Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1907-03-14
Wholesale Throwing Over
Of Stocks on Exchange.
Wall Street Men Under Ihflu.
ence Of 18Th Ct Month.
Many Wild Rumors Cause Heavy
Decline In Prices.

New York, March 13.-The most
sensational decline in prices for sew
eral years occurred on the Stock Ex-
change today. Except that money
rates were higher and that the tone
on the foreign exchanges was unfav-
orable there was no news to account
for the break in prices. The market
opened weak under the influence of
lower prices for Americans abroad and
the decrease in counsuls to the lowest
price since 1886. At first the down.
ward movement was gradual and the
selling did not appear to be of an ur-
gent character, but as soon as the rate
for call money got above six per cent
heavy blocks of stock We're offered for
sale, apparently without regard to
prices and the downward trend of
quotations became precipitate. Breaks
of from half to a point between sales
were frequent and the buying power
was so limited that it seemed to be
difficult in some of the weaker fea-
lures to execute selling orders.
1t was noticed that weakness CEN
tered in Reading. the Hartman rail-
roads and the Hill stocks and the
weakness of the latter was closely as
sociated in the minds of the profess
sional traders with the departure for
Europe today of j. p. Morgan. The
drop in Reading was as rapid and as
sensational today as was the sharp
upward movement in the same stock
week ago.. but there was for the for
mer one.
After the decline had reached its
full momentum about midday there
was a rally followed by another break
which in turn was succeeded by re-
newal of the rally. but the better tone
did not hold and just before the close
there was a final slump, with the list
generally weak and prices at or near
the lowest of the day.
Apart from the higher money and
the bearish feeling abroad there was
nothing in the days developments Of
sufficient importance to cause any such
wholesale throwing over of stocks as
took place. The general sentiment in
Wall street, however. was pessimistic,
even the old superstition as the 18th of
the month playing some part in the
talk of the street. Every unfavorable
IullOl Was SlNtl CTtutllCt 1oI Il Illnc
at least.
Reports of financial difficulties abroad
We're accepted as true and even maCni-
fed the requirements bf the money
market within the next few days. al,
though they have been fully known for
some time, were given great impor-
lance and a good idea of the tone of SEN
timent may be obtained from the fact
that when the news was received that
the secretary of the treasury did not
intend to call for an immediate return
of $50, 900 900 Of government funds now
in the hands of the banks it met with
disbelief, traders fearing that il might
be false report given out in the hope
of Steadying the market Official con-
firmation was quickly received. but up
to the close it was without effect upon
the Stock Exchange trading. There
were some reports that the general
mercantile and commercial situation
does not show as favorable an outlook
as it did d few months ago and these
attracted considerable attention. As
Wall street is always very sensitive 10
any change in general business condi-
tions. foreseeing therein threats OF di-
intuition in railroad traffic and in the
revenues of other corporations, the
stocks of which are traded in on the
Stock Exchange. There was nothing
definite in these reports. but they
played a considerable part in framing
the general sentiment nevertheless.
The advance in the money rate was
attributed to preparations by the banks
to meet heavy payments coming due
within the next few days. These includ-
ed besides the regular interest pay
ments due on March -. an installmcnt
Of $50, 900 900 on the Pennsylvania note
issue Of $50 900 600 and $4,000, 900 for the
Standard Oil dividend. When the high
rate was reached there was cOnsidera-
Bile lending in the New York market,
siderable part in the low quotations for
call money during the afternoon.
Inquiry after the closeof the market
developed nothing to show that any OF
the Stock Exchange houses were i'll
trouble. 1t was said that brokers had
had plenty of time to prepare for the
situation by calling on their customers
for margins and that the losses shown
ut today's low figures were suffered by
those who had held on to their stocks
and not by the brokers.
AT the low prices of the day the more
important declines flbm last nights
close were as follows:
Reading, 1915; Union Pacific. ia:
Great Northern, u; Northern Pacific,