The Washington herald., 1906-11-21
MARKET In REACTION
Volume of Dealings Show a
Great Falling Off.
ILLINOIS CENTRAL IS STRONG
Louisville & Nashville and Mexican
Central Also Rise SharDly-LondOn
Reports Gloomy, Owing to With
drawaI of Gold for south American
Shipments-ChicagO Gas Is Up.

New York. Nov. 9o.-YesteTday was the
sixth consecutive session Of the stock ex-
change in which prices had closed higher
each afternoon than they did on the day
previous. The standard stocks in this
period had risen hve points, a very large
advance without a recession whatever
and the reaction, therefore. that occurred
il the market to-day was regarded by the
majority of Unimpassioned observers as
being more or less overdue. although the
decline did not become pronounced until
in the afternoon, and the market in tSie
forepart Of the day was generally irregu-
lar
Large gains made in the price Of corn
stocks. with an outbreak of activity in
various low-priced shares, and in issues
usually dormant. were Offset by heaviness,
If not actual weakness. in other quarters.
and the whole movement OF the market
was Of zig-zag character which testified
to its uncertainty in the minds OF the
great majority Of speculative traders re-
garding the immediate future course of
values. This condition Of sentiment was
also shown in the falling of in the vol
ume of dealings. total transactions for the
day in fact footing up only SS4.so0 shares
as against !, ,4O5.9O0 yesterday.
Illinois Central Has Boom.
Illinois Central stock was the feature
of strength early because, presumably, of
the current rumors connecting the control
OF the property with the Union Pacific
management The Louisville and Nash
vile and Mexican Central shares rose
sharply in the one instance, as appeared
because Of speculative. buying based in
the one case, upon the supposed proba-
biIity Of increased dividends. and in the
other, by reason of the renewed circula-
Jion Of Old stories referring 10 the rumor-
ed taking over OF a large block of MeXi-
can Central securities by the Mexican
government.
The acutal authorization granted 10 the
directors OF the General Electric Com
pany by the COmpany's stockholders to
make the new stock issue proposed by
the directors some time ago. was as
cribed as a reason for the buying OF
General Electric stock, which at one time
advanced its price four points; and in
the train Of this movement a sympathetic
movement followed iu other shares. 4
little later +. the day St Paul common
stock again rose % points above its final
=
above its closing price on Monday of last
week. and rumors of new issue Of stock
with consequent Rights To sharehold-
ers by the Peoples Gas Company. of Chi
cago. produced a gain Of over two
points in this issue. While all this was
going on, however, the greater number
of stocks in the security list gave plain
evidence Of realizing sales.
The decisive impulse to a lower level
Of prices in the afternoon seemed 10 be
the recurrence Of perturbations regarding
the money situation. The optimistic
sentiment in the London market lately
prevailing was chilled to-day by the
news that s.. 600 in gold was about TO
be withdrawn from the Bank Of England
for shipment 10 South America. and that
demands Of this nature might be largely
increased before the week was over In
consequence discounts rose in London.
quotations for cOnsols fell and a reac-
tionary movement governed the London
market as whole. In Paris, prices were
also weaker
Call Money Goes Up.
Here the signs of renewed stringencv
in money. which put in an appearance
yesterday, became more emphasized. The
call money rate opened at 6 per cent and
rose steadily throughout the day until
= per cent was paid in the last few min
utes Of business.
Time money, TOO, was also higher. funds
Tor sixty DAYS again commanding : per |
cent and for ninety days and for feur /
months use 61z per cent. The local banks /
held without loss their gain in the week
Jhus Iar OF Sl,2SS,C00 from the sub-treas- /
ury.
Sterling exchange was weak. owing to /
the higher trend of money rates. and TO the
fact that remittances TO Europe to-morrow
must be made upon a slow-going, steam
snip An element in the money situation
appears 10 be the circumstances that /
bankers here have not completed the paw
ment TO foreign creditors for the stocks /
sold IN such volume by London houses /
at the time Of the elevation of the Ranl,
OF England's discount rate a few weeks /
ago.
There was a disposition to regard as /
OF some importance the reports of dam
age TO railway interests, and of inter
ference with railway traffic in the West /
and South by foods and weather incle-
mencies OF the kind usually experienced /
IN winter season.
These normal hindrances. II they may
be called such, to the profitable transac- /
ton OF railway business were only nota-
bic last year by their entire absence. and !
II Is. OF course hardly TO be expected that |
a similar extraordinary record will be /
made in the coming months OF routine /
news to-day the only matter of impor- /
tance, aside from the General Electric
Company's stock issues. was the an
nouncement Of the directors of the CIeve- /
land. Cincinnati. Chicago and St Louis
Railway Company of their intention TO
Issue soon to the stockholders Of the com
pany the Sl0.000000 of new stock author
lied some time ago.