Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-01-05
NEW YORK STOCKS AND BONDS
Sensational Prediction Of Panic by Jacob
h. sohiff Starts Liquidation.
CLOSE is WEAK AND DlsoRDERIY
Market Also Affected Adversely by
withdrawal OF Spectators Dis
Eusted with High Rates
"f Money.

NEW YORK, Jan. T. - Jacob H.. schiff.
head Of the influential banking firm of
Kuhn Loeb g. Co, sent a tremor through
the speculative fabric Of the stock market
today by his utterance Of the opinion that
unless something was done TO improve the
currency system OF this country there
would be a panic with which ali panlcs
| which have gone before would seem as
childs play. The sensational terms OF this
utterance and the bulletin form In which
the knowledge OF II first came to the stock
market precipitated heavy liquidation which
broke prices with some violence and caused
a weak and dsorderly closing. The violent
slump In Anaconda and Amalgamated Cop
per were of special influence in unsettiing
Previous to the appearance of the report
| OF Mr. Schif's remarks the market had
| fallen into condition OF dizziness and al
{ most OF neglect. The distinct progress to-
wards relaxation OF the money stringency
awakened little response in the speculation.
smallest total in many weeks past. Some
/ part OF this undoubtedly was due TO the
| fact of Interruptions Of wire communica-
| lions with outside cities by the storm dam
, age, especially to the south and west. Some
OF the Centers which have contributed
! large share to the recent speculative cam
/ paisn were thus cut off from communica-
! ton with the stock market. Stock exchange
commission houses are feeling the weight
| OF discomfort amongst customers more
portentous than has been known for many
Z years over the interest charges during De-
cember. There can be no doubt that there
/ have been extensive Withdrawals of specula-
| tive accounts during this week by operators
! disguised with the December interest rates
| Disappointment Is felt also over the small
! outside demand which has developed for
stocks There are growing doubts well
| OF the extent to which the relaxation in
the money market is likely to proceed The
. retention OF funds at this center is believed
to depend largely on the maintenance of at
tractive interest rates. The strong demand
for money is seen to be common at present
all over the world. Only high grade com
mercial paper sells. as low per cent in
the New York market and loans on time
for the shorter periods continue TO com
mand considerable premium.
In foreign markets as the release Of ac-
| cumulated funds proceeds through the an
nual settlements II becomes manifest that
measures will be sustained for mutual pro-
! lection against demands from one another.
Serious account evidently is taken of the
coming conference on Morocco and the re-
ports of extensive precautionary military
preparations induces some pause in specula-
ton to see the outcome more clearly. The
Paris market seems determined to mainta In
its unusually high level of bank reserves
and the Bank of England is reported to be
preparing to borrow money from the open
market with the purpose OF keeping up the
interest rate as protection against outside
demands. Very large repayments of call
loans were reported being made on the
stock exchange today and this had a
natural effect on easness of rates in this
department. The rates for time loans were
inclined to advance even up to the six
months period, showing some shifting OF
call loans into borrowings on time. The
hesitation reflected in the narrow huctu-
weakness of the close only after the ap-
pearance of the report of Mr.. Schif e
speech.
Bonds were irregular. Total sales, par
value. S2,010,000 United States old IS. cou-
pom. declined u per cent on call.