Los Angeles herald., 1907-03-23
STEADY SELLING
IN WALL STREET
THE ERIES UNDER STRONG
PRESSURE
Hartman and Hill Stocks Aoutely
Affected by the General Decline
in Values-Foreisn Dis
count Rates

NEW YORK, March 22.-Tho stock
market turned very weak again today.
Some of the stocks which were under
level reached in the panic last week. This
was notably true of the Eries and weak
ness or those stocks was of large sympa-
theuc effect upon the whole list Tie
other dominant factor I'm the market was
the consequences feared from the ad-
vance yesterday in the Bank of France
discount rate.
The aggravating cause of the weakness
OF the Eries was clearly due to the an
nouncement of the management that 1t
would abandon projected betterments in
the state of New York from fear of thu
interference Of the intended methods of
financing the work proposed by legisla-
tion for control of public utilities. Back
OF this open explanation there were
rumors OF radical dissensions in the com
Bany and of disappointment as to the
results of appointments already made.
The bears. in fact, operated in the seCuri-
tles or the company very freely and very
boldly. They were not opposed. however,
by any protective measures for the Sc
curlties in the market. This supine atti-
tude of the friends or controllers of the
property had no discouraging effect on
any views favoring an advance in prices.
Instead of the turn against the sup
posed large outstanding short interest
which was talked of during the harden
ing, period of prices yesterday. the bears
undertook fresh operations on a large
scale and had good success i'm precipitat-
ing fresh liquidation in various quarters
of the list
The Morgan group was especially eff
fected when the entire lack of support
in the Fries was perceptive. The weak
ness. spread to Southern Railway and the
whole southern railway group. The. Hills
and l1arrimanS also We're acutely affected
and had the usual effect of dragging down
st. Paul, Atchison and Reading.
United States Steel was heavily sold,
but on narrower price range than the
low priced shares.
The effect of the advance in the Bank
Of France rate was heightened by reports
from Paris that a further rise was eX-
pected next week The action is directed
against a movement of gold to London
and also to Berlin It's special interest
to New York is that payment for parti-
roads are supposed to be involved in both
these movements. This movement of
capital out of France evidently is inten-
slfed by the wide discrepancy between
the ruling interest rates in Paris and the
rate of return on these high grade note
issues. The Bank of France finds it un-
wise to persist in keeping home interest
rates so far out of line with the world S
average, even with the advantage of sta
bility in the money market for business
and trade. 1t is as a recognition of the
rise in money rates that the action of the
French bank is regarded as important
rather from any likelihood of banking re-
serves in other centers being affected.
Private cables from London reported
some anxiety there regarding the outcome
of the stock market settlement next week.
Preliminary estimates of the weeks cur
rncy movement indicate an increase OF
inward of S6,0OO,0OO of the cash holdings
the drastic market liquidation of the last
week as it came late in the week will
affect the moves of the loan account OF
this week as much as last. A strong
bank movement is thus indicated
The market closed weak and around the
low point at severe declines. the effect
of the break in the Fries being agaiT
aggravated by the slump in Canadian Pa.
cifc.
Bonds We're irregular. Total sales, PAL
value 81. .792, 900.
United States Is registered declined z
per cent, the old As Il per cent and the
new As II Der cent on call.