Richmond daily palladium. [volume] (Richmond, Ind.) 1905-1906, 1906-02-05
STOCKS SHOWED DECLINE

New York. Feb. Ave have had
this week an active and widely fiuc-
tuating market. 1t opened with
sharp decline, precipitated by threats
from Washington of adverse railroad
legislation. Subsequently these fears
were found to be somewhat exagger-
ated, but the selling movement was
started and liquidation ensued, which
could not be checked until several
of the active stocks had shown Sc
| we're declines: Amalgamated Copper
1914, Anaconda, p, Reading, 1872,
Tennessee Coal & Iron, II, Smelling
s7s, Chicago & Northwestern, 934,
Colorado Fuel & Iron IT'S, Northern
Pacific 95s, Brooklyn Rapid Transit
S34, Canadian Pacific 6, Louisville &
Nashville, 6, Metropolitan Street
Railway, g. Union Pacific 5, st. Paul
and New York Central 45s. Other
active shares also had considerable
declines. This downward tendency
was further accelerated by what APP
peared to be increased London sell
ing. On Wednesday, however, the
decline was suddenly checked by an
unexpected burst of activity and
strength in the copper stocks, which
was traced to persistent rumors OF
closer relations between the Anal
gamated, United Copper and the
American Smelling Company, which
practically dominate the copper sit
uation in the United States, in which
case it will end one of the bitterest
and most romantic industrial wars in
our history. The strength resulting
from these rumors show the extent to
which the market is influenced by
merger reports; and, as other import
ant deals are still in prospect, the
market must continue to be more or
less influenced thereby. These deals
being usually under the control of
powerful financial interests, it fol-
lows that the latter will use their ut
most endeavor to prevent any serious
reaction in the market that might in
terfere with their. plans. Another
supporting influence is the fact that
important new issues Of both stocks
and bonds are in process Of negotia-
ton, simply waiting opportunity for
/ hot
banking houses will cooperate in
preventing any violent reaction until
/ these new securities find a resting
place. 1t is quite possible that in
vestors have been purposely waiting
for these new opportunities, since or
binary investments have been much
neglected and are altogether too high
to attract the careful buyer. The
close Of the month witnessed the Of
fering of several important issues
and others may be expected to short
ly follow while conditions favor.
Perhaps the most unsatisfactory
element in the situation is the mo-
mentary outlook. Easier conditions
prevail than at the beginning of the
year, but the outlook is still con-
fusing.
| The large credits obtained abroad
at the time Of the last monetary
squeeze are now maturing and will
have to be either renewed or other
wise provided for. Were it not fol
Russia s impaired financial condition
and the rumors that Russia contem.
plates new heavy loan of 100000,
600 these obligations might be ex-
tended; but with affairs as they are
it seems likely that many of these
loans will have to be retransferred
to New York, and no doubt this part
ly explains the expansion In the loan
item in last weeks statement. The
situation abroad is also made more
sensitive by the Morocco situation
i The outlook is for an active and ir.
regular market. For the first time
in many weeks short interest is de.
yeloping, which in itself is an ele
ment of strength, and the technical
situation Of the market has beer
further improved by recent declines
and liquidation on the part of a few
inexperienced plungers. At the mo
ment the market looks fairly strong
but heavy realizing by big insiders is
probable at any time.
Il HENRY CLEWS.