The San Francisco call., 1905-01-08
MARKET CLOSES
WEAK and Dull
Failure to Appear of the
January Reinvestment De-
mand Disc0urages Brokers
TONE OF INDIFFERENCE
Fall of Port Arthur and De-
cisiOn in Northern Securi-
ties Case Cause a Squirt
TONE OF INDIFFERENCE

4NG w 4OIxAp o61As AASC6 VI 6SOCA6
were inclined to yield again to-day, but
the pressure was not urgent, and any
evidence of support in the market tend
ed to check the selling. Such support
developed for Erie and Reading during
the course of the first hour and a prac-
tically complete recovery from the OPEN
ing declines was made. There was
good demand for Illinois Central, which
was accounted for by unsubstantiated
rumors of an intended increase in the
dividend rate. At the recovered level
of prices the demand became so languid
as to cause fresh discouragement over
the failure to appear of the January
reinvestment demand, and prices
sagged away again at the last, making
the closing weak and dull.
Disappointment was professed over
the bank statement, but the showing
was not calculated to produce more
than a nominal influence with the ex-
treme ease ruling in the money market.
The fact is not doubted that currency
has started to move in a strong tide to
this center, and the failure of the bank
statement to reflect 1t is attributed to
cross currents in the movement, which
confuse the computation by the aver
age system. The Metropolitan stocks
were weak from special causes, nota-
bly, the threatened competition for their
suburban traffic, and their sharp de-
clines had sympathetic effect on the
rest of the market. There were persist
ent rumors, such as have circulated for
some days, that the report of United
States Steel earnings for the final quar-
ter of the year would prove less salts
factory than preliminary estimates had
promised.
There was much discussion of the
conference of political leaders which
was announced to assemble at Wash
ington during the afternoon to con-
slider the programme for Congressional
action, including legislation concerning
corporations and tariff revision.
SALE OF BONDS QUIET.
The weekly mercantile reviews of
fered no grounds for selling stocks, and
the enormous figure of the December
anthracite output was a fostering in
fluence upon the firmness of the coal
ers. The favorable industrial news
failed, however, to stimulate any> de-
mand for stocks, and the market for
bonds was also quieter than during the
early part of the week.
Total sales of bonds, par value, ST.
500, 900.
The Stock Exchange contingent start
ed the new year on Tuesday with
number of important happenings to ac-
count for, and spent rather a busy day
on that day. But the subsequent deal
ings showed large abatement of spec
ulative interest and growing tone Of
hesitation and Indifference. The fall of
Port Arthur and the decision of the
Northern Securities injunction suit in
favor of the company had long been
counted on. But they were responsible
for a squirt in the market nevertheless.
The Interpretation of these events was
evidently a favorable one from the
point of view of the financial world.
But the natural effect of realizing sales
with the good news out was to cause
some reaction in the level of prices.
The London financial public has
held a clearly defined conviction that
the fall of Port Arthur would serve
to hasten the end of the costly strug-
gle in the Far East and bring to the
world the benefits of an early peace.
This opinion has BEEN somewhat modi-
fed by the course of events during the
week and the apprehension has grown
up that the termination of the war is
still indefinitely in the future. The
disaster to the Russian arms has
raised some misgivings also as to the
success of the forthcoming Russian
lean and there has been some liquida-
IlCn IN the LOnuOn market Tor Paris
account, which is supposed to be due
to the large commitments of that CEN
ter of capital in Russian securities.
This has caused a reflex depression
to some extent in other great centers
of capital.
PLANS OF RAILROADS.
In the case of the Northern Securi-
ties decision also the natural move
ment of taking profits has had added
influence from the failure of some of
the expected consequences developed.
In the first place the determination to
appeal the case and the stay thus eff
fected in the proposed litigation of
the company comprises an indefinite
prolongation of the litigation. 1t had
been hoped that a plan of settlement
had been arranged that would be pro-
mulgated promptly on the reaching Of
a decision by the court.
The belief continues general in the
financial world that great projects are
working out in the railroad world and
it is commonly expected that the large
accumulation of money resurces in
New York this spring, which seems in
evitable, will be taken advantage of
to secure the additional capital re-
quired for these projects. Rumors of
their form are vague and various, but
stress is laid on the supposed extension
of the Rockefeller interest in New
York Central and on the admitted in