Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1900-12-17

NEW YORK, December 15.-Stocks--
"A conviction gained ground over night
that yesterdays speculative outburst,
involving as it did high grade railroad
stocks, had more significance than the
apparent imminent relief to the money
market on the forthcoming enormous
disbursements by the government and
corporate interests. The street having
in mind the successful deal i'll the an
thracite coal industry, was inclined
TO regard with some credence the
various rumors afloat as to absorption
or representation in governing boards
of railroads having favorable geograph-
lcal locations. This policy for COM
munity of interests is expected to
bring about more stable economic con-
ditions and reduce to a minimum the
possibility of rate wars. AS far as the
rank and file OF spectators were con-
cerned, the expectation that the much
heralded pinch in money rates would
not be realized was sufficient to re-
vive the bullish spirit which has been
dominant for some time on this ac-
count. Londons response to our buoy
ant close of yesterday was encourag-
ing and during the course of the day
the foreign market bought about $4,000
shares. At the opening pronounced
advances were made in various stocks,
but depression was noted in others,
and it was not till after the publication
of the bank statement that the adj
vance assumed any violence. The
statement showed an increase in sur
plus reserves of 1924 $50 owing to re-
duction of deposit liabilities of $751;
376, 500, and a smaller decrease in cash
than had been looked for, say 1885,,
900 A decrease in loans Of $685., 800
was somewhat ineXplicable, but many
have been due in part to calling of
loans early in the week. This show
ing was regarded with favor and the
market became very animated and
broad. The demand and most sub
stantial gains were made in the Paci
fics, ST. Paul, Sugar, Atchisons and
Brooklyn Transit. Union Pacific and
Northern Pacific ruled at about parity
until just before the close, when ex-
cited buying of the latter rushed ii up
to 7619, compared with 1878, yesterdays
close. The earlier heaviness of the
steel stocks was dispelled and they
closed with small gains. Speculation
left off with buying very confident and
the tendency upward.
All the world looks to January l as
the annual settlement period for col
lection and for payment. AT no other
time of the year Is SO much money
needed for exchange and such large
demands made for credits. Those who
have their own resources available,
while not active bidders for loans, re-
duee the available credits by putting
their money to their own use, which
might otherwise be available for lend
ing. The sum of the obligations to be
met on January next IN the United
States is greater than ever before. A
large proportion Of these obligations
are for interest and dividends on ali
sorts Of securities, representing a dis
tribution of earnings from profitable
business. The fact that the sum is the
largest this year in the countrys his
tory is therefore conclusive proof of
the country's prosperity, but the fact
is not altered that this process of
disbursement of earnings and profits
makes corresponding Requirements on
all the vast and complicated machin-
cry of exchange and money. The spe-
cial bearing of this condition on the
stock market lies in the fact that the
capitalists choose to place loans for
use in specializing il stocks only after
every other form of demand for money
has been fully supplied. 1t is not
strange, therefore, that the stock mar
ket is keenly sensitive to the showing
of the surplus reserve item of the
banks, as the shrinkage of that item
represents the certain prospects of
calling Of loans and forcing to sale of
the securities held with the borrowed
money, and forced the sale at a time
when the money pinch is in itself an
indication Of active trade and prosper
tty. Holders Of securities who own
them outright are rather inclined to
add to their holdings at such a time
than to part with them, SO far as their
means will allow.
The stock market during the past
week has shown its constituencies to
the gathering clouds on the horizon OF
the money market and the nervous
ness OF speculative holders has brought
large offerings Of stocks on the mar
ket. But st the same time there has
been a remarkable demand for increas-
ed holdings of particular stocks. which
have made extraordinary advances,
thus keeping up the tone of the gen.
eral market while the realizing offer
ings have been well absorbed in the
confidence begotten by the generally
prosperous conditions of business and
the eager demand for particular stocks.
The scale of this particularized buying
and the substantial character of the
interests back OF it caused the plain
1ntimation of the coming construction
OF the next money market to be prac-
tlcally ignored at times during the
week, in the hope that some means Of
relief was to be forthcoming not gem
orally known to the public But as
the rumors of coming purchase OF
the government bonds by the United
States treasury for the sinking fund
and OF special gold import operations
were successfully denied or discredit-
cd, the speculative element took heed
to the constant in-road making upon
the bank reserves and liquidated their