The Washington herald., 1906-12-12
STOCKSIN SHARPRISE
Market Very Strong After
ShaW's Plan Is Known.
FUNDS ARE FREELY OFFERED
London Houses Buy 10000 shares,
and a Much More Cheerful Tone
Prevails ON Wall Street and in
British Metropolis - Reaction Re-
suits in a Weak Closing.

New York, Dec. u.-AIthough il was a
matter Of general expectancy yesterday
in the financial district, that within
twenty-four hours some additional plan
Of Treasury relief Of the money situation,
would be announced at Washington, and
the stock market has been strong for
several days in this belief, the definite
PRONUNCIATION of the terms of the Treas
uTy aid late yesterday afternoon, result
ed in a sharp rise in the price OF stocks.
For one thing. there was an imme-
diate and comparatively free offering Of
funds in the financial district by money
lenders; that is to say, call money instead
of being held as it was throughout the
greater portion of last week at above 20
per cent. could be readily obtained to-
day below 10 per cent Most OF the days
loans of this character were, in fact, ne
gotiated at 81 per cent, bank renewals
being generally made at this figure
Toward the close Of the day, owing TO the
active dealings in stocks. higher rates
were demanded. London houses We're
buyers of a quantity of stocks here esti-
mated at more than $1,000 shares. al
Though II was not until several hours Of
the stock exchange session had passed
that the quotations for the leading stocks
here rose TO the advances early made in
the London market
While a much more cheerful tone has
been evident in financial sentiment in
London for several weeks owing to the
decided Improvement in monetary cOndi-
tions there, the buying Of American
stocks there yesterday and to-day has no
doubt been largely by operators on this
side, who because of the disparity in
money rates between the two markets.
nave been gradually shifting back their
accounts again to the English capital
Reaction Affects Market.
Even at to-day's high rate for carry
ing charges for American stocks of S1z
per cent. in the London market. It costs
less there to buy these securities and
hold them for a fortnight than it does
here or did up TO to-day
Although the advance in the market
here was interrupted by the usual period
Of midday dullness, prices did not de-
cline and the rise was resumed in the
afternoon. In the last hour of business,
however the money market began 10 be
affected by the expanding speculation,
and call money rose TO y per cent.
This brought about a reaction in the
market that caused prices TO close con-
siderably under their best but as IL was
gains of more than a point were common
in the principal stocks. with such excep-
tiOnal advances as 5-S points in Canadian
Pacific and 81 points in St Paul
Rumors of larger issues Of each Of
these stocks so as to afford rights TO
existing stockholders were the reasons
assigned for the rise in both cases The
stock whose movement throughout the
day was rather puzzling was Reading
common. II was active and strong in the
earlier part Of the day and was cor
respOndingiy weak and active later on.
The old stories Of a declaration Of an
extra dividend or a large increase in the
regular dividend on the stock, or both. at
the approaching meeting of the Reading
directors on December 19. were again
heard, accompanied also with the Oft
repeated stories of a segregation. so far
as stock ownership was concerned. of the
company's coal lands
Rise Surprises Wiseacres.
The definite cause OF the break in the
stock in the afternoon appeared to be the !
selling of 5000 shares of it by a single /
commission house.
The rise in the market to-day was per
haps d little surprising. in view of the SEN I
NttA1AiN SNAt any Acu III ~ ali street
commission houses that the actual ale
Walton Of the money situation by the Sec /
retary of the Treasury. as contained in !
his relief measures made known within /
the last week. was not likely to be great [
from the point Of view Of spectators for 4
the rise. This was borne out by the fact 1
that time money rates to-day were little 1
If any lower than they recently have been. (
On Saturday Of this week advance pay
ment on Sl2000,000 interest on government !
bonds due in the first two quarters OF next /
year viii be made by the Secretary Of the /
Treasury. and will. obviously, be scattered /
all over the country. The Secretary now
says that he will put $10,000.O 900 in the na- /
tionaI banks at once, but viii require half I
of it to be paid back on January % and /
half on February l. and. moreover, out !
of this allotment only 81. 800 900 is TO be de- /
posted directly in this city.
It is recalled. too, that on or before the /
1st of February the time period on a large 4
quantity of special deposits previously /
made with the banks by the government /
viii also expire. II is true on the other I
hand. that the money thus placed with the /
banks in interior cities will flow to this /
city. attracted by the high bid for funds /
made here, and that the deposit Of money 1
viii at any rate stop the withdrawal of /
funds for Western and Southern uses from |
the local banks
Remittances VIII Be Slow.
Yet fear was expressed to-day that
pressure upon the banks in the interior
for funds for home uses had reached 1
such proportions that remittances to
New York, although in due time they
might be made, would not be made
speedily. In the second place. the Secre-
tary of the Treasury refuses to redeem
81. 000,000 Of the per cent bonds OF !
1907. falling due on July next. at a price
of IOl
Coupon bonds are to be redeemed at
lO2, this merely because a coupon is
shortly TO fall from them. As the market
valuation of the bonds is slightly above
the redemption figures great induce
ment certainly is offered to holders
10 sell. but the opinion prevails that the
full S100G0.000 of bonds would be turned
into the subtreasury, although the money
disbursed for them might again be scat
tered over the country. being put out I'm
lump sums in this city.
feature of the Treasury's offer in
this regard which perhaps excited more
comment than anything else in the finan-
cial district to-day was the statement
that the Treasury would not accept. more
that Sl000.000 in bonds from any single
Institution. Wall Street was not slow TO
grasp the peculiar significance Of this
stipulation.