Los Angeles herald., 1907-03-28
STOCK OPERATORS
MOVE CAUTIOUSLY
RAILWAY SECURITIES STILL
UNDER PRESSURE
Action Of the Treasury Gives Notices
able Relief to the Money Market.
Traders Sell Literally
for Profits
BY Associated Press.


NEW YORK, March 21.-Tho action
OF today's stock market served as an
admonition to many to guard against
too eXuberant fancies about the un-
reality of the recent feverish expert
ences which the market has undergone.
The early spurt in prices, which added
to points to the recoveries of three
to over seven points in yesterdays
market, had the decided effect of cut
ting down the buying demand With
this sustaining force at the higher level
there was a backward drift which did
not leave much Of the fairly sensa-
tional advance in the early part Of the
day.
There was nothing in the days news
to discredit the information which
helped yesterdays improvement in sen
timent. The improved conditions were
recognized and the convictions still held
that the extensive decline in prices had
gone far to measure the unfaVorablc
factors in the situation which had
caused it. But the violence of the re-
covery was regarded as taking prices
too rapidly away from the proper ad-
justment though the process of ad-
tustment had been somewhat overdone
in the decline.
The positive weakness OF several
securities was an active factor m curb
ing the precipitancy of the early al =.
vance. The unsupported condition OF
the Erie in the wide decline to leVel
materially lower than was touched IN
the weaker period of the recent selling
gave clear evidence of further lqui-
dation. The usual sympathetic effect
was produced on other Morgan stocks,
especially Southern Railway. for which
conditions of credit and capital needs
are most nearly analogous to those Oh
Erie.
The United States steel stocks were
also affected. seemingly in sympathy.
Tho companion weakness of Pennsyl-
Vania was not so clearly sympathetic,
the drastic provisions of the proposed
railroad commission law pending IN inc
New Jersey Legislature. Reports OF
measures for railroad regulation by
other state legislatures also served TO
keep alive the scnsitiveness of the
financial district to this feature of the
activities of the times.
The money market showed palpable
relief. which was attributed to the
measures adopted by the United states
treasury department. Tho extent or
the. relief which was expressed in the
decline in interest rates left. some
rather disquieting deductions OF what
the situation must have been WITHOUT
tho effective relief thus afforded. The
an earnest determination of the, new
head of the department to afford any
relief actually called for by the situa-
ton. Not only in the disposal of the
also in the supervisory activities of the
controllers office has there been. SUBJ
iect for supposed solicitude by bank
ing authorities over possible adoption
of new policies by the treasury de-
partment.
The question was discussed in some
quarters of the market today as to how
far the recent Developments in the
credit situation might have been
prompted by arrangements to conform
to q stricter Interpretation of require
ments of the national banking act than
has been insisted on in times past.
The profit taking which could be
done to advantage at today's higher
prices was increased by the belief that
the stock exchange authorities would
decide to close the exchange from
Thursday until the following Monday.
The days net changes are mostly
small and mingled gains and losses and
the closing tone was quite irregular.
Bonds were irregular. Active bonds
were firm but in other issues small lots
were marketed only at wide conces-
sions from previous prices.
Total sales. par value, $2552,000.
United States bonds were unchanged
on call.