Los Angeles herald., 1907-03-19
STOCK MARKET
STILL FEVERISH
NO CONFIDENCE IN RECENT
RECOVERY
Belief ls Strong That Conditions In
Wall Street Soon VIII Become
Normal - Review of
the Situation
BY Associated Press.

by Associated Press.
NEW YORK, March 18.-There was a
marked abatement OF excitement in the
dealings in stocks today from the
enormous transactions and wild price
fluctuations of last week. The price
movement still showed a degree of
teVerishness that was the after effect
OF last weeks turbulent market, but
the reduction In the volume of the
days sales Is conclusive evidence Of
the settling back of the market into
more normal conditions So also was
the check to the headlong advancing
tendency of Saturday which was wholly
due to the distress of bear operators
who had continued to sell stocks short
recklessly down to the lowest depths of
thursdays plunge and who were com
PEELED to buy to cover on Saturday by
the volatile recovery
The very violence of the recovery
gave warning of its unreliable nature
and speculative sentiment was quite
prepared for q check and a reacHon to-
day. III fact the London market had
already anticipated this course before
trading began here and sent over
materially lower range of prices than
the closing here. The drop III the
opening dealings here was wider than
anticipated and had the effect of re-
ViVing some Of the excitement which
prevailed last week. But it appeared
that the wider fluctuations were large
ly due to the plunging operations of q
professional element which had become
habitated to free action by last weeks
experience. Effective support appeared
in the market and the proceedings then
We're much quieter and more orderly,
although the renewed weakness of the
later market made the lowest prices OF
the day.
The market continued to show the
normal effects following such price
contortions as those of last week That
is, it showed the lack of the large
demand from shorts which was
squeezed into covering in Saturdays
market and felt the effects of reselling
to take profits by those who secured
stocks in Thursdays slump or who had
bought on Friday merely for the pur-
pose of supporting prices and averting
what threatened to become a disaster
to the market. The diminishing activ-
ity of the market indicated the dispo-
sition to pause after the severe expert.
ence of last week and take stock of
conditions and of promise before en-
tering again upon large operations In
stocks
General information as to the causes
and the sources of the unloading which
produced the CONFUSION in the market
clusions, however. find warranted ac-
ceptance. The extent of the liquida-
tion must have gone far to cure the
trouble, whatever it was.
1t is granted also that the invest
ment demand uncovered by the extent
of the decline must have largely re-
duced the floating supply of stocks in
the market. Not only was the absorp-
tiOn by private investors very large,
but investment institutions are believed
to have taken advantage of the oppor-
tunity to extend their holdings of Sc
curities at an attractive rate of return.
Confidence is felt also that the reduc-
tion of credits affected will afford avail
able resources for the better digestion
of some of the new capital issues
which had become glut on the mar
ket, obstructing it's channels against
the movement of other desired issues.
The money market showed the effect
of the passing of March Is settlements,
and it's greater ease conduced to recov-
cry in foreign exchange. The Bank of
England, however. had to advance it's
bid again to secure the supply of gold
in the market.
Railway traffic reports offered no
trace of reactionary tendency in busi
ness, which the stock market slump
has increased the watchfulness for.
The last prices showed substantial
losses from Saturdays closing level.
Bonds were irregular. Total sales,
par value, $2,610,000.
United States bonds were unchanged
on call.