Omaha daily bee., 1906-12-20
new YORK STOCKS NDBONDS
Violent spasm Of Liquidation Spreads
Over Market Early in Session.
DECLINE FOLLOWED BY RECOVERY
Confusion I'm So. Paul Continued
and IL Has Eject OF UnsettlinE
Entire List-CIOss f.
strong.

NEW YORK, Dec ia violent spasm
OF liquidation swept over the stock market
prices that looked threatening at one time.
A substantial recovery occurred before the
closing hour. The storm center was the
group of stocks which in the customary ez-
preston OF the stock market have en-
joyed rights" recently, a phrase which
operators in the stocks now use with an
ironical emphasis. The continued strin-
gency Of the money market and the failure
Of any appreciable relief from the opera
bS e9 81 di seo efect ON sentiment
The crumbling of the market at weak
spots spread to pretty much the whole
market, although there were few proml-
nent stocks which maintained show Of re-
sistance to the flood Of selling. The con-
fusion In the market for St. Paul con-
tinued and was an unsettling influence on
the whole market. The subscription rights
came on both classes Of the stock this
morning. The rights" were also admitted
to quotation on the Stock exchange Inc
opening price of St. Paul with the price
quoted for the rights added showed rise
Of 81a over yesterdays closing price. The
IN the stock was over was short
lived and it soon began to recede again
quotatio Of the rights helped clear up one
cause OF confusion by providing market
valuation for purposes of fixing collateral
in loans on st. Paul The suddenness
with which the books Of the company were
closed after the announcement OF subscrip-
lions rights and the call for hC,OOOOOO
Z
81 on the eve OF the yearly money settle
ments was the subject of some bitter criti-
. cism and professed fears Of hidden de-
sign to disturb the money market. The
pursuit of this line Of reasoning led to some
excited unloading of holdings on the part
Of spectators who had been convinced
that they were following the leadership in
the market of the most influential capital
lists In the country, who were banded to-
gether for mutual protection Of the specu-
lative position from harm from the money
situation. Professional traders were loud
in protestation Of q suspicion that the
ranged to cause a break in prices. There
was an extraordinary confusion and con-
! tradictlon also in the estimates OF the real
value of the rights which have been Of
| fered so abundantly in the last few days.
St. Paul, Northern Pacific and Great North
ern preferred still suffered acutely, there
fore, in the prevalent weakness. The high
priced stocks generally were sufferers In
| sympathy. There was an enormous spec
ulation in Reading and heavy selling when
change in the dividend rate, as predictions
had been confidently made of per cent
dividend rate for that stock.
The extent of the recovery from the ex-
| treme declines pointed strongly also TO
extensive operations b. bears.
The presence of the secretary of the
/ treasury in the city gave rise to conjec-
/ lures Of more substantial measures OF re-
lief for the money market, which contin-
ued very stringent both for call and time
! loans, Sterling exchange was very weak
! In response to the money StringenCy and
London showed keen apprehension of a
demand for gold on the part of New York
| New York bankers were inclined to the
! opinion that a demand In london for gold
would be iniudicious, as It was believed
| beyond doubt that the Bank OF England
would advance its discount rate tomorrow
should gold be taken from that market
| The news of the presence OF the secretary
of the treasury in Wall street came at a
| time when the liquidation had spent most
of It's force. The increase In the dividend
on Lehigh Valley also revived hopes which
proved fallaclous Of an advance in the
Reading rate. The covering by the shorts
became quite precipitate and worked a
material rally In the whole market. The
| closing was strong and showed a number
of substantial net gains, after level OF
prices at the low point ruling all the way
from 1 to points below last night
Bonds were weak. Total sales, par value
81 29S,O00 United States bonds were un.
| changed on call.
The following are the quotations on thu