The Washington herald., 1907-11-20
BOND PRICES REACT
Liquidation Causes Declines
in Certain Securities.
ADVANCES EXCEED LOSSES
Extreme Low Figures Of the Day
Relatively Less Than Higher Marks
heretofore Accorded - Admitted
That the Panama Bond Issue VIII
Notably Increase Note Circulation.

New York. Nov. 19-The security mar
ket to-day lost much of its yesterday $
rise. although the extreme declines We're
not as great as has been the extreme
advances. This reversal of form in the
market was unquesuonabIy due to one
cause, and one only-the recurrence of
liquidation In certain particular quarters.
this time in the bond list The selling
here centered during the greater portion
OF the day in the Rock Island per cent
collateral trust bOnds-those issued at the
time OF the formation Of the present
Rock Island Company. as collateral Sc
curity for the stock OF the old Chicago,
Rock Island and Pacific Railway Com
pany. The owners of the stock Of the
old railway company accepted In re
turn for their stock one collateral trust
bond for ten shares of the stock and
received also in addition a certain
quantity Of the common and preferred
shares of the new Rock Island Company
In substance. this means that the present
collateral trust bonds represent dollar for
dollar Of the former Rock Island stock.
More or less weakness has been apparent
In these bonds for some time. and yes
terday their price fell off two points
To-day the price declined four points
more. reaching n quotation Of 80 upon
sales OF considerably over $l,OO0,OCO Of the
bonds.
Rock Island Liquidation
owing TO the manner in which the bonds
were sold and 20 various circumstances
the opinion almost universally held in
Wall street to-day was that the liquida-
ton was for the account of former
member OF the famous Rock Island
party" who, it is supposed. has been
unfortunate in his market operations in
the last two years, and it was believed
to-day that the selling represented the
closing out Of a loan 10 which renewal
was denied.
The decline in to-days market was
general. embracing all the active stocks
and the market closed at about the days
lowest figures There appeared to be an
effort to create as much confusion as
possible as to the exact effect upon the
money situation likely 10 be produced by
the issue of the new canal 3 per cent
certificates Of Indebtedness in the manner
outlined by the Secretary of the Treas
ury.
Bond Issue Helpful.
Il was admitted that the issues Of Pana-
ma canal bonds would have the effect Of
increasing the bank note circulation. but
there were those who declared themselves
unable 70 see how a similar result would
follow the issue Of the 3 per cent. certi6-
Gates They professed inability 70 under
stand how if the national banks bought
the new certificates with their reserve
money and redeposited the certificates
with the Treasury AS security for the
deposit of government money the opera
ton would bring any change whatever
in the existing status. General financial
developments were not many. Jhe prem
ium on currency ranged about as II did
yesterday and there were no violent
fluctuations in Sterling Exchange or in
time or call money rates
The directors Of the Atlantic Coast Line
at Their meeting held i'm Richmond to-day
decides to defer until December the dec
laration of the usual semi-annual divi-
deld upon their companv's stock.