The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1907-03-14


SeIing-Gradual Decline Then
PrecIpitates Break-Rally
and Final Slump.
New York, 1arch 13-The most sem
sational decline in prices for several years
occurred on the stock market today.
Except that money rates were higher.
and that the tone on the foreign ex-
changes was unfavorable, there was no
news to account for the break in prices.
The market opened weak under the in
fluence of lower prices for americans
abroad and the drop in consols to the
lowest price since 1886. At first the down.
ward movement was gradual and the SELL
ir.. did not appear to be of an urgent
character, but as soon as the rate for
call money got above 6 per cent, heavy
blocks of stock were offered for sale,
apparently without regard to price and
the downward trend of quotations be-
came precipitate. Breaks of from n to
/ point between sales were frequent and
the buying power was SO limited that
difficulty was experienced TO execute sell
ing orders. 1t was noticed that weak
ness centered in Reading, the Hartman
railroads and the Hill stocks, and the
weakness of the latter was closely as
sociated in the minds of professional
traders with the departure for Europe to-
day of j. P. Morgan. The drop in Read
ing was as rapid and sensational today
as was the sharp upward movement Ill
the same stock a week ago, but there
was no more news to account for todays
movement than the former one.
Momentum at Midday.
As the drain had reached its full mo-
mentum about midday, there was rally,
followed by another break, which in turn
was followed by another rally, but the
better tone did not hold and Just ne
fore the close there was a final slump,
with the list generally weak with prices
at or near the lowest of the day.
Apart from the higher money and the
bearish feeling abroad there was moth
ing in the days developments of sufficient
Importance to cause any such wholesale
throwing over of stocks as took place.
The general sentiment in Wall street,
however. was pessimistic, even the old
superstition as to the 18th of the month,
playing some part In the talk Oh the
street, Every unfavorable rumor was
given credence for time at least. Re-
ports Of financial difficulties abroad were
accepted as true, and even magnified
the requirements of the money market
within the next few days. Although they
have been known for some time they
were given great Importance and good
idea of the tone of pessimism may be
obtained from the fact that the news re-
hot tta q nv nf g.
ury did not intend to call for an inn
mediate return of S3,OO0,0OO of government
funds now in the hands of the banks.
wa met with disbelief, traders fearing
that it might be a false report given
out in the hope of steadying the mar
ket
Business Conditions.
Official confirmation was quickly received
but up to the close it was without eff
feet upon the stock exchange trading.
There were some reports that the general
mercantile and commercial situation does
not show as favorable an outlook as it
did a few months ago. and these attract
ed considerable attention as Wall street
is always very sc --itive to any change
in general business conditions, foreseeing
therein threats of dimlution in railroad
traffic and in the revenues of other cor
porations the stocks of which are traded
decpi'e in these reports, bat they played
a considerable part in framing the gen.
eral sentiment. nevertheless
The advance in the money rate was at
tributed to preparations by the banks
to meet heavy payments coming due with
in the next few days. These include be-
sides the regular interest payments due
on .darch 10. an installnent of $4,000
900 on the Pennsylvania railroad note
issue Of 5000 600 and s15. 1000, 900 for the
Standard Oil dividend. When the Stand
ard rate was reached there was consid-
cradle lending in the New York market
by out of town hanks, and this lending
played a considerable part in the quota
tions for call money during the after
noon. Inquiry after the close developed
nothing to show that any of the stock
exchange houses las in trouble. 1t is
thought that brokers have had plenty of
time to prepare for the situation by
calling on their customers for margins
and that the losses at today's low figures
were suffered by those who had held on
to their stocks. and by the brokers them
selves.
The low prices Of the day compared
with the important declines from last
nights close were as follows:
Reading. 121s: Union Pacific. 11A; Great
Northern, ~: Northern Pacific. II; Anal
gamated Copper ~; Chicago Great
Northwestern IA ST. Paul. I; Sugar. 6;
b4.timore and Ohio. 5ss; Atchison 5h:
Southern Pacific. 81; Colorado Southern,
4as; Pennsylvania 3%.
Prices Depressed.
Parlin MARCH IL -prices on tho hot1rsa