The daily morning journal and courier., 1907-01-17
AccOmpanIed by Easier Money.

It was bad day for the bulls in Wall street yesterday. With money easy and growing easier, prices fell with a thud in many stocks A few held up tolerably we'll
 Prices reached the lowest average in many months and the sentiment was more bearish than ever. The corpora tion demand for more capital was at the bottom of the collapse.
 The decline started with a break in Southern railway preferred, followed by decline in the common, then slump in Erie, later collapse in Amalgama- ted Copper, with finally a recession through the list that amounted to from two to six points.
 The doubtful question, over which the Stock Exchange puzzled it's wits yesterday, was how the large financial interests stand in the light of the mar ket's present situation.
 The general break in stocks seems to be the climax of week of disappoint- ment over the failure of the market to reflect the easier money rates and the piling of an ever increasing load of new capital on top of their burdens.
 Stocks have reached a level where, by all recent estimates of value, they show least imitation of any class of collateral that the investr has to deal witA
 London sold fifteen thousand shares out of twenty thousand dealt here for foreign account. It was without fea- oy, 4hn r11 spurt in prices. The later setback dil not induce any buying, thus showing the general apathy in London to trade In our stocks.
 The heavy offerings of Amalgamated Copper ,disconcerted the speculative in terests who had been depending on this stock to sustain the general list.
 The stock market was quieter and somewhat steadier in the last half hour. There were moderate rallies in various issues at the close. Southern railway ended with slight rally. It was reported at the close that this company would issue firm $25.OO0,0O0 to $50,00G,000 in short term notes.
 Southern preferred sold at 1O9 last January. It has been regarded as a semi-investment issue and was widely held. In per cent, money market 1t paid well, and at the recent price of 95 carried itself through the hard times It looks as though the selling had been by people who had knowledge of a possible change in dividend,
 Several brokers had orders to sell from 5000 to 10000 shares each of Southern railway common yesterday and others were intrusted with orders to sell half as much or more of Erie common, all of which indicated a pre- concerted bear attack,
 There were many wild rumors. For instance, it was gossiped MT. Morgan was dying and that MT. Hartman did not improve as he should, MT. Still man had an incurable disease. MT. Morgan and MT Hartman were fight ing each other. The Standard Oil peo- pie were liquidating. And so on.
 Erie has been making better results than Southern with a much smaller op- erating ratio and an ability to save some of the earnings, But it needs capital and has inferior credit,
 Lehigh Valley directors yesterday approved the purchase of five thousand additional freight cars and fifty-five locomotives.
 From the action of Amalgamated it was assumed that the dividend would not be increased. A further hint of this was given in the delay in the Bos- ton and Montana dividend announce ment, though the rate was declared yesterday.
 Most of the call loans yesterday were made around 4 per cent, which was the rate charged for renewals, Time loans for year were made at as low as 5 1-2 per cent, a drop of 1 1-2 per cent. from recent high figures.
 The partial recovery Of prices at the close yesterday resulted plainly from buying of shorts. Money was easy; and the days liquidation ought to make 1t easier.