The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-08-08
WALL STREET NOTES
Two Sharp Breaks in Market
Prove Demoralizing.
RECALL DAYS OF BIG DECLINE
BROKERAGE Houses Specializing as to
Whether Liquidation Imported
Party and Henry c. Prick Reported
TO BE Unloading stock.

Party and Henry c. Prick Reported
to BE Unloading stock.
New York. Aug. IA sharp break In
the market on two occasions to-day was
demoralizing. because it followed good
big declines for two preceding days. The
effect was CUMULATIVE, and it began TO
be displayed, among other ways, IN a
nervous and feverish feeling analogous to
that shown on some of the big days Of
the big decline.
In important brokerage houses there
was revived the question, uttered fire.
quently last March. as to whether or not
the liquidation imported trouble. The
| suggestion was inevitable that many who
/ barely saved themselves in the big de-
cline, and had since entered the market
again, might again be In difficulties, with
several active speculative shares selling
below the low prices OF the March de-
| cline But as in the demoralized trading
| in March, the quotations alone aroused
the suggestion.
Apart from these. there was no indiCa-
ton, either in fact or ruonor, Of any i'm
| pending trouble. and this absence Of fail
ure rumOrs was the more impressive. be-
cause professional traders were bearish al
most 10 a man The margin clerks IN
| the brokerage offices thumbed the ac-
counts pages nervously and rapidly az
about / O'Clock Previously the market
after a hard opening and brisk advance
on short-covering. had begun to grow dull
and sag again.
A little before l o'clock there was n
sudden outbreak of activity and an o1rer-
| ing of stocks on very large scale. The
stocks were put on market weakened
! by a large amount of bear realizing and
unable TO absorb them readily. Trading
/ became more nervous and the market
more demoralized than on any previous
time during the decline. Reading for in
stance, broke full point on four sue
! cessive sales, aggregating about 2,1O0
! shares.
/ Fluctuations of II point between sales
were quite general and cs 1-2 point quite
4 frequent Brokers with the experience Of
the March decline fresh IN mind, threw
over many weakly margined accounts and
/ set other customers at work writing out
checks. Orders not protected by excep-
I tionally ample margins We're, in most
/ cases, refused.
/ Following the break in the early after
noon the market again became dull until
- o'clock. when there ensued an interval
/ OF topping prices SURPRISING the other
/ IN the extent Of the declines and the
/ feverish activity Of the trading. The
losses Of the day were thus brought about
I priE&ipally Ia two very short periods Of
/ time. They gave the appearance of sharp
/ and concerted professional attacks on the
general list. and the magnitude of the
/ trading indicated that the bears were i'm
/ portant operators with money and nerve
/ in abundant supply Talk naturally re-
] CURED 10 some Of the names often heard
during the March decline.
The news bulletins and the near news
bulletins Wed with each other In re-
/ ports that the Standard oil party and
Henry c -Frick were unloading stocks
/ The reports were persistent and were ac-
/ cepted by many traders as probable. II
/ not authentic. In banking circles, where
/ information OF such liquidation would be
known in all probability. the reports were
completely discredited
/ There was no selling. it was said in
/ these and other weIl-informed quarters,
on the part OF the big holders Of stocks
Whatever liquidation there was. it was
/ insisted, was for the account Of weak or
/ frightened holders. and for an occasional
small investor The balance Of the sell
/ ing, as was indicated. quite clearly by
the tape. was by an aggressive and con-
fident bear party and its following
/ Odd lot transactions comprised a larger
proportion Of the total than on previous
days They were welcomed at first as
indicating investment buying. but there
/ spread an impression later that they rep
resented investment selling. Undoubtedly
the latter was the correct Interpretation
Of the odd lot transactions, for the second
1 day particularly plentiful, in Inter
| borough-MetrCpoIitan preferred. The
manner Of accounting for the remainder
was considered in some quarters de-
batable. Yet selling. rather than buying
| by investors. was considered the correct
answer by the majority.
Those who took the other position found
/ it difficult TO explain what recent develop
ment has put heart into the investor and
| left unanswered the point that the anti
corporation proceedings of the week. com
bined with the decline toward the March
/ level, might naturally affect the sale of
stocks purchased in the big decline.
Banking, as well rs brokerage houses.
were led by the sharpness of the breaks TO
! inspect margins with unusual care. There
was much calling of loans. and as a result
some little. at least. throwing of collateral
on the market In view of this and other
| hquidations it was considered extra
ordinary that call rates should advance
very sharply with per cent rate pre-
vailing in the late trading.
That the amount OF money in the hands
Of lenders was the greatest while rates
were highest must be explained. it was
remarked largely or the theory of alarm
among those loaning surplus funds. \
contributory cause may have been an
increase of activity in the time money
market. For time funds there was an in
creasing demand with the result that 6 per
cent was freely offered for four months
and a few loans were made at the Same
rate for ninety days.
NEW YORK MONEY.