Omaha daily bee., 1907-01-19
NEW YORK, STOCESANDBONDS
Strong and Well Organised Bear Party
Raids the Market.
WEAKNESS is GENERAL AND ACUTE
Special Drive Made Against steel,
Harrimans, Hills, Sc. Paul,
Readins and AmaIga-
mated Copper.

NEW YORK, Jan. ls-Clouds OF depres-
sion gathered over the stock market today
and intermittent hitherto, became general
ana acute This was a result rather of
a capitalization of sentiment on current
topics Of discussion than OF a present
factor In the situation. Moreover II became
very evident that large activities were
traceable to professional party Of ope-
rators on the bear side of the market. This
party showed every evidence of skillfu
organization and aggressive leadership and
there was general disposition to attribute
It's generalship to veteran operator whose
ACTIVITIES have been dormant for a con-
siderable period so far as public informa-
ton has followed them.
The bold methods pursued by the newly
organized party Is shown by the wide
spread proclamation made before the open
ing of trading of the plans for the day,
including special pressure to be directed
against United States Steel and Union Pa
clfc. 1t was explained, moreover. that this
plan of strategy was intended to be d.
rected against what seemed to be the Port
arthur OF the market with view to Sc
curing the key to the position. This fig
urative explanation is based upon the COM
parative hrmness with which those stocks
have resisted the general weakness here
totore and the sympathetic effect this has
had In sustaining the general market.
While professional short selling was clearly
traceable In the days market the vulner-
ability of values confirmed the views Of the
bears end proved the existence of the con-
dition on which they based the attack. In
effective support for securities attacked.
the fall I'm prices intensified the prest ure
OF the Liquidation and gave much of II the
appearance Of urgency which always gives
currency to rumors of financial stress
about the Stock exchange
The estimates of the weeks currency
movement emphasized the growing ease Of
the money situation, with an indicated cash
gain Of Sl40Jc,000. But sentiment in the
stock market is formed 70 the belief that
the aocunirlation of money. resources at
4 moi m hn for he Of rgaor
ket speculation, but is likely to be be-
spoken as fast as available to take care
Of the enormous issues of new capital.
The terms OH which the new capital is
to be offered for subscription will assure
an attraction. to privileged subscribers,
such as stockholders at least, which is cal
culatcd to outweigh the advantages offered
by any OF the securities now In the open
market. This fact, together with the poor
success of recent undertakings where such
attractions were not sufficiently inviting,
and the high interest rates the railroads
are paying for temporary resources on note
issues to carry out the urgent work of i'm
uroYement, Is accepted as warning that
the prevailing level Of values in the market
is too high 20 compete with the new offer
ings incoming from many quarters.
The course of the foreign exchange mar
ket also dscourages hope of any effective
relief for our money necessities. Yester-
day s reduction in the Bank of England
discoun. rate az followed today by a hard-
ening III the open market discount rate m
London and a movement of the interna-
ton eXchar gees in favor of London. This
corroburates Il suTposltion that the PURPOSE
OF the Bank OF England authorities IN le-
ductnE The official discount rate vas to
resume It's cCEtrol of the open money mar.
kIt, whHh has escaped them owing 20 the
discrepancy IN the private and Off cial dis
count rates. BY borrowing from the market
the Bank of England may make its per
coat rate effective there and raise a. barrier
against tho extension of credits to New
No;ls borrowers
The December foreign trade statement
published today showed a decrease in the
excess value of exports over imports of
s4S, 10000 compared with the preceding De-
cember. New York's control of the ex-
changes is thus shown to be much lessened.
Sterling exchange was strong here today.
Stocks enjoyed one good rally in the after
noon when shorts took profits and reduced
their lines but another determined drive
against the market dislodged heavy stop
loss orders and caused threatening slump
in st. Paul, the Harrimans, the Hills
Reading and Amalgamated Copper. The
closing was, in consequence, much unset
tied and feverishly active.
Bonds were irregular. Total Sales par
value, $2,4770o0. United States bonds were
unchanged on call.
Sales and range of prices on the New
York Stock exchange were: