Evening star. [volume] (Washington, D.C.) 1854-1972, 1898-12-28
FINANCE AND TRADE
Sharp Break in Prices of Stock at
Closing Hour.
CALL LOANS JUMP TO 6 Per Cent
Profit Taking and Some Short
Selling Follow.
GENERAL MARKET REPORT


Special Dispatch to The Evening Star
NEW YORK. December 2S.-The advance
in prices was resumed during the opening
hour this morning, but the demand was
less urgent and the volume of business
slightly reduced. London cables reflected
buoyant market for Americans and a
considerable investment demand. Advances
in the foreign market extended to a fun
point in some instances. and the newspaper
reports of Americas wonderful strides to-
ward commercial expansion were quoted
extensively arguments favorable 10
American investments
The tendency toward profit-taking was
too pronounced for the local market to
develop the full significance OF this refiec-
ton of foreign confidence. The very tempt
ing profits of the tape were reduced into
possession by the more conservative ele-
ment and traders Offered few stocks in
the hope of forcing the long-delayed resc-
ton.
An advance In call money rates to 3 per
cent was taken advantage of in this con-
nection- The records of previous seasons
make such an excuse for lower prices seem
absurd. but there are many prudent inter
5sts who favor lower level of prices as
being more certain and logical basis of
future Improvement.
The extension CT time loans for three and
five months. which has been noticed in GER
tain quarters during the last few days, is
more significant than the cay to day change
in call rates
The fractional declines which followed
the selling were not entirely commensurate
with the effort, and the buying at the con-
cessions was generally better than the SELL
ing. The larger and more influential in
terests in the market continue to express
confidence in the future of the security
markets
Overtradns and pyramiding on 3 and >
per cent margins is usually a source of
danger. but there are occasional exceptions
even to this generally condemned method
Of money making on the theory that the
percentage of risk is superior both to the
percentage of margin and probable profit.
The protection of large lines by large
operators sometimes protect the large lines
of thinly margined accounts. Just now
there is considerable reasoning of this
character, but the wisdom of it is mootei
The industrial stocks ere unanimously
conceded to be the danger spots in this
market. Unprecedented advances have
been recorded in many of them. and merit
has not always kept pace with the advance
in prices.
American Sugar is weak on trade condi-
lions, ana TIE fight for control of the suga~
markets or more equitable division of
them is not over. This property may al
times lead its neighbors into Improbable
ACTIVITY.
The Federal Steel issues were sold off
sharply during the afternoon, some stop
orders helping TO emphasize the natural
consequences of realizing. The banks have
not become entirely reconciled to the col
lateral value of these issues. as claimed by
clients. The advance in call money conse-
Quently invited an attack
The granger shares, the Pacific stocks
and the overbought speciaties in all de-
partmcntS declined from | 10 per cent
under a spirited selling movement. which
reached its height during the closing hour
Loans We're made as high as g per cent
during the last hour.