Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-12-18
Striking Dual Conditions Of
Teday's Market.
A FINANCIAL PARADOX
DECIDEDLY WEAK ON ONE HAND,
STRONG ON THE OTHER.
Early Transactions Showed Losses
Quick Response to Banking Trou-
BILE in Chicago.

Special Dispatch to The Star.
NEW YORK, December 1S.-According
TO various points of view the stock market
At the opening of business this morning
might have been described as decidedly
weak on the one hand or pronouncedly
strong on the other. To begin with the
carly transactions showed losses which ex-
terded from fractional limits up to nearly
eight points in the most active stocks.
IT. all the present circumstances of the
stock market, IT could not have been re-
garded as surprising II this mornings sud-
de- and sensational news from Chicago
had brought about very much more serious
declines than occurred. The stock market
Is peculiarly sensitive to banking troubles,
for amply sufficient reasons. The market
has shown a surprising indifference to the
many serious developments of the current
year of an unfavorable character, but
whenever anything relating to the solvency
of banking institutions has occurred. the
respons has been quick and pronounced.
Wall Street Surprised.
Wall street was taken wholly by surprise
by this mornings announcements respect
ing the banking difficulties at Chicago. and
considering their magnitude, 1t must be
said tnat it received very little explanation
during the course of the business session
as to the reasons for the placing OF three
large and important financial institutions
In liquidation.
1t was. however. informed IN no uncer-
tain Tone that deplorable as the disas-
ter was from financial viewpoint the
difficulties would be localized. and that
there was no occasion whatever for the
expenditure of what might be described as
personal sympathy In the general crcum-
stances of the case.
1t appears at all events that the leaders
of the Chicago Clearing house Association
have acted with the most highly common
dable courage. promptitude and public
spirit, and that they are entitled to the
ratitude of the whole financial community
OF the country for the stand which they so
quickly assumed
Money Exceedingly Active.
Reverting to the local stock market, 1t
might be said that at its present levels and
in view of all the circumstances relating to
It. such price movements as occurred there
might have taken place even in the absence
Of the banking trouble at Chicago. Despite
the strong showing made In Saturdays
weekly bank statement, money ON call was
exceedingly active, opening and loaning for
the most part during the day at and above
10 per cent.
This was probably In part reflection of
the Chicago incident. because in addition to
the restoration OF reserves set forth in Sat-
Urday's bank statement the banks have
gained heavily in their operations with the
subtreasury since last Friday. this morn
Ing figures setting forth favorable bal
ance of nearly 81 800 900, as compared with
g loss in the same period last week of
S61i00O.
In spite of the activity in the local money
market, sterling exchange advanced very
sharply and was correspondingly weak at
Paris.
London Market Depressed.
Tentative inquiries for gold bars for ex-
port were made at the assay Office. The
London stock market was generally de-
pressed. American stocks suffering spe-
officially by reason of the financial trou-
bles at Chicago which led to heavy SELL
ing there for New York account These
stocks were quickly thrown back upon
the local market, the arbitrage houses
hainK SellerS here balance of lInua I'd