The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1907-03-26
SELLING FRENZY
GRIPS TIL MARKET
An Entire Paralysis of Demand
for Stocks
COPPER AND TIN DECLINE
The Market Defles Clear Analysis.
Unbridled Impulse to Sell and
Disastrous Consequences
to Prices.
COPPER AND TIN DECLINE

New York. March 25.-Todays stock
market defies any clear analysis. The
surface facts ON which there is no room
for dispute are that there was unbridled
impulse to sell securities, and an almost
entire paralysis of demand. The conse-
quences to prices were such as might be
imagined. That any urgent necessity was
forcing holders of securities to part with
them did not appear from any facts
known to the public. The banks were
not calling loans and the withdrawal of
credits by money lenders could not be
aseribed as the impelling cause of the
slump.
OF course the violent decline and the
shrinkage in collateral caused a readjusl-
ment constantly of loans, and this shrink
age, of course, forced valuable holdings
on the market in the course of the fall.
But stringency of money was not the
primary cause in forcing any liquidation.
SO far as the dread of failures at the
coming stock market settlements in Lon
don and Berlin was concerned, the stu
alton was admittedly improved over last
week.
Early prices of Americans reported from
London shows violent bounds from Satur-
days closing level here, and Berlin was
reported to be buying American securi-
ties in London. Reassuring advices from
the highest authorities in the financial
world abroad were received as to the inn
provement in the situation Berlin was
alleged to have completed necessary ar
engagements for the approaching settle
ment which has been the dreaded point.
Rumors of an important house in Lon
don, in financial difficulties. was said to
be disproved by the most careful 1nYes-
tigation. Large orders were executed in
this market to buy stocks for foreign ac-
count but with hardly more than mo-
mentary effect on prices. One particu-
lar in which London did offer an acutely
depressing factor was in the disorder here
in the metal markets Copper and tin
both showed heavy declines and specula-
tive commitments in the copper market
We're said to be involved. The large spec
ulation in copper securities in this mar
ket has been based on the confident as
sumption of sound conditions in the metal
market. This confidence was shaken and
the metal industrials proved extremely
vulnerable as consequence, including the
United States Sceel stocks.
Large pooled holdings of these securities
were believed to De touched by the de-
moraiized declines. Holders of Amalga-
mated Copper and of United States Steel
seemed to be suddenly awakened to the
recollection of past performances in these
securities following the quick transforma-
ton from the condition of great prosper
ity on their trades to acute depression and
rapid shrnkage of earnings. The opera
lions of the bear contingent in the mar
ket are believed to have taken on the
proportion of saturnalia. Individual OPP
erations on the short side in at least one
instance were believed to be of prodig-
lous proportions. These operations seemed
holt of a
controllers of outsiders in any prop
erty
A striking feature of the situation, in
fact seemed to be the consensus among
the larger interests that special measures
would be futile to check the selling
frenzy Engagements of gold in London
for import and additional latitude allowed
by the Secretary of the Treasury In the
security for government deposits, al
though promising to help the money mar
ket through We're entirely ignored. In
fuental men in the banking world did
not hesitate to characterize the selling as
prompted by insane fear.
Information from commission houses of
the terms in which some OF the selling or
ders were couched gave color to this CHAR
acterization. Fears of a coming prostra-
ton of business and of the gripping of
powers of management and control OF
corporations were alleged as principal
grounds for the alarm. 1t was late in the
day before prices reached the lowest level,
but the actual closing reflected nervous
feeling amongst the shorts In the feverish
rebounds caused by their rush to take
profits.
Bonds were weak, but not notably ac-
tive.
Total sales, par value, $685., 900.
United States bonds WEI , unchanged on
call