The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1907-03-23
STOCK MARKET Is
AGAIN VERY WEAK
Break Through Low Level of
Last Weeks Panic
ERIES LEAD IN THE DROP
Another Dominant Factor Is the Fear
of Consequences of the Bank of
France Advance In the
Discount Rate.
ERIES LEAD IN THE DROP

New York, March 22-The stock market
turned very weak again. today. Some Of
the stocks which were under special
pressure broke through the low level
reached in the panic .last week. This was
notably true to the Eries, and the weak
ness of those stocks was of large sympa-
theto effect on the whole list.
The other dominant factor In the mar
ket was the consequences feared from
the advance yesterday on the Bank of
France discount rate The aggravating
cause of the weakness of the Fries was
clearly enough the announcement of the
management to abandon projected bet
terments in the state of New York from
fear of the interference with the intended
methods of financing the work by the
proposed state legislation for control of
public utilities Back of this open expla-
nation there were current many rumors
of internal dissenslon In the company,
and of disappointment with the results
of improvements already made The bears
in fact operated in the securities of the
company very freely and boldly. They
were not opposed, however, by any pro-
tective measures for the securities in the
market. The attitude of friendship of
controllers of the property had dis
couraging effect on any views faYoring
an advance in prices. Instead of the turn
against the supposed large outstanding
short interests which was talked of dur
ing the hardening period of prices yester-
day, the bears undertook fresh operations
On large scale and had good success in
precipitating fresh liquidation in various
quarters Of the list. The Morgan group
WAS .aSpppiallV n Effected when the entire
lack of support in the Fries was perceived
The weakness spread to Southern railway
and the whole southern railroad group.
The Hills and Harrimans also were ACUTE
ly affected, and had the unusual effect
of dragging down st. Paul, Atchison and
Reading.
United States steel was heavily Sold
but on narrower price range than the
low priced stocks. The effect of the ad-
vance in the Bank of France rate was
heightened by reports from Paris that a
further rise was expected next week. The
action is directed against a movement of
gold TO London and also 10 Berlin.
Its special interest to New York is that
payment for participation In note issues of
American railroads is supposed to be in-
NolVed in both these movements. This
movement of capital out of France is evil
IDENTIFY intensified by the wide discrepancy
between the ruling interest rates in Paris
and the rate of return on these high grade
note issues. The Bank of France under
these circumstances evidently finds it I'M
wise TO persist in contemplating home
interest rates, so far out of line with the
world average, even with the advantage
considered of stability ~ the monev mar
ket f9r business and trade. Il is.aFraaa,,-
milton OF Tie universal rise In ntohey
rates that the action Of tho french banks
Is regarded as important, rather than
from any Likelihood of banking reserves in
other banhlng centers being affected.
Cables from London reported some anx-
Icy there. regarding the outcome of the
stock market settlement next week Pre-
liuinary estimates of the weeks currency
movement indicates an increase of VI
wards of S6,000o00 in cash holdings of the
banks. 1t is expected also that the dras-
tie market liquidation Of last week. as it
came late in the week, will affect the
averages of the loan account this week
as much as last. A strong bank state
ment is thus indicated.
The market closed weak and around the
low point at severe declines, the effect of
the break in the Fries being aggravated
by the slump in Canadian Pacific.
Bonds We're irregular. Total sales. par
value. Sl,792O00.
United States IS registered declined Va
the old As Va, and the new As 1s higher on
call.