Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1907-08-19
The Waves Of Liquidation
Make Market Sensitive.
Also Sweep Away Profits Of
Many Years Of Trading.
Call Loans Are Very Low, But Time
Money Makes 1t Up.

New York, Aug. 1S.-The decline in
prices which has been in progress for
some time past, continued during the
past week, with many securities reach
ing their lowest quotations in years.
Successive waves of liquidation during
the last months have swept away the
profits of years and have made the
stock market extremely sensitive and
vulnerable to attack. The contributing
causes to the situation have been and
are the fears Of further restrictive leg
iSlation against corporations by the
next Congress and the Legislatures of
various states, higher rates for mon
cy. with reduced supplies of available
funds. apparent Indifference to the de-
cline in stock prices on the part of in
tcrcsts with large capital investments
at stake. visible signs Of weak spots
in the trade situation, and monetary
conditions that preclude any hope of
Immediate aid from Europe for Amer
lean business enterprises Of stock mar
kct operations.
The week began with the market I'M
der a cloud. Liquidation had not run
its course even after the 10 and Is
points decline of the preceding week.
The heavy reduction in loans the pre-
vious Saturday hardly compensated for
the large loss in cash and with anoth-
or government report on the Standard
oil 60. published Monday morning.
Wall street began the week nervous
and apprchcnSivc. Combined with this
We're the expressions of a cabinet men,
b,r concerning the proposed plan of
prosecution of corporation managers
who violate the law. As a result hold
c:s nf securities did not know how long
their shares would be immune from
attack. Fears from further proceed
ings against corporations made the
capitalists back of them Indifferent as
to the outcome and it was obvious that
they were giving no support to the
market. This Indifference was valu
able asset to the spectators for the
decline. and they offered prices down
with continuing success.
News developments helped to play
Into the hands Of the element working
for lower prices. The strike Of the
tclccraphrrs, while not very disturbing
To business, caused annoyance and the
mos, was made Of II as an unfavOrabic
incident More legitimate. however, as
s'iIl'HuHitl'l ltI lbNtT prices WIS tilc
failure of the Pope manufacturing
company and the apprehension created
Of similar embarrassment in other
quarters.
a large amount of money was loaned
for six mhnths at I per cent. Com
mercial paper seems to be diScOunting
slowly and tn" banks reported many
clients who seldom come To them for
accommodations. rather maintaining
respectable balances forced to borrow
because Of poor collections.
On The other hand call loans were
Surprisingly low.
The shrinkagc has been sufficient to
allow income yields to keep pace with
prevailing interest rates. Many sub
stantial properties sold during the past
week from $4,000. 600 to So, 600 GEO less
in market value than on the first of
August. and prime railroad stocks at
present dividend rates, have begun to
return investors from 6 to : per cent.
where as they offered q yield Of but
four to five per cent. not 50 many
months ago.
Locally there is 4 disposition to re-
~ on the treasury again for assist
anCe but so far there is no sign of this,
meanwhile the New York banks are
low in reserve. the interior is keeping
up its exchange against New York, and
the crop moving season which drains
the reserve cities each year. despite
the talk of ability of the interior to
finance itself is moving along to its