruling and
the means which have been employed to
achieve that level A number of the
projects which have been subjected to in
dustrious rumor in the stock market
and the motives for some of the most
active advances and the largest specu-
lat1Ve buying have come into diStrust
and, in some cases, actual discredit with
ing the last few days.
An important instance Is the project
OF the purchase of ore lands held by the
Great Northern railroad company in the
interest of the United States Steel cor
poration. Inc accomplishment of this
project mas been accepted as a certainty.
although no authentic or official infor-
nation on its terms has ever been given
the public. Reports in the last two days
OF hitch In the negotiations have
fall through But the effect of these re-
ports upon the prices of stocks con-
cerned in the project discloses a realiza-
ton upon the part of the operators that
the price movements in them have been
( extravagant and beyond anything war
ranted by the promise of the actual ac-
The action of the copper and metal
stocks shows the results of similar con-
ditions in the speculation,
When the money supply grew restrict
1aH N hn
made to secure funds by speculative
holders of securities thus situated. it
was found that a keen discrimination
lending, money. The usual margins de-
manded upon the market value of Sc
curities in the amount of the loans were
was reported that such stocks were
thrown out as collateral altogether
The banking situation in New York is
due to the absorption of funds by sub
treasury appropriations alone since the
last bank statement amounting to more
tnani the surplus reserve of the banks
S5,125, 725. Interior centers also are with
drawing funds from New York
The course of the money market for
some time past has pointed to liquidation.
but speculative operators have ignored
II. The conditions. Of business and in
dustry which held the market within
the rate for call money. reached 125 per
cent was in prospect, while at the pres
ent time they are either current or in
retrospect with the suspicion engendered
in the speculative, that their Influence
had been more than discounted in the |
action of the market. The liquidation
seemed to have spent much of its force |
in the late dealings, but the nervous
fluctuations at the last were not far
from the--low level OF the day.
Losses in some of the stocks most Sc
verely affected ran to 10 and II points.
while the declines ranged very generally |
between l and 8 points.
Bonds We're weak Total sales, par
value, 81, $50. 600
vanced Ia per cent on call.