The Montgomery advertiser., 1906-03-01
THE STOCK MARKET
HEAVY LIQUIDATION AND VIOLENT
 DECLINES OCCUR.
No Developments in Conditions of Af- fairs te Account for the Btg Drop In the Value of
 Securities.

New York, Feb. 2S.--There were no developments in conditions of affairs today to account in any measure for the heavy liquidation and the viclenr declines in prices which occurred in the stock market. An active demand developed for money and there were considerable withdrawals of credit from the stock market. But 1t is not prob able that restrictions on credits were large enough to force in any proportion to the actual selling which occurred. The rise in money rates, however, and the selling which was induced proved amply sufficient to topple over mar ket which had become top-heavy and easily vulnerable by progressive prices % ruling S and the1 i1 means s sey which l have been employed to achieve that level A number of the projects which have been subject to industrious rumor tn the stock market and the motives for some of the most active advances and the largest speculative buying, have come into distrust and in some cases actual discredit within the last few weeks.
 An important instance is the project for the purchase of the ore lands held States Steel Corporation. The accom- plishment of this project has been &C., cepted as a certainty although no au- thentic or official information on It's terms have ever been given the pub lie. Reports in the last two days of hitch in the negotiations have aroused through but the effect of these reports | on the prices of stocks concerned in | the project disclosed realization on the part of the speculative ,SIS, operators ,.s | been extravagant and beyond anything l warranted by the promise of the actual ! accomplishment of the proposed pro- 1 jects.
 The action of the copper and metal | stocks shows the results of similar con- dltions In the speculation. The forma- Company and the taking over of the | opposition copper properties in Mon- tana in the interest of the Amalga- nised as inadequate grounds for the ex- tent of the speculative advances in the stocks concerned. Rumor has con as 9qsy n Srr frrbep sp | since the Montana settlement, and scepticism, over the grounds of these rumors has been gaining force, Simi- cited at various points in the list of I active securities. When the money l supply grew restricted today and active | efforts had to be made to secure funds by speculative holders of securities thus situated. 1t was found that keen discrimination was used against them as collateral for lending money. The vaalue of securities In the amount of l the loans were widely extended and | in some cases 1t was reported that such | stocks were thrown out as collateral | The banking situation in New York offered ample explanation for the ac- ton of funds by sub-treasury opera | tions alone since the last bank state- ment amounting to more than the sur last Saturday. which was s5. .i25.725. In- 1 terior centres are also withdrawing funds from New York. The requirements for March ist settlements necessltate [ ing of this demand on the restricted banking supplies left the stock market specuiators without means to hold their stocks. The only relief to be had
 The sharp yielding in the foreign ex- change market showed that some efrort was making in foreign money centres for accommodation. That it was not suf. ticient to carry thrl ugh the situation was amply evident from the result. The
 time past has pointed to thls outcome, but speculative operators have ignol ed it owing to confidence In the precedent
 of the market last December when.
 l25 per cent rate for call money failed
 to shake the market. The conditions of business industry which held the
 market at that time were in pros
 are either current or in retrospect
 with the suspicion engendered in the
 speculative mind that their influence
 had been more than discounted Tn 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
 in some of the stocks most severely af-
 fected ran to 10 and F points, while
 the declines ranged very generally be-
 Bonds were weak Total sales. par
 value, S2,630. .00O. United States 2s,
 registered, advanced 1-4 per cent on
 call. a~.: ;: ..:@