The Washington herald., 1906-12-09
MARKET IN A RALLY
Poor Bank Statement Has
Directly Opposite Effect.
U. P. SHOWS LITTLE CHANGE
Indictment Does Not Weaken the
Stock as Much as Expected-Gen-
eraI Business Conditions Continue
Excellent - Complain that Con-
sfEnees Do Not Unload Cars.

New York, Dec. S.-The course Of prices
in the stock market during the week
made the action of the market to-day, In
view Of developments regarding the finan
cial situation, not at all surprising. The
publication Of weekly bank statement
that was the poorest since the panic of
1892, showing that, although bank loans
had been reduced during the week nearly
$4,O00O0 the banks had been drained of
over S12,O0OO00 cash, and their surplus re-
serve stood at a deficit Of S6,oO0o00, in
stead of producing a break, resulted in
rally in market valuations.
Before the bank statement appeared to-
day the market had been heavy, although
dullness, rather than weakness. was its
dominant feature; and the advance in
prices that occurred was still such as to
leave quotations for the principal stocks
slightly lower than they closed on the day
preceding.
The acting Of the market, however,
was such as to leave its extraordinary
strength, under the circumstances, the
one matter Of note. For this, perhaps, a
variety Of reasons occurred The fact
that no liquidation followed the publica-
ton Of the bank statement induced the
retirement OF speculative commitments
for the decline.
Sterling exchange has fallen to level
that points to a renewal Of gold imports
If high financial interests here think ii is
desirable that these shall take place; and
beyond all this the impression was strong
in the financial district 10 the degree Of
positive and general belief that within a
very short time the Secretary of the
Treasury will take action 10 relieve the
money situation in an effective way.
Manipulation Is shown.
A fun review Of the theories Of the
stock market under such conditions as
were disclosed must also, regrettably, in
clude this-that the condition Of the
banks was not as it appeared to-day on
its face, and that the low figures Of the
bank surplus as quoted represented man
ipulation for an Interior purpose.
Movements of individual stocks were
especially noteworthy. sharp advance
occurred in the Republic Iron and Steel
common and preferred stocks, based upon
runors of an impending closer affilia-
ton of the company with the Tennessee
Coal and Iron Company. Union Pacific
common stock was unfavorably affected.
although to a comparatively small extent,
by the indictments found against the
company in the Federal courts in Utah,
in connection with the cOmpany's owner
ship of coal properties; but the stock,
nevertheless, displayed as great residence
as any other when the market recovered
in the latter part of the day.
n. NJ NfUf=Gfnu mines
stock broke to a new low record on its
present declining movement.
The inactivity Of the stock market, in
view of many conflicting influences, has
been its chief feature during the week
General business conditions, Of course
continue very prosperous. Railway earn
ings are perhaps making a little less IA
vorable showing than recently, partly be
cause they are comparing with huge earn
ings last year and partly because the
increased wages OF railway employees
the higher cost of railway supplies, and
so forth. are making railway operating
expenses larger than they have ever beer
before.
It is also true that our railway com
panies on account of the stringenCy OF
the money market are devOting a large
portion Of their earnings outright to i'm
provements upon their properties, anc
charging the same to operating expenses
instead of raising money therefor by
bond and stock issue, as they ordinarily
would
Accused of ImprOvidence.
Another matter too, of which mucf
has been heard of late has been the i'm
pairment TO business caused by the short
age Of freight cars the country over
The railway companies have been charged
with impTOvidence in not ordering in dul
seasons cars for their needs when bust
ness once became active, but they re
tort that they did, in fact, make this
provision, and that the real reason Oi
the scarcity of cars is that cOnsignees
in all parts of the land have not pro
vided themselves with proper facilities
for the storage Of merchandise which
the railroads delivered TO them, so tha
the railroad companies are compelled t
practically turn their terminals and theil
cars into warehouse plants.
The demurrage charged for cars KEEP
in this manner has long been only nOmi
nal, and although lately increased, seem!
very low TO ordinary observers. consider
ing the present exigencies; and just VIII!
the railway managers Of the country dC
not rOundly increase these demurrag'
charges and force the people TO whom
goods are sent to take them out of TIT
cars with reasonable rapidity does no