Los Angeles herald., 1907-05-22
STOCK MARKET
IS NOW WEAK
EXTENSIVE SALES SEND THE
FIGURES DOWN
Believed That Large Bear Party Has
Been Formed to Make an
Attack-Bonds
Firm
By Associated Press.

NEW YORK, May 21.-The weakness
which developed in the stock market TO-
day came rather as surprise to the
financial community, notwithstanding the
symptoms of yielding yesterday. inc
source of the extensive selling OF STOCKS
was mysterious and the motives which
have accompanied the outpouring, after
such a period of quiesscence in the mar
ket as that of last week, was not clear, as
no immediate development In condltlonS
was known which would change the STU
surmise inclined to the Interpretation
that an aggressive bear party mad pecn
organized to attack the market. rms ltl-
depreciation. of the days moVemeht was was
favored by the recent return to the hnan-
cial district of individuals who were cred
tied with the leadership of the Smashing
campaign, against prices which cuimlm, ii1
ated in the March panic and who nave
been absent on long vacations since tnat
occurrence. The action of the market Ior
some time past has been reflected py the
entire lack of any absorptive demand 1or
securities, but occasional tentative opera
tons upon the short side of the market
have been so little successful In dlsIodg-
ing large liqlridat ton that period OF dull
ness and neglect for stocks was antici-
pated, rather than any active selling or
buying
The more aggressive plans upon the
bear side have gained impetus from the
violent movements in the wheat market.
The leaders of the bull speculation in
wheat undoubtedly play a large part part IN IN
the bear movement in stocks. There is
additional incentive for the bear move
ment in stocks from the renewal of anXi-
ETY. over the conditions of capital supply.
Lack of support for some of the stocks
which are usually most carefully guarded
against declines by inside interests, due
to the fact of the large commitments by
those interests in new securities OF the
companies.
Stockholders stand for periodical INSTALL
ments of subscriptions on new issues
tractive prices, and they have no re-
sources to bury offerings of their own
stocks in the open market. Some specu-
based upon the assumption that the stock
would be supported to facilitate the sale
TO The convertible bonds. Instead of that
the bonds have declined to quotations
below the price offered to stockholders
and spectators in their stock have failed
to find oportunity to realize a profit.
Successive offerings are made of good Sc
curities at such prices as to afford greater
attractions than existing securities and
thus to indicate that even at the low
prices recently prevailing quotations are
cut of line with the level of attraction
for investment.
Those scanty developments today Of
'fered explana ton of the weakness of the
market had to do mostly with rumors of
still further bond and note issues to
he executed.
Some of these were denied, but without
renewing the depression or the stocks
concerned. The heavy liquidation in United
States Steel was accompanied by such
rumor, which was repeatedly denied with
cut relieving the stock. from it's depres-
sion. The fall in United States Steel had
pronounced sympathetic effect upon the
whole list: American Smelling, Union
centers of depression. as was Amalga-
| mated Copper. The money market was
unruffled and no action was taken toward
| export of gold. 1t was not until stocks
had weakened effectually that wheat be-
came strong again.
The heavy liquidation of stocks which
prompted by a gradual accumulation of
Influences for. some time past rather than
any event which has occurred recently
Short covering caused some wide rallies,
but the market closed unsettled and few
erish.
Bonds were firm.
Total sales, par value, $1174,00O.
U. s. bonds Is, registered, advanced q
per cent on CALL 20