Los Angeles herald., 1906-05-03
BY Associated Press.

volume OF liquidation was effected in
the stock market today. The aggregate
Of the shares sold. while falling far, be
low the record of dealings at the New
York stock exchange, rose we'll over 2,00O,-
900 shares and made the day one of the
great ones in New York stock exchange
Very serious inroads upon prices were
caused by the violence of the liquidation
But toward the end of the day the market
showed evidence of the relief afforded
by the liquidation accomplished. 1t was
field day for the bears and they OPP
Grated with great boldness and on an
on fo ske scae prtn n day The hse Tae cns
of the day was an important factor in
the occasional rallies and in the later
tendency toward Improvement in the mar
ket.
In the heavy shrinkage in market valua-
tions gave rise to the inevitable reports
of money difficulties and added to the
uneasiness prevailing about the stock eX-
change. There was no confirmation of
Importance of these reports and their fail
IRE of verifcation helped to the rebound.
The extreme weakness shown during the
day was attributed to the operation of
the same causes which have been of ,ef-
feet for several weeks.
Strong Pools DisIodged
1t is generally accepted as fact that
very wealthy speculative operators and
powerful pools who had persisted in dis
ket, and in attempting to hold the mar
ketSby main force, were being forced from
their position and obliged to sell out
their huge holdings to obtain funds in
centers which had advanced money for
use in the speculative campaign. The
manner in which stocks were hurled into
the market and also of the individual
blocks traded in gave strong impress
sion of the dimensions of the speculative
interests which were being forced to sell.
Adoption of Bold Methods
There was not lacking the supposition,
however, that the operation might extend
not only to the selling out Of holdings
to extensive commitments on the short
side In the effort to recoup losses on the
long side according to the bold methods
usually pursued by the elements supposed
to be most largely concerned.
The money market continued tight and
the rate for call loans rose again to -
per cent Rates for time loans for all
periods up to six months were firmly held
at 6 per cent. Another days large clear
ances between the banks reflected further
financial operations in progress.
The outgo of currency to San Francisco,
although abated, has not ceased, and the
incoming special presidential message to
accompany the report of the Standard Oil
inquiry was made something Of.
Decrease in Earnings
Decreases in March net earnings by the
st. Louis. and the Denver & Rio Grande
companies made a disagreeable supple
ment to yesterdays similar showings by
st. Paul and Louisville & Nashville, not
withstanding the largely increased earn
ings reported by the Pennsylvania and
the Norfolk & Western.
Further large declines in the foreign
exchange rate indicated a continued call
for outside gold, but discounts hardened
the private rate in London, rising to a
level with the official rate of the Bank
OF England.
Foreign Influence Effective
In connection with the Improvement in
prices of the laLIer part Of the day 1t was
has taken over some heavy blocks of Sc
curlties either as collateral for adVan ces
or for outright purchase. The substantial
recovery of the latter part Of the day
left no adequate indication of the days
net price changes, or of the extreme de-
moralization that ruled in the market
about the middle of the session. At that
time, aside from Anaconda's 2O-point
slump there were such declines of 10S4
for Northern Pacific, 10 for Great North
ern preferred, z for National Lead, 81 for
Reading, AZ for Smelling, for Union Pa
cific, Locomotive and Republic Steel pre-
fcrred 4as for Louisville & Nashville. 8
3 points throughout the list.
The closing had a fair sprinkling of
gains which was substantial for st. Paul,
Brooklyn Transit, Canadian Pacific,
Atchison and Consolidated Gas. The
close. however, was unsteady with some
fresh relapses at a few points,
Bonds were weak. Total sales, par
United States bonds were all unchanged
on call.