Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-12-17
Industrials and Railway Lead
ers Featured Market.
SOME HEAVY SELLING
SPECULATION OF THE WEEK
SHOWED GREAT ANIMATION.
Call Money Cheaper, Which Stimulated
Dealings-Interest for Short-Time
Loans at Premium.


NEW YORK. December 16-There was
considerable confusion in the price move
Tnent during todays active stock market,
and sentiment in speculative circles was
considerably unsettled as the result There
were spots of progressive strength still,
principally among industrial stocks and
some of the high-grade railroads of which
the floating supply is small. On the other
hand there was active liquidation manifest
at one two points. notably in Southern
Pacific and in the Rock Island and affiliated
stocks
The official inttmation that the Rock ISL
and preferred dividend was to be suspended
In January was the sufficient explanation
of the weakness in the Rock Island shares.
The heavy selling of Southern Pacific was
attributed to speculative holders who had
counted upon early establishment OF
dividend payments on that stock. and who
found cause for the abandonment of their
lapses. In the language of the annual re-
port to the stockholders.
In the body of the list there was evil
deDCe of free selling to take profits under
cover of the various points of strength. An
incipient advance developed after the ap-
pearance of the bank statement, but prices
subsequently weakened to the lowest and
the closing was irregular and not far from
the low level.
Banks Showed a Surplus.
The banks showed the establishment
of surplus in reserves amounting to near
ly 100000. The improvement in their
condition was principally due to the seal
ing down of their deposits, which resulted
in a loan contraction of 81, 756. 500. The
cash Increase of $3,120,SOo proved about as
expected. Yesterdays payments of jan
uary ] government interest and of import
ant dividends including the $4,000, 00C
Standard Oil disbursement will accrue to
the benefit of next weeh market and fig
ures in next weeks bank statement.
But very heavy demand has developed
for remittances to London by next We'd
nesday's steamer, which is the last to reach
London IN time for the end-year settle
ments. There are large amounts of ex-
change bills maturing at this time which
were put out early in the period of higher
money to take advantage of the profitable
rate here. The possibility of gold going
out next week is therefore under discussion
Total sales of bonds par value, 81. $4,000.
Speculation Created Large Volume.
The speculation of the week has shown
great animation and large volume, but has
been greatly congested in individual stocks
which have been brought forward into
pre- minence by rotation The average daily
ure of the year. The speculation has borne
every evidence of a highly centralized orig
in, and careful organization and skilfull
system has marked all the market opera
tons
The conviction has remained general
therefore. of the predominancy of very pow
erful and habitual market operators in
making up the large transa actions in the
market There has been perceptible how
ever, some growth of outside interest in
the market, attracted by the undertaking
fUlfillment of the tips" and promises al
most invariably disseminated beforehand
in the great market movements of the
week. These forecasts have constituted the
great part of the news of-the market, spe-
cial Developments affecting individual stocks
or changes In general conditions being
scarce and not receiving much attention.
The irregular movements of the market
at times and the occasional setbackS In
ton by large holders In the taking Of prof
its and the degree in which prices have
been affected by this indicates good pow
e. of absorption. Such digestive process
is viewed with approval by the more con-
sentative element as correcting a previous
abnormal disregard of all such customary
caution in the leadership of a market and
the burdens involved In accepting offerings
and sustaining prices.
Advances Showed Manipulation.
The unbroken course of some of the re-
cent advances In the market have beer
iudulpu-
IatIve character, which promised evil con-
sequences when the inevitable effort tC
convert profits into cash by selling stocks
should be attempted.
On the other hand. It usually follows
that the power of a market organization to
control prices diminishes with the distribu-
ton OF It's centralized and pooled holdings
In stock market parlance stocks go from
strong into weak hands The motive of the
organization for supporting the market Is
not so strong when the sale of their hold
ings has been effected The new holders
lack the resources. and usually the skill
and experience to conduct market opera
lions with the same success, and they are
not able to operate In concert to the same
degree.
Aside from the action of prices in the
market several other indications point to 6
cor siderable distribution of holdings having
been effected by large market opera atoms
The London market reports an enormous
demand for calls on American securities
these calls to mature after the first o.
the year. This IS open to the Interpretation
Of an Insurance OF profits for those selling
stocks here, because OF the fear of being
placed at disadvantage in holding stocks
by another spasm in the money market
before the end OF the year.
Commission Men Made Loans
II "a known also that some OF the com
mission houses which had provided them
selves with large loans on time some time
ago ara lending the proceeds of these loan!
on call TO other buyers of stocks. The in
ference is suggested that they have sole
their own holdings OF stocks during tnt
recent high level of prices prevailing INT
tone of the money market is also affected.
Money on call, in fact, has been cheaper
again this week. with a potent influence II
stimulating the furious speculation FUNDS
have been attracted TO New York by the
high rates prevailing. domestic interior
points and Canada both furnishing sup
plies Bankers have also sold biiis In tht
foreign exchange market TO some extent tc
Yield additional resources. The payment or
Friday of the January 1 government inter
est, in anticipation of its maturity, has
also been relied upon to furnish some addi-
ttonal supplies of money
The course of exchanges on New York
both foreign and Interior. have conveyed ar
admonition that the retention OF these
funds in New York Is dependent on the
maintenance of the high money rate. Ex-
changes have tended TO move against New
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