Evening star. [volume] (Washington, D.C.) 1854-1972, 1896-01-06
Wall Streets Opposition to the Pop
ular Loan Idea.
REDUCTIONS THROUGHOUT TIE LIST
Doubt Expressed Regarding the e.
ficacy of the Bond Issue.
GENERAL MARKET REPORTS
Special Dispatch to The Evening Star.


NEW YORK. January 6-That Wall
street has been sincere in its opposition
to the popular loan idea was clearly demon
strated this morning. The governments
announcement Of such a loan was generally
regarded as an incentive to tighten specu-
lative responsibilities and prepare for lower
prices.
The first half of the session resulted in
uniform reductions in all parts of the &C.
tive list. The trading was largely pro-
fessional, however, and is subject to sud-
den changes in character
The necessity for restoring the federal
gold reserve to normal proportions is, of
course, the real object of the proposed
loan, but there are many experienced imam
cierS who doubt the efficacy of the method
row officially sanctioned. There is no rea-
son why the gold to be applied to the pur-
chase of these bonds shall not first be with
drawn from the several subtreasuries and
pad back subsequently for an interest-bear-
ing obligation. Instead of the gold reserve
pelng increased by this process, the gov
eInraents interest liabilities Will monopolize
the addition.
Tie several Reorganization schemes now
IL various stages OF execution may serve a
good purpose at this juncture. The more
important of these schemes are I'm charge
OF MI Morgan and his friends, and a de-
Ginning market is a most undesirab bile one
for the floating of new enterprises. IT Is
therefore considered probable that an eff
tort VIII be made to sustain the market
even though an opportunity for forcing a
low rate on the new government bonds is
sacrificed in the process.
IT is generally conceded that the new loan
VIII go to syndicate Of strong bankers uiti-
mately. and with the assurance that the
drain on the country's gold will be reduced
to minimum.
During the thirty-day period which must
eiapse WITHDRAWALS Will be made, however
by those who believe in the possibility of
smaH allotments The right to reject any
hlds which the government reserves will
serve a double purpose, the demand for n
popular loan will have been satisfied and the
bonds Will go into the hands of one Of the
two syndicates known to be in the market.
In the opinion Of the street the purposes of
the loan would have been more beneficial
had they been more direct.
The arguments show that operators are
divided as to the result. and q period of
uncertainty, with values extremely sensi-
looked forward to during the balance Of the
month
The lowest prices Of the day were record
ed during the last hour Of business, pro-
fessional bear traders being credited with
the bulk OF the transactions. A large short
interest has undoubtedly been created dur
Ing the day and may at any moment fur
Hlsh the incentive to an upward movement
1t seems probable that application may be
made for clearing house certificates tomor-
row, but not in any significant amounts.
1t will take several days for the country
to decide upon the actual merits of the
loan, and today's fears may be entirely
overcome before the week closes At pres-
ent, however, prices are not ENCOURAGING