The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-05-22
BEAR ATTACK
UPON MARKET
Weakness Developed All Along
the Line and Prices Gener-
ally CrumbIed.
MONEY SUPPLY DOUBTFUL
NEW BOND ISSUES WILL HAVE
TO BE CHEAP.

New York. May 21-The weakness
which developed in the stock market to-
day came as rather a surprise to the fl
nancial community. Notwithstanding the
symptoms Of yielding yesterday The
source OF the extensive selling of stocks
was mysterious and the motives which
have accompanied the outpOuring, after
such period of Quiescence in the mar
ket as last week, was not clear, as no
immediate development in conditions was
known which would change the situation
50 abruptly, Surmise inclined to the
Interpretation that an aggressive bear
party had been organized TO attack the
market. This Interpretation of the day
movement was favored by the recent re-
turn to the financial district of individu-
ais who were credited with the leader
ship of the smashing campaign against
prices which eliminated in the March
panic, and who have been absent on long
vacations since that occurrence.
Action of the market for some time
past has been reflected by the entire
lack OF any absorptiVe demand for Sc
curfties. but occasional tentative opera
tons upon the short side OF the market
have been so little successful in dis
lodging large liquidation that a period of
dullness and neglect for stocks was an
ticipated, rather than any active selling
or buying. The more aggressive plans
upon the bear side have gained impetus
from the violent movements in the Whea.
market. The leaders of the bull specu-
lauon in wheat undoubtedly play a large
part in the bear movement in stocks.
There is additional incentive for the
bear movement in stocks from the re-
newal Of anxiety over the conditions of
capital supply. Lack Of support for some
of the stocks which are usually most
carefully guarded against declines by in
side interests. due to the fact of the
large commitments by those interests IN
new securities of the eOrnpanies-
stockholders stand committed for peri
odlcal installments of subscriptions on
new issues which have been offered 10
them on attractive terms and they have
no resources to buy offerings of their
own stocks in the open market Some
speculative buying of Union Pacific late
" was based upon the assumption that
the stock would be supported to facilI-
tate the sale OF the convertible bonds.
Instead of that. the bonds have declined
70 quotations below the price offered to
stockholders and spectators in their
stock have failed to find opportunity to
realize a profit.
Successive new offerings of securities
are made on such terms and offer such
A rate of return as to afford greater at
fractions than existing securities and thus
10 indicate that even at the low prices
recently prevailing quotations are out of
ilhe WIN the level OF attraction for in
vestment. Such scanty DEVELOPMENTS to-
day as offered any explanation of thu,
weakness of the market had to do most
~ with rumors of still further bond ana
these were denied, but without relieving
the depression of the stocks concerned,
The heavy liquidation in United States
steel was accompanied by such rumor,
which was repeatedly denied without re-
heving the stock from its depression
The fan in United States Steel had q
pronounced sympathetic effect upon the
whole list. American Smelling Union
Pacific and Brooklyn Transit were other
centers of depression, as was AmaIga-
mated Copper.
The money market was unruffied and
no action was taken towards export OF
gold. 1t was not until stocks had weak
ened effeetually that wheat becam,
strong again. The heavy liquidation Of
stocks which undoubtedly occurred
seemed TO be prompted by a gradual
accumulation of influences for some
time past. rather than any event which
has occurred recently. Short GOVERNS
caused some wide rallies, but the mar.
ket closed unsettled and feverish.
Bonds were fererish. Total sales, pal
value, s1,74O00
United States Is registered advanced 9
per cent on CALL