  Raman scattering experiments on stoichiometric, Mott-insulating LaTiO$_3$
over a wide range of excitation energies reveal a broad electronic continuum
which is featureless in the paramagnetic state, but develops a gap of $\sim
800$ cm$^{-1}$ upon cooling below the N\'eel temperature $T_N = 146$ K. In the
antiferromagnetic state, the spectral weight below the gap is transferred to
well-defined spectral features due to spin and orbital excitations. Low-energy
phonons exhibit pronounced Fano anomalies indicative of strong interaction with
the electron system for $T > T_N$, but become sharp and symmetric for $T <
T_N$. The electronic continuum and the marked renormalization of the phonon
lifetime by the onset of magnetic order are highly unusual for Mott insulators
and indicate liquid-like correlations between spins and orbitals.
