Los Angeles herald., 1907-03-09
NO FEAR OF PANIC
IN WALL STREET
CONDITIONS NOW ARE INVITING
FOR INVESTORS
Utteranees Of Hartman Cause Sharp
Drive Against Steel Securities.
Bank Statement Indicates
Loss in Cash
BY Associated Press.

bN Associated Press.
NEW YORK. March S-There was fur
ther drastic liquidation in the stock mar
ket today and periods Of extreme weak
ness, during which prices plunged down
ward to a level in many cases lower thar
for several days past At the same time
there was evidence from time to time
OF absorption OF stocks Of a Kind to In
dicate that prices have fallen TO q leveI
where some demand Is attracted of an In
vestment or semi-investment character
There have been more bargains In bid
ding In small lots all through the week
decline. such as Is taken out Of the mar
ket to hold for an investment return.
But buying attracted by the investment
return or of a marginal character has
been slower Of development. There has
been a notable lack also Of buying by
banking and other large financial instl-
tutions for purposes Of support.
The opening break in prices today did
develop in buying Of this kind and the
perception of It was a prime factor in
turning the bears to cover and affecting
the following material recovery rally.
The bears proved in the later market that
they had not exhausted their ammunition.
This did not prevent growth of opinion,
however. that the period of active liqui-
dation was approaching its term.
Sentiment was much less easy today,
even during the early break than taken
for some time past and the confidence
was more general that the liquidation
would run its course without panic or dis
aster. The week has been free, in fact,
from rumors of financial embarrassment.
although the extent Of the decline makes
the fact of enormous losses having oc-
CURED a matter of course. The convic-
tion remains general that these have
fallen generally upon the millionaire class
and among those who could shoulder the
burden without ruinous consequences. 1t
Is this conviction which gives the present
decline the name of the rich man
panic among professional operators.
Yesterdays weak closing paved the way
for the flood of selling orders under which
the market was swamped at the opening.
Gloomy sentiment was accentuated by
the discouraging views upon the indus
trial outlook expressed by e. II. Harri-
man in one of the various interviews with
him which spread this morning. His as
snrtion that if orders on hand with the
United States Steel corporation were not
subject to cancellation their completion
would develop the lack of demand. was
the occasion for the special drive against
the securities of the corporation. The
severe decline in those stocks was of sub
stantial effect on sentiment. Union Pacific
also responded to the pessmistc utter
ances of its president with a material ad-
dition to the reduction in the price caused
by the per cent dividend coming off.
The persistent absorption of Reading
and the support of it was a factor in
keeping the bears uneasy and i'm induc-
ing the extensive covering movement of
the day. There was good accumulation
also of the group of Morgan stocks. which
broke violently yesterday, and Southern
Railway preferred rebounded violently
when it became known that the dividend
rate was maintained This checked mo-
mentarily the decline in the general mar
ket, which was resumed with the attacks
on United States Steel.
The drop in, prices was much the same
as that of yesterday and the closing tone
was decidedly weak. News was little re-
garded in the days movement and very
little of Importance came to hand
The indicated loss in cash by the banks
for the week pointed to some subsistence
to the flow of currency into the interior
and exchange at Chicago rose from 25c to
15c discount today.
Bonds were weak. Total sales par value
81 1.736,0O0
call.