Los Angeles herald., 1907-03-26
BY Associated Press.

NEW YORK, March 25.-Todays
stock market defies any clear analysis
The surface facts upon which there is
no room for dispute are that there was
unbridled impulse to sell securities and
an almost entire paralysis of demand
The consequences to prices were such
as might be imagined.
Inat any urgent necessity was fore
ing holders of securities to part with
them did not appear from any facts
known to the public. The banks were
not calling loans and the withdrawal Of
credits by money lenders could not be
ascrlbed as an impelling cause of the
slump. OF course the violent decline
and the shrinkage in collateral caused
a read1uStment constantly of loans and
this shrinkage of course forced vluner-
able holdings upon the market in the
course of the fall. But stringency of
money money was not the primary cause in
So far as the dread of failures at the
coming stock settlements in London
and Berlin was concerned, the situa-
tion was admittedly improved over last
week. Early prices of stocks reported
from London showed some violent re-
pounds from Saturdays closing level
here and Berlin was. reported to be buy
ing American securities in London.
Reassuring advices from the highest
quarters in the financial world were re-
ceived as to the conditions. Berlin was
said to have completed necessary ar
rangements for the approaching settle
ment which had been the dreaded point.
Rumors of an important house in Lon
don being in financial difficulties were
full investigation. Large orders were
expected in this market to buy stocks
for foreign account, but with hardly
more than momentary effect on the
prices.
The large speculation in copper Sc
curities IN this market had been based
upon confident assumption of sound
conditions in the metal market. This
confidence was shaken and the metal
industrials proved extremely vulnerable
as consequence, including. United
States Steel stocks. Large pooled hold
ings of these securities were believed to
be touched by the demoralized declines:
Holders of Amalgamated Copper and of
United States Steel seemed to be sud-
denly awakened to the recollection of
past performances in those securities
following the quick Transformation
their trades to acute depression and
rapid shrinkage of earnings.
The operations of the bear contingent
in the market are believed to have
taken on the greatest proportions.
The short side in at least one instance
was believed to be of prodigious pro-
portions. The operations seemed to be
entirely unopposed on behalf of the con-
trollers here on outsiders in any prop
erty. shrinkage feature of the situa-
tion seemed to be the consensus among
the larger interests that supporting
measures would be futile to check the
selling frenzy.
Engagements of gold in London for
import and additional latitude allowed
by the secretary of the treasury in the
securities for government deposits, al
though promising to help the money
market were entirely ignored. Inhuen-
tial men in the banking world did not
hesitate to characterize the selling as
prompted by '1nsane fear" Informa-
tion from commission houses of the
terms in which some of the selling or
ders were couched have given color to
these characterizations. Fears of a
coming prostration of business or the
stripping OF powers of management and
control from corporations were alleged
as principal grounds for the alarm.
The closing reflected nervous feeling
among the shorts in the feverish re-
bounds caused by their rush to take
profits.
Bonds were weak but not notably ac-
tive. Total sales. par value, $3.392, 900.
United States bonds were unchanged
on call.