The Washington herald., 1907-08-20
STOCK PRICES SLUMP
Quotations Go Down After
Opening of Session.
TECHNICAL POSITION WEAK
UnmistakabIe Signs Of Liquidation
at some Points in Mnrket-An-
Gold for Export Is Not Lfkes-Dis-
count Rate May Be Raised to 5.

New York, Aug. 19,zAt the opening and
during the first hour OF business to-
day the market displayed considerable
strength. many of the active issues rising
several points above Saturdays closing
figures, but by noon the trading had
quieted down and the course of prices
had developed a reactionary tendency.
from which it did not recover up TO the
close.
Among the strongest features OF the
early trading were Great Northern.
New York Central. and Amalgamated
Copper, but in the case Of some of these.
especially Union Pacific, weakness sue
ceeded the early strength. this particular
stock closing not only below Saturdays s
final. but at a quotation lower than the
closing OF any previous day since the
midsummer decline began.
Opinions differed as 10 the reason for
the strength at the opening some brok-
ers attributing II TO the covering Of
shorts, while others took the ground that
IL arose from nothing more than a desire
OF the interests working for a decline 10
test the market and ascertain how much
stock there was. weekly held, that would
come out on a rally.
stock Forced Ont.
Such stock. il was assumed, could be
forced out by a decline, and the object of
the rally might have been 10 ascertain
the strength OF the technical position.
At all events, 1t showed that the tech
meal position was by no means strong,
so the operations TO bring about lower
prices, suspended on Saturday. were re-
newed with considerable effect
There were unmistakabIe signs of real
liquidation at some points in the market,
as, for instance, in Chicago. ST Paul. Mil
waukee. and Omaha. one of the inactive
railroad issues, which broke sharply on
the liquidation of a moderate line of
stock, and Distillers Securities. which
suffered a decline of 5lz points from the
opening. but afterward recovered more
than points Of its loss.
In the market as whole, the decline
in the afternoon seemed TO increase the
supply Of stock for sale, and final prices.
while as a rule above those AT the end
Of Saturdays session, were well under
the best of the day
Taft's Speech Discussed.
Forecasts of Secretary Tafts speech
were uniformly of an unfavorable char
acter. the general impression being that
there would be no modification Of the
present policy, toward corporations, and
that the best the street could hope for
was that no new forms Of aggression on
capital would be outlined.
The announcement of a provisional agree
ment of gold for export 10 Europe was
not liked, in view OF the strength of
the time money market, and while the
opinion was expressed by the interna-
tional bankers that London would not
draw much gold from this center, the
movements Of exchange between London
and Paris Indicated that the former city
was endeavoring 10 increase its stock Of
the metal by drawing from the same
quarter.
It was thought 10 be entirely probable
that the discount rate advanced 10 AZ
last week would be raised to 3 per cent
next Thursday
An interview alleged 10 have been given
out by 81 independent steel interest in
which il was stated that there was con
siderable falling off in business. had a
depressing effect on sentiment regarding
the iron and steel trade
Up TO the close of business, no news
had been received from Washington as
TO the outcome of the conference regard
ing the granting of immunity 10 the
Chicago and Alton for having supplied
the data on which basis the 81, coo, ,00C
fine imposed on the Standard Oil Com
pany by Judge Lands was established.