Los Angeles herald., 1907-08-19
WALL STREET is WORRIED;
STOCKS STILL ON DECLINE
By Associated Press.

By Associated Press.
NEW YORK, Aug. 1S.-The decline in
prices which has been in progress for
some time continued during the past
week with many securities reaching the
lowest quotations in years.
Successive waves of liquidation during
the last few months have swept away the
profits of years and have made the stock
market extremely sensitive and vulner-
able. The contributing causes of the
situation have been and are the fears of
further restrictive campaign against COR
porations by the next congress and the
legislatures of various states. Higher
rates of money with reduced supply of
available funds, apparent Indifference to
the decline In stock prices on the part of
interests with large capital investments
at stake, visible signs of weak spots in
trade situation and monetary conditions
that preclude any hope of immediate aid
from Europe for American business en-
terprises or stock market operations.
The weeR began with the market under
cloud Liquidation had not run its
course even after the ten and fifteen
points decline of the preceding week, the
heavy reduction In loans the previous
Saturday hardly compensated for the
large loss in cash and with another gov
ernment report on the Standard Oil COM
pany published Monday, Wall street be-
gan the week nervous and apprehensive.
Combined with this were the express
sions of a cabinet member concerning the
proposed prosecution of corporation man
ayers who violate the law. As result
holders of securities did not know how
long their shares would be immune from
attack Fears of further proceedings
against corporations made the capitalists
back of them Indifferent as to the out
come and it was obvious that they were
giving no support to the market.
Strike Causes Annoyance
The strike of the telegraph operators
while not very disturbing to business.
caused annoyance and the most was made
of it as an unfavorable incident. More
legitimate, however, as ammunition for
lower prices was the failure of the Pope
Manufacturing company and the appre-
hension created of similar embarrassment
in other quarters.
An example OF the state of the money
market is given by the fact that the Con-
solidated Gas company. which is domi-
mated by Standard Oil interests. was
forced to borrow on one year notes at
per cent. A large amount of money was
loaned for six months at Z per cent.
Commercial paper seems to be discount
ing slowly and the banks reported many
clients who seldom came to them for ac-
commodations, forced to borrow because
QeAAC@
cali loans were surprisingly low, but this
reflected merely the desire of lenders to
keep their capital in hand. The shrink
age in stocks has been sufficient TO allow
income yields to keep pace with prevailing
interest rates. Many substantial prop
critics sold during the past week from
s15. .OOO0 900 to So. 100000 less in market value
than on the 1st of August. and prime
railroad stocks at present dividend rates.
have begun to return investors from 6
to- per cent, whereas they offered
yield Of but 4 to per cent not so many
months ago.
Duplicated Abroad
Domestic money conditions have been
somewhat duplicated abroad, the most
striking example of this being afforded by
the Bank of England's action in raising
it's official rate to Az per cent This was
more remarkable in view of the fact that
CContinued on Paxe Two.l