Los Angeles herald., 1906-08-09
Ru Associated Press.

By Associated Press.
NEW YORK, Aug. S.-The stock mar
ket developed quite positive reaction
airy tendency as the outcome of the
growing irregularity for several days
past. Mondays market was generally
strong but before yesterdays trading
was concluded ii became very clear
that an extensive distribution of stocks
which have showed the largest ad-
vances recently was being offered un-
der cover of the new strength in Penn
sylvania, The perception of this dis
tribution had an unsettling effect on
speculative sentiment today owing to
the fact that that sentiment is swayed
entirely by the supposed course of the
operations of capitalists of recognized
leadership and authority.
The speculative element has been
buying considerably in the belief that
they were doing as the leaders were
doing. The action of yesterdays mar
ket aroused the suspicion that buying
of stock involved the taking of hold
ings which the accredited holders of
sentiment were disposing of. This was
the prime consideration in the turn of
the market although some discussion
was published of the money outlook,
Industrial conditions and like general
considerations.
The considerations. however. were of
small consequence in comparison with
the effect produced by the report that
the president of the Great Northern
had returned to st. Paul instead of ar
irving, as expected, in New York to
effect a prompt completion of the dis
posal of the company's ore lands in the
United States steel corporation.
Another incident of like potency on
speculative sentiment although of un-
seeming Importance, was the announce
ment that the chairman of the st. Paul
would sail on vacation trip abroad
tomorrow. The absence of this official
was taken to mean that no immediate
action would be taken on the plan for
Arao afr1c "a Cf c
The sensitiveness to happenings of this
character is an indication of how large
a part unauthorized surmises have
played in much of the recent operations
in stocks, especially in the group most
affected by the realizing of today.
There was very active discussion of
the chances for avoiding money string
ency this fall. Much reassuring opin-
ion comes from influential banking
sources as to the likelihood of escap-
ing stringency.
An incident OF the day was the vio-
lent readjustment effected in the mar
ket price of the New York Central gem
eral mortgage 81 per cent bonds.
There was perpendicular drop of 3h
points to 80 on comparatively light
sales. The movement was attributed
to the dissolution of syndicate and
the distribution to its members of some
SO, ,000, 900 of the unsold bonds.
1t was believed that the new price
established allowed margin of profit
IN the nOldlnSS OF tine DOndS over the
terms at which they had been acquired
from the company. This bond never
sold lower than 95 previous to today.
In the downward movement of prices
Pennsylvania was the only stock to
show effective resistance. 1t was lifted
occasionally in the intervals of the
selling pressure to a level above last
night. The movement strved to re-
strain but not to prevent the downward
movement elsewhere which reached
gradually lower levels and closed easier
near the lowest
Bonds were heavy. Total sales, par
value, $2,070.000.
United States bonds were all un-
changed on call.