The Washington herald., 1907-03-26
STOCKS SATLOW MARX
Prices Below Those of March
Il, Day Of Panic.
MARKET NOT DEMORALIzED
Failures Predicted in London Set
element, hut Only One OF an Unins-
DOrtant Character RepOrted-HeIp
oRered by Secretary CoFteIyoa Not
SUFFICIENT, says Wall Street.

New York, March "a further heavy
decline occurred to-day in the security
market carrying prices Of stock down to
new low record for the year. that is
10 say. below the average price for the
standard shares recorded at the close Of
business on March IA. the day of the
recent so-called panic. There were, IN
fact. not merely one, but several breaks
IN the market to-day and each period OF
recovery in prices was followed by an
other and more vehement selling move
ment than that which preceded it.
There was during all this no such ex-
treme falls as that which took place the
week before last. but the fact that for
the last few days the market has been
rapidly losing ground made it possible
foF to-day's decline to establish a new
low point. Neither could it be said that
there was any such Generalization in
the market to-day as was noticed a short
time since. Dealings III stocks, while
greater than those IN days at the end of
last week, were below those on recent
occasions when the excitement in tie
market was at it's height.
At the close of last week the powerful
factor in the movement in the market
appeared to be the supposed strained
condition Of financial affairs In Berlin
and London. A top-heavy speculation
for the rise there, II was said, as was
the case in our own market and for the
same reasons as those operating here
was on the point of tumbling down.
Failures and all sorts of dire things
were. according to rumoT, expected at the
London settlement to-day Yet develop
ments on the other side of the Atlantic
to-day were really favorable in a market
sense. They included the fact that only
one failure. and that of an utterly uuim-
portant character had occurred at the
London settlement thus far, although it
is true, of course. that this settlement
has yet two more days 10 run. and that
Possibilities of trouble there are not alb
solutely at an end.
Buy Gold in London.
our bankers bought H,750.00O in gold in
the open market in London and. despite
this fact, sterling exchange here declined,
so frmer tone prevailed on the Berlin
boerse. and the prices of American stocks
as cabled here from London before the
opening Of business on cur stock ex-
change We're all at good gains over Sat
urdays final quotations. Prices at first
here responded slightly to these advances, !
but in less than fifteen minutes after the
opening OF the market a furious storm of
selling broke out Declines running from
two TO seven points were made in most
OF the active stocks. and from then on the
story of the day was only one of con-
tinually recurring weakness
The lowest prices were made at the be-
ginning of the last hour of the stock ex-
change session, and thereafter held within
range of one or two points from the
bottom. Closing quotations were at a fair
advance from the very lowest named,
owing. as seemed. to covering purchases
made as usual by room trading specula-
tors al The very last moment. when such
operations could be conducted. No more
could really be said in explanation OF the
movement to-day than has been daily re-
peated in Wall street for months past.
IN addition to the encouraging news to-
day Rom Europe, the Secretary of the
Treasury announced that he would allow
that of government bonds as security for
the special deposit fund of government
money now resting with the banks and
secured by government bonds of 1907,
which Will mature in a few months.
This action, however, was not regarded
by Wall street as a matter of impOr-
tance. Something more helpful from the
Treasury at the present time would be
the announcement that 900 or So, ,000,-
O)O of public money had been placed with
the national bank repositories in addition
TO that already deposited there.
CaII-mOney Rates Up.
Cau-money rates have not until very
recently displayed any tendency to ad- /
vance, and the weakness of the stock does
not appear to have been caused by any
particular inability on the part of the
stock exchange commission firms 10 Sc
cure daily funds for carrying stocks; but
there is no doubt, however, that between !
now and the 1st of April assuming that /
no such government action is taken of the /
kind described, more stringent money
situation viii temporarily assert itself. /
and it would seem entirely proper, all the !
circumstances of the case being borne /
IN mind. that the Treasury should be |
willing to render what relief it can TO the |
situation.
The continually unpleasant feature of /
the general financial situation remains |
the fact that despite the enormous and |
almost unprecedented liquidation in Sc
curity VALUES bank loans do not decrease. |
Commercial industrial, and mercantile /
business in the country is still, appar- |
entity, absorbing every dollar that Wall |
street unwillingly lays down, and as long /
as this continues the money situation, |
broadly considered, must affect the stock |
market adversely.
While there were renewed rumOrs of 1
financial trouble to-day. none of these |
were ut all direct or acute. and all seemed |
TO have their origin in a commonly dis |
persed impression that was, it must be /
confessed. not wholly unreasonable that /
such strain in the commIssion-house /
district could not be kept up at the pres |
ent increasing rate without resulting be- /
fore long in specific difficulties
The immediate cause of the decline in /
the market to-day was beyond any gues- |
tion a recurrence of fierce and determined /
attacks upon values by the bear speSu- /
latlVe element Liquidation undoubtedly
occurred, but it was liquidation provoked I
by onsiaughts of the kind described. and /
these onslaughts for the day seemed to 1
be especially directed against the indus /
trial, as distinguished from the railroad /
HHaA