The San Francisco call., 1905-01-15
STOCKS TAKE
SUDDEN JUMP
Activity in Market Due to
Rumors of Railroad Read
justments and Changes
HEAVY SALE OF BONDS
Fear of Tariff Revision and
Congressional Action on
Rate Question Has Effect

Rate Question Has Effect
NEW YORK. Jan. 1.-THE sudden
revival of animation in Union Pacific
which stirred the late stock market
yesterday was continued to-day, send
ing the price of the stock to 119%.
Northern Securities on the curb went
to a new high record in company.
There were floods of rumors of sup
posed plans for readjustment of the
railroad situation, growing out of the
of the company, but the
only actual news was the tip circu-
lated from uptown speculative quar-
ters that Union Pacific was to touch
120 to-day. There was strong SYM
pathetic movement in Southern Pacific
and ST. Paul. There was large buying
of United States Steel preferred and
Copepr also.
Elsewhere III the list the strength
was moderate and there was some
pressure to realize on the, advance.
This was especially manifest after the
appearance of the very strong bank
statement. Not only was the large in
flow of currency from the interior for
but also that of last week, which failed
to show in last weeks statement owing
to local shifting of cash holdings. AS
result this weeks s statement shows
a growth of over $15,000,000 in cash
holdings. There was at the same time
a contraction of $5,405,90 in the
loan account. The net result was to
bring up the surplus over legal reserve
requirements by $12,S51,025. This
,ro<J
tremely easy money market, is likely
to enhance the outgo of gold, to which
is soon to be added remittances to
Cuba for the final installment on final
subscriptions to the Cuban loan, which
may call for upward of $10,000,0 900.
Excited buying of Union Pacific pulled
UP its related stocks to the top level
toward the end of the session, but
realizing made at other points made
the closing irregular and very active.
Total sales of bonds to-day, par value,
$4,915,000.
FEELING THE MARKET.
Stocks have backed and filled this
week on a small volume of dealings
which has comprised little more than
the tentative operations of professional
traders to find the cause of the market.
There has been no real motive power
in the market owing to profound neg
lect by powerful trading interests and
the outside public. Much discussion of
the causes of the lack of interest in
the market has failed to bring about
any general agreement, but number
of contributory causes have been COM
monty accepted. The sensitiveness of
speculative sentiment to the settle
ment of the legislative programme at
Washington emerges with tolerable
clearness.
Thus prices advanced with some de-
c:sion on Monday morning when it
was generally reported that the Satur-
day conference of political leaders had
resulted in an agreement that it would
not be practicable to undertake any
prominent new measures at the pres
ent session of Congress. On the other
hand, the most distinct decline of the
week occurred on Thursday, when the
traders were confronted with the ex-
plicit report that the President had
determined to press for prompt action
a measure for the fixing of railroad
rates by Federal authority.
The financial district has it's varieties
of sentiment on the merits of the
measures proposed. Aside from the
effect on securities which would be
subject to special influences by
changes in tariff schedules, especially
during the period of discussion upon
those changes, the readjustments in
beth which go with changes in rates
of duties are expected to beget
hesitation for time. Another feat
IRE of the outlook which causes un-
certainty is the measure of the future
resources of the money market to the
new capital issues which are be-
lieved to be forthcoming in large vol
ume.
The funding of the large issues of
short time notes made by the railroads
last year during the period of 'indi-
gestion" of securities is to be provided
for. These funding operations will
not provide new capital to the rail-
roads, as the proceeds of the notes
have been mostly expended and addi-
tional issues are looked for to pro-
vide resources for continuing outlay.
SHIPPING OF GOLD.
The present extremely easy condition
of the money market seems to promise
conditions for the COM
ing fiotations. But factors are at work
which may modify the usual accumu-
lation of banking reserves in New
York in the first part of the year.
There is no present limit in sight to
the outgo of gold from New York,
which is in progress toward Paris,
South America and to Japan. 1t Is
uT2eQ InaI Silly QCliidtid All iOciiS WiliGI
would raise the money rate would
promptly stop these various move
ments, which are due to special in
ducenents In the way of allowance for
interest But the sentimental effect of
exports Of gold is felt, as is invariably
the case. Some weight must be given
to the course of recent events in the
banking world, at least in their In
fuence upon the public mind.
This weeks run on a bank doing
business among the foreign population
on the east side of the city was at
tributed by an official of the bank to
the sensational interest attaching to
the story of Mrs. ChadwiclS's
exploits and to the discussion
of the alleged practice of over
certification of checks by the great
downtown banks, which was awakened
by the testimony in a lawsuit growing
out of the exploiting of a mining stock
in the curb market.
1t cannot be said that the financial
world itself is in any state of dis
oxyor banking f1racticaS oyay.