FALL IN STOCKS.

Dominion, Volume 1, Issue 82, 31 December 1907, Page 5

FALL IN STOCKS.

BIG DEPRECIATION. OVER THREE MILLIONS FOR THE YEAR, DT TELEGEAPH--PItESS ASSOCIATION—COrYBIGHT. London, December 29. Three hundred and eighty-seven securities dealt in in the Stock Exchange depreciated in 1907 to the amount of £342,000,000, or an average fall of 9 per cent. The figures of the fall for the year are tremendous. ' At the tamo time, the "Bankers' Magazine," reviewing the period from September iO to October 19, had already begun to' note hi more healthy sign than the wholesale panic, movement of an earlier period. Writes the "Bankers' Magazine.":— Although not presenting .in the aggregate so striking a movement as that whioh has characterised some recent valuations, the course of Stock Exchange values during the pa-st month has been interesting. The financial developments in the United States, and tho continued apprehensions concerning the labour situation in the railway industry at Homo, have been important factors affecting all markets, lint it is noticeable that during the past month there has not been the same wholesale movement in values in one direction or the other. In other words, conditions have been more normal, in the sense that markets have moved more independently of onch other, and have—at certain points especially—been governed by ,the ordinary laws of supply and demand. On balance, the aggregate value of our list of representative securities shows a decrcaso of nearly 20 millions sterling, tho exact figures being as follow:— Aggregate value of 387 representative securities on Sept. 20, 1007 .£3,531,057,000 Aggregate vnlue of 387 representative securities on Oct. 19, 1907 ... 3,500,083,000 Decrease ... .£25,874,000 The merest glance at the detail'-, of the valuation shows that tho whole of this decline is more than accounted for by a shrinkago of 10 millions in American railroad securities, of more than three millions in Enplisli railway stocks, and of 14 millions in mining shares. In all three instances tho caajses are apparent on the surface, and tho only word of explanation which may be added is that the fall in mining shares has, of course, been largely due to the great slump in tho pa-ice of copper. Notwithstanding the heavy shrinkage of value? in the department? just referred to, it will be seen that somo otluer sections have struck out n path of their oral, and tho most favourablo featuro of the month has been a steady improvement in hijyi-class securities, Consols and similar stocks showing a considerable rise for the month. This feature is tho moro satisfactory, as there seems to bo littlo reason for doubting that it has, on the whole, been based on genuine investment purchases. Similarly, prior charge stocks of English railways have advanced, notwithstanding the adverse effect produced upon the junior securities by tho fears of a strike. , In the miscellaneous markets, bank shares have been a particularly strong feature, and in this case the movement ; is probably duo to expectations of good results lor the halfyear, arising out of the continuance of comparatively dear money. Industrial shares havo shown some strength, but iron anil steel companies' shares have formed a notable exception.