Los Angeles herald., 1910-07-06
PRICES ON LOAN
STOCKS TUMBLE
Cash Holdings in New York lnSti-
tutions Show a Loss of
$19,000,0OO
OUTSIDE BANKS DRAWING COIN
Effect of Death of Chief Justice
Fuller on the Market Is
Discussed
OUTSIDE BANKS DRAWING COIN
Associated Press1

NEW YORK, July 5.-Demand loan
stocks showed extreme prostration to-
day and prices were allowed to run
downward without any sign of sup
port by important banking and finan-
cial interests.
The amount of stocks marketed was
not large. The severity of the eX-
treme decline was notable on that ac-
count.
The bear party in the market seemed
encouraged by the facility with which
1t was able to procure stocks to cover
the short transactions left open after
last weeks break in prices. Having
covered over the three days holiday
interval, they were prepared to put
out fresh short lines today.
The demand was easily effective. IL
was suspected that there was some
reselling of stocks, but on the drop
last week for a profitable upturn In
the market, or purely for purposes OF
support to check the decentralization.
The signs that these stocks were
coming back on the market were
taken to mean that the larger financial
interests were not committing them
selves to any effort to advance prices
or even sustain the market at recover
ing,
BIG DROP
The consequence was drop to near
last weeks low level of prices early
In the day, but an arrest short of that
and a recovery later.
The renewal of the depression was
not accounted for by any striking new
developments in the situation. The
most important item of news was the
death of the chief justice or the
supreme court. Probably no period in
the history of the supreme court has
seen questions of more vital ana
peculiar interest to corporate wealth
awaiting the decision of that tribunal.
The extreme view of the pending Sher-
man law cases before that court is
that the very existence of corporations
is wrapped up in the form which the
decree may take. Even where that
extreme view is moderated the opinion
is general in financial circles that
definite plans for forward action IN
Volving the corporations is held back
and will be delayed until the supreme
court has set its definite interpreta-
tion upon the Sherman law. Unless
special session of the senate is called
to act on early appointments to fill
vacancies on the supreme bench, a
further delay in the hearing of the
cases until after December l is re-
garded as unavoidable.
CASH sHRINKAGE
Another item in the days disquietude
was the large shrinkage in cash hold
ings of the banks disclosed by the
Saturday bank statement. loss of
nearly $19,000,000 in the actual cash
holdings was difficult to account for.
A $9,S13,S00 loan expansion did not ac-
cord with the known acts of the dras-
tic stock market liquidation, although
the semi-annual settlements might con-
fer a plausible explanation of the loan
item. The cash item, however, caused
q supposition that outside banks had
drawn very heavily on the New York
balances and this directed renewed at
tention to the possibilities of further
requirements to conserve the interior
banking position. The easeing dis
count market in London and the down.
ward course of foreign exchange rates
awakened discussion of possible i'm
ports of gold.
United States bonds were unchanged
on call
Bonds were irregular. Total sales,
par value, $1.760, 900.