The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-04-29
tSTOCKS DUMPED
BY WHOLESALE
Sudden Contraction in Value of
Securities and Shrinking
of Collateral.
BEARS IN THEIR ELEMENT
SAN FRANCISCO DISASTER THE
CAUSE.

New York, April 2s.-Heavy liquidation
continued in the stock market today
without any new development in the sit
uatiOn. The violent decline in prices for
the last two days brought additions to
the flood on the market by the wipinS
out of margins. uncovering of stOp-loss
orders, shrinking of collateral and all
the other natural consequences of sud
den contraction in the market valuation
of securities. The bears were in their
element and Of course were not idle. A
remarkable feature Of the market was
its calmness in the early part of the seS-
sion when selling was comparatively
he easily effective. Such a drop IN
prices IS that of yesterday usually has
burdens on the market Immediately FOL
lOwing.s owing to impaired margins
which have not been made good over
night und the natural unsettllng erect
upon sentiment Of a day of demoraliza-
ton such as yesterday. Sales of this
character seemed to be withheld from the
market when trade first began The fact
that loans made on Friday at the STOCK
exchange carry over until MONDAY may
have exempted speculative holders from
some immediate pressure to close out.
But before the session was over stocks
poured out from every direction and
were thrown over on swiftly declining
range of prices sales either being forced
or the sellers determined to get out, at
the prevailing prices in the fear that
worse was to follow.
The level touched was materially lower
than the low point of YESTERDAY SuGh
exceptions to the weakness North
western, Consolidated Gas and Hooking
Valley had no effect in mitigating the
gloom that prevailed in all speculative
quarters. The bank statement made a
showing wide of all calculations and so
many composites entered into the
weeks market that no one attempted 70
explain discrepancies. The coal strike
prospect was an aggraVating factor In
spite of some demand to cover shorts by
bears many active stocks closed near the
lowest and net losses running from 10 I
points were general through the list. The
closing tone was active and weak
Total sales OF bonds, par value, 81
Review of the Week.
The process of absorption of the shock
OF the San Francisco disaster has been
going forward all the week in the flnan-
cial markets of the whole world. Much
has been accomplished and the sum total
Of the necessary measures of adjustment
to the altered conditions by that much
+ reduced. But the opinion remains unde-
ltfined or vaguely defined as to how much
pletiOn of the task. Speculative Sent1-
Nment over the outlook il the money AND
much unsettled and the operators in
stocks are disinclined to take a posi-
in the market. When they do they are
easily dislOdged and disposed TO retire
and wait a clearer outlook New York
financial institutions have born large
part of the burden of the adjustment 10
the San Francisco losses, owing to the
extent to which financial operations of
the country center here as the clearing
house Of the cOuntrys banking system
Direct Withdrawals of cash from New
York for shipment to the Pacific coast
have been an enormous scale. New
York. in response to the pressure, mas
withdraw n gold from London and Paris
As the result of pressure. prices or
stocks have been forced to the lowest OF
the year. representing heavy declines
from the high level Some OF the Hqu1da-
ton has been traceable directly TO the
fire insurance companies. which are
forced 10 realize on their treasury assets
20 prepare for meeting the fire losses.
High-grade divideud-paying stocks of an
investment character and bonds of a class
10 which corporation investment Is large
~ confined naturally have suffered most
from this kind of liquidation. But the
more speculative securities have not Deen
exempt
The inroad upon bank reserves has had
its inevitable effect on the money mar
lset The needs of the great insurance
companies offer the alternative OF HQui-
dation of securities or borrowing on the
collateral of their security holdings 10 de-
fer the necessity of foundations Either
expedient is calculated to have p dis
cOl1ra g-ing effect on speculative activity IN
stocks. The necessity is recognized of
time and patience in choice Of a large
volume of mercantile credits involved in
sible opportunity for saving those that
are redeemable at all Large new cap
ital outlay for the restoration of the
ruined city will constitute a demand
whose extent and duration are vaguely
undeTS TODD.
Bonds have been unsettled in sym
pathv with stocks United States old IS
declined II. the - i. the new Is regis
istered II and the new Is COUPON 4 per
cent on call on the week