The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-04-27
LIQUIDATION IN
STOCK MARKET
Some Damage Resulted to
Prices Owing to Problem
Raised by Calamity.
SELLING MOVEMENT EARLY
BETTER FEELING TOWARD THE
CLOSE.

New York, April 26.-The stock market
was subjected to further drastic Iiquida-
uon today with damage resulting to
prices This outbreak Of weakness mere
ly represented the working out of the
problem thrown upon the financial world
oy the San Francisco calamity Selling
was clearly in evidence for direct ac-
count of some of the insurance companies
Stock certificates in the names of these
companies were delivered at the stock eX-
CHdhSe ana the selling of these was on
orders from some of the principal bank
ing houses. This gave rise to natural
conJectureS as to whether the iuSura nce
companies were simply empIovinp the
banking houses in a brokerage capacity
70 effect the sales of securities out of
had figured as a collateral for loans bV
Ihe banks who were ltquidating the col
lateraI owing to the shrinkage in values
ana the wIplng out of margins
Inc sentimental effect OF this selling
was Dad IN any event and had a decidedly
depressing effect on speculative sentiment
throughout the street. The Shrinkage in
values also brought out large sales for
account or some of the great commission
houses ana this attributed to the letting
50 OF some speculative accounts. Selling
of this character from western sources
Was particularly marked and had the ap-
pearance of being presumably owing TO
the wlping out of margins
Earnest assurances have been heard for
some time from some prominent specuIa-
sion houses had become pra cticaHy bare
OF stocks. This was evidently meant to
IMPLY that speculative accounts on the
l0nS SIDE had been greatly reduced and
that investment buying of a more sinh
Stantldl character had been taking stocks
out of the market. The amount of long
stocks which came out TODAY i'm specuIa
tive dealing was a surprise and thorough
" discreditS the assurances. The move
ment OF currency to San Francisco con-
tinued today on e very heavy scale, trans
ferS through the sub-treasury having
amounted to over $1,000. coo before - o. clock
engagement Was made during the day of
$4OOO,OO0 gold for import most of which
was secured in Paris. The decidedly weak
return OF the Bank of England explained
the unWllhngness of the London market
TO part with gold. The banks holding of
bullion fell for the week nearly So. 500 COO
H'dll inc lo an expanded in the neigh
Dorhood OF S30OO0.O0O, thus bringing the
proportion of reserves to liabilities to be-
low the traditional line of safety at ~
per cent The retention of the Official
discount rate at So per cent with the
private rate fully up to that level made
II certain that heavy resort will be made
10 the bank by the market while this con-
dition continues. Consolidated Gas stead
led Up on the announcement of a red1rc-
tIon IN It's dividend to a 4 per cent basis
after a long period Of decline in eXpecta-
ton of this action. High-grade invest
ment stocks are specially affected by the
days selling. Bear operator were "a ger
sellers on the declines and their buvinF
70 cover shorts was responsible for occa-
sional rallies.
Little support was accorded the market
while the liquidation seemed to be forced
but with the lull in the selling pressure
measures were taken to effect some res
torat1on of the days losses. The demand
was languid at the recovery until the an
nouncement just before the close of large
engagements of gold for import This
leading as at other times during the daV
and the close was generally firm.
Bonds were weak, Total sales, par Value
s., 10000. United States bonds were ali
unchanged on call.