Los Angeles herald., 1908-12-18
NEW YORK STOCK
AND BOND MARKET

NEW YORK, Dec 1T-There was the
sharpest break in prices of stocks today that
has occurred since the socalled scare follow
ing the Maine election in September. Specu-
lative holdings were shaken out of their weak
ened positions and thrown on the market at
rates of concessions that gave an appearance
Of semi
The most Significant feature of the market
was not the volume of the liquidation. wnlch
not unusually heavy as is Witnessed py
the moderate amount for the total sales Ior
the day. but the total abandonment OF the
support Of abe market which has held prices
rigid against reactionary influence ior tne
greater part of the time throughout the year
great rise. That policy was thrown aside 10
day. either because Of the diminishing supply
OF banking credits with which to maintain IT,
or because of dissatisfaction of those VINO
lave followed 1t with some Of the features III
the outlook for affairs
That the burden of sustaining prices at the
extremely advanced level to which they nave
reached is increased by the restriction or
money supplies is certain, in spite OF the
moderate effect thus far produced on the open
rates for money.
latge and influential capitalists, who acte in
the stock market, is not likely to be a matter
for open conjecture in the ordinary channels
of the money market, but the great pahNs
concerned in such affairs may bring pressure
To bear for adjustment in times OF shl1tlns
money conditions which are efficacious as the
advance in money rates in the open market
The possibility of such factor operating in
the days market may have been the sole
ground for the rumors in circulation pointing
to individuals, but that such rumors were
heard is a factor.
The money market showed symptoms of
disturbance although the hrmer tone was
maintained until the later dealings. win
each day bringing important bond sales and
With today's subtreasury absorption of $l'4OO, =
OOO bringing the total for the banking week
w to s17, ,6O1, ,0O0 this could not well be other-
wise, in view of the relation of these forces
to the surplus banking reserve as shown by
the Saturday bank statement.
The advance in money rates has had the ef-
feet Of attracting some funds from out OF
town sources, and of putting stop to the
gold expectation, and the liquidation OF stock
market loans, which was carrying prices
downward, was releasing credits as Well
Foreign money markets showed the effects of
the coming strain of the yearly settlements.
The declining condition Of the Bank of
England brought its proportion of reserve la
biIities to a figure below the corresponding
time last year for the first time throughout
the fall months
The acute weakness Of American Smelling
and of shares in other companies in the metal
trade found a special explanation in the criti-
cal attitude displayed by members Of the
ways and means committee of the house
toward the duty on lead ore.
Reports of unstable conditions in the copper
market and of a production far outrunning
the amounts going into consumption were a
contrfbutory and pulled down Amalga-
mated Copper along with Smelling stocks
The weakness was not limited TO any restrict
ed fold, in the list of securities, and spread
gradually and with increasing effect. The
decline itself had the effect of uncoverng stop
loss orders and of bringing out calls for addi-
tional margins.
The remarks of the president-elect at din
Of the Ohio society seemed TO be regarded
as bringing disinusionment to some of the
speculative element, which has dwelt on the
future immunity to be enjoyed by corpora
tions a motive for advancing prices.
The professional element laid some stress on
a rumor that the selling of the stocks was
in the interest of an extensive combination OF
bucketshops, which would have a claim to
enforce sums in customers margins upon the
prices falling to a level that would wipe them
out The cheapening OF prices as result of
the days sales amounted from / to 3 points
for practically all the stocks dealt in.
Bonds were irregular. Total sales, par
value, s4,9oeOOO; government bonds were un-
changed on call.