The Washington herald., 1907-01-17
STOCK PRICES DOWN
Volume of Dealing on Ex-
change Shows Increase.
MUCH LIQUIDATION APPARENT
Heavy Selling Movement I'm Southern
and Erie Railroad Shares-Neyv
Capital Issues Suspected in Case
OF the Latter ROad-AmaIgamated
Copper shows Weakness.

New York. Jan. 16-There was a consid-
cradle increase to-day in the volume of
dealings in the stock market, and prices
of stocks almost without exception de-
clined. While the selling that occurred
bore 10 very large extent all the ear
marks of provisional speculative opera
tions. yet there was during the day a good
deal of genuine liquidation; but il must be
said that considering the violence of the
attack made and the amount of actual
throwing over of holdings that it induced,
the days market as a whole did not give
bad account of itself.
There was at the very outset Of business
heavy selling of the common shares of
the Southern Railway and Erie COM
panies, apparently based as far as the
first named stock was concerned, upon the
publication of a statement this morning
emanating from the president of the
Southern Railway Company, in which he
emphasized at length the needs of the
road for additional facilities of every de-
seription to meet the demands Of the new
business that had been created in recent
years. and conveyed what was understood
borrowing necessities Of the road in the
near future would be large The decline
in Erie also was taken as presaging an
announcement of new capital issues of
some kind by the Erie company; and these
developments, Joined to the declaration
OF the directors Of the Chicago and North
western Railway Company yesterday of
their intention TO issue $25. .OO0, 900 new COM
mon stock served to Unsettle the market.
AmaIEamated Copper Weak.
Added to the force Of these adverse in
fuences as construed from a speculative
point Of view, was weakness in Amalga-
mated Copper stock, due to the general
spread Of a conviction that the Amalga-
mated directors at their meeting to-mor-
row would not increase the cOmpany's s
quarterly dividend rate. For no little
time prices through and through the mar
ket held up remarkably well under the
short selling and the closing-out of ac-
counts by speculators for the rise. The
strength OF certain stock attracted espe-
cial attention. The decline did not bring
about. as it has done on nearly all pre-
vious occasions, any recessions Of moment
IN the price of the Great Northern and
Northern Pacific stocks, and dealings I'm
these stocks We're small
Both Of the stocks acted throughout as
II liquidation in them had been completed.
Twice during the day St Paul common
shares rose TO a distinctly higher level
than that at which they closed yesterday:
while more noticeable support than in
any Of these stocks. perhaps was accord
ed 10 the Southern Pacific shares. rs the
price OF SOuth0Fn Pacific declined, larger
and larger buying orders in il were dis
closed, and it left off for the day at only
fractional net losses. Union Pacific stocks
too, fell less than a point, although tran
sactions in it were over 100000 shares.
Aside from the weakness in the particu-
lar issues 10 which reference has been
made, there were no developments to-day
OF q kind worthy of notice that could be
adduced as explaining in any way the
decline in the market that occurred. Wall
street was full Of TumoTs, whose fictitious
origin and speculative purpose were plain
ly discernible, Of the illness Of this or that
We'll known banker or prominent finan-
cier, and these stories appeared to have
some effect in tie London market where
they assumed a much more definite form
than they did here
RUmOrs without Reason.
They were, Of course, utterly baseIess.
What did happen. as was generally be-
leved, was that one or more speculative
pIungers, who had been carrying a far
greater amount of stock than their re-
sources permitted. and who have incurred
heavy losses during recent months, were
forced to-day TO reduce their accounts
with their brokers. The money situation
to-day worked continually in the direction
OF greater ease. a further reduction in
discount rates In the open market in Lon
don, and steadiness in the sterling eX-
change market here resulted in something
more than hopes in London that the
Bank Of England's discount rate will be
reduced tomorrow
Call money rates here did not rise above
per cent-bank renewals being commonly
made at this figure-and throughout the
afternoon generally held around per
cent The banks reported another larger
gain from the subtreasury in their yes
terdays transactions. bringing their total
net gain from the government for the
week up to the opening Of business this
morning to $7109. 00O. while during the day
they gained further from the government
81, 100000 Moreover, there appeared to-
day a lowering Of time money rates that
was very plainly foreshadOWed yesterday.
In at least one leading banking institu-
ton these rates were quoted for all
70 So per month.