The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-01-20
BEAR ELEMENT
POUNDING AWAY
Stock Market Under Severe
Pressure on Account of
Heavy Liquidation.
SOME SUPPORTING ORDERS
MANY eUEssEs AS TO SOURCE
OF WEAKNESS.
SOME SUPPORTING ORDERS

New York, Jan. 19-The stock mar
ket underwent severe pressure from
eurther liquidation today. Prices broke
again and again under the renewed
food Of stock which poured upon the
market. There was an evident deter
minahon, however. 10 protect the mar
ket. and supporting orders appeared at
each decline 10 assist the downward
tendency and rally prices. The nature
of this buying was indicated by it's
withdrawal when it had effected its
purpose Of steadying the market. II
was not pursued at the advance when
prices approached last nights level
The market closed with such support
ing movement I'm progress and the tone
was consequently strong at q final rail-
ly. although extremely feverish and
ver5 active. There was continued lack
of any immediate development in the
situation to explain the volume and the
urgency OF the selling Ii was obvious
that n strong organization OF bear op-
orators were active and alert TO take
advantage Of any sign OF weakness,
and their raiding tactics were effective
I'm dislodging weakened speculative ac-
counts.
II was generally supposed that lidui-
dation was In progress Of some impor-
tant accounts Of long standing and I'm
syndicated form which were being
thrown over TO relieve an overstrained
position in the market and for the pro-
lection Of the brokerage houses. In
dvidual brokerage houses did not es-
cape rum0rs Of money difficulties and
many vague rumors were kept i'm con-
slant circulation. although Of a less
specific character. Many dilieent in
Quries were set on foot as a result of
these conditions and clearing house and
banking authorities gave their sanction
Co assurances that no evidence Of en-
barrassment was discoverable.
The principal selling pressure CEN
tered on Reading, Union Pacific. South
ern Pacific and after a show OF
strength. St. Paul. The market showed
the most acute weakness after the ap-
pearance Of the bank statement, when
numerous offerings OF the stocks above
named came upon the market The
$lS.l9S,00O cash gain by the banks was
much i'm excess OF expectations. The
$l514SOO0 loan increase was attributed
10 large transfer of loans from Lon
don 10 this market The continued
strength OF foreign exchange Indicated
an extension OF this process. The money
'''N i'N' oto' III LuuuOi. Inc aDpar-
emf concert Of unfavorable criticism of
American securities and finance by the
foreign press is a depressing factor.
owing to its probable discouraging Of
feet on any intended purchase by for
eigners Of American securities.
An underlying influence on the read
Justment Of prices in progress is I'm
contrast Of the greater attractions to be
offered by new securities and the dis
position 10 provide means for taking
them up by liquidation of securities at
correspondingly higher range of
prices. Total sales OF bonds, par value.
$l5l2OO0.
Stocks have been actually depressed
this week by important liquidation. the
sources and motives of which have Civ
en- food for varied conjecture and in
terpretation. There has been a pro-
nounced relaxation in the former strin-
gency of The money market, and the
entire lack Of response TO this improved
condition i'm the stock market has had
a very discOuraging effect on specu-
lativc sentiment. The successive de-
Nelopments TO show the huge require
ments In contemplation for additional
capital by the railroad companies have
ceen regarded as having a portentious
significance and have upset confidence
IN the sutficiency OF the available re-
sources 10 meet these heavy demands.
bonds have been dull and irregular.
United states new As advanced "a per
cent on eau during the week.