The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-08-19
Stock Market Almost Over
whellned by Successive
Waves OF Liquidation.
FEAR FURTHER LEGISLATION
This Is One of the Contributing
Causes to Situation in
Financial World.

| &
NEW YORK, August 1s.--rhe decline
in prices which has been In progress
| for some time past continued during
the past week. with many securities
reaching their lowest quotations in
years
Successive waves OF liquidation dur
ling the last few months have swept
away the profits of years. and have
made the stock market extremely SEN
sitfve and vulnerable to attack. The
contributing causes to the situation
have been and are the fears of further
l.tions by the next Congress and the
Legislatures of various States, higher
rates for money. with reduced supplies
OF available funds, apparent indiffer-
ence to the decline in stock prices on
the part OF interests with large capt.
tai investments at stake. visible signs
OF weak spots in the trade situation.
and monetary conditions that preclude
any hope of immediate aid from Eu-
rope for American business enterprises
or stock market operations.
The week began with the market
uiiueT CiOuu. UOl
run its course even after the ten and
fifteen points decline of the preceding
week. The heavy reduction in loans
the previous Saturday hardly compen-
stated for the large loss In cash. and
with another government report on the
Standard OIL Company published on
Monday morning. Wall Street began the
week nervous and apprehensive.
Combined with this were the ex-
y,ra ccf4 - n III ,Is,,
corning the proposed plan of prosec-
ton of corporation managers who vio-
late ~the law. AS q result holders Of
securities did not know how long their
shares would be immune from attack.
Gave Mnrket No Support.
Fears OF further proceedings against
corporations made the capitalists back
Of them Indifferent as to the outcome.
and 1t was obvious that they were Civ
ing no support tocthe market. This
Indifference was a valuable asset to
the spectators for the decline, and
they offered prices down with success.
News OF developments helped to play
into the hands of the element working
for lower prices. The strike of the
photographers, while not very disturb
ing to business, caused annoyance. and
the most was made of 1T as an unfa-
vorable Incident.
i More Legitimate, however, as am
munition for lower prices was the
failure of the Pope Manufacturing
Company and the apprehension Gre
ated of similar embarrassment in
other quarters.
An example OF the state of the
money market is given by the fact
that the Consolidated Gas Company.
which is dominated by Standard OIL
interests was forced to borrow on one
year note at z per cent. A large
amount OF money was loaned Tor SIX
months at I per cent. Commercial pa
per seems to be discounting slowly,
and the banks reported many clients
who seldom come to them for accom-
modations, rather maintaining respec-
table balances. forced DO borrow be-
cause Of poor collections.S On the other
hand, call loans were surprisingly
low, but this reflected merely the de-
sire OF lenders to keep their capital
in hand
The. shrinkage in stocks has been
sufficient to allow income yields to
keep pace with prevailing interest
rates. Many substantial properties
sold during the past week at from
SIS. 600, 600 to $25,000.0oo less in market
value than on the first Of August, and
prime railroad stocks at present divi-
dend rates, have begun TO return in
vestors from to z per cent. whereas
they offered yield of but to per
cent. not SO many months ago.
Conditions Duplicated Abroad.
Domestic money conditions have heen
duplicated abroad, the most
striking example of this being af-
forded by the Bank of England's ac-
ton in raising its official rate to IL
per cent.
This was more remarkable in view
of the fact that It's reserves increased
per cent and went above the hg-
ure of the year before. Prior to its
recent advance the bank had announced
it's refusal to discount for the open
market at less than l2 per centJThe
whole run Of this plan appears to
be to clear the London field OF the
many finance bills which. the Joint
stock banks have accepted In large
quantities the past two months. and
which We're beginning to threaten the
gold reSarvA nf the Rank of Eng