The Washington herald., 1906-10-29
Stocks Are Disappointing by
Failure TO Maintain Gains.
EARLY RALLIES SOON OVER
Large VoIuuse OF Advance Orders Re-
ecEvcd Last Monday the hONI En-
CouraEing Sign OF the Week-CaII
Money Rates Are Much Weaker.
shows Action Meets with Approval.

. utCdIlDiiillnss AZ dttt rae - NAioSI ~ t4o
rcgud fluctuations In values from an
entirely speculative point OF view. Prices
rlillcd very sharply on Monday from
their violent break in the last two days
vc the preceding week. aeh moved up
ward Il little further on Tuesday, But
thIs seemed 10 exhaust the buying power
of the market so TAR as a desire TO pur-
chase stocks on q rising scale was con-
( cerned. and when the market closed on
Thursday afternoon quotations were back
again nearly 10 the point at which they
left of ri the end Of the previous week.
On Friday prices were lower still. rally
ing however. later I'm the day on what
seemed 10 be n retirement Of speculative
contracts for the fall: ana on Saturday
( the advance was continued in moder-
lite way. stimulated. as It seemed, By "a
bank statement which was decidedly OF
1 The class known as more favorable than
expected.
The loans Of the Clearing House in
stituuons decreased over S29.0OoO00.
whereas q considerable enlargement of
these obligations had been looked for
owing to the known fact that there had
been during the week Il heavy shifting
of speculative accounts from London to
this side.
There is no doubt that there has been
TN the last six days an expansion rather
than contraction Of lnans here, and
that the reason why this Is not shown
is that the new loans have been taken
over by the trust companies. At the
same time the inference necessarily fol-
lows that this taking over of loans by
the trust company organizations attcsts
the presence OF distinct avenues OF re-
lief in the local financial situation that
may indeed. be opened wider as The year
/ progresses.
Advance Orders Heavy.
The most encouraging development OF
the week. according TO technical standards,
was the fact that before the market
opened on Monday orders we're received by l
stock exchange houses In larger volume
than has been witnessed in Wall street for
a long time to buy stocks at or a little
below the average range Of prices quoted
on tho Saturday before. The fall in the
market. instead OF inducing further lIqu-
dation seemed 10 provoke buying on the
part Of the public. On the other hand
II appeared clear that the public for the
time being was not willing to follow the
advance" in the market when prices
rallied vigorously and that as soon as the
short interest had been eliminated prices
were inclined 20 recede.
There was rothinE Of a particularly ad-
verse nature during the week in the IN
folding Of the money situation. Six per
cent has been bid Tor all grades OF time
money since the advance in the Bank Of
Euglauds discount rate, and for time
money for ninety DAYS that is 10 say, for
.'over the end of the year" s per cent (
ard a commission amounting 20 about
Z per cent extra are generally paid.
Call money rates were distinctly weaker I
from one end Of the week to the other /
bank renewals being made on stock ex-
change loans each day usually d Iittle
lower than on the day preceding. Secre- /
tavy Shaw's action IN allowing the na-
tional hanks 10 substitute other security /
than chat Of government bonds for SIS
000.00) OF public money now held BY them. /
upon the condition that they viii increase /
their note circulation in like amount by
means OF the government bonds thus re- /
leased, viii no doubt be helpful 10 the 1
money market
ShaW's Plan Praised.
It was the consensus among bankers
here that Secretary Shaw acted wisely in
not putting money in the banks directly /
and in keeping the Treasury hoard intac= |
for use in a possible later emergency. BY
means of this action s1S.09000o viii be add /
ed 10 the amount OF money available for
the country's Use; and the step taken is a !
very creditabic one on the part Of Secre- !
tary Shaw.
There is no denying that the sagging /
tendency which IN the main governed the /
IL l..
extent to real liquidation, although in !
general it was TO be accounted for in the /
conviction that spread among the trading |
element that financial interests Of the first /
rank were willing 20 encourage any
movement for the rise in values until cur !
rent monetary and political uncertainties |
had been cleared away. There was, there /
fore. good deal Of hammering of the /
market with the view of catching stop I
loss orders and TO stimulate selling by IN /
easy boldeTs of stocks Of small financial 1
resources. on one OF two days during 4
the week there seemed TO be a definite /
effort to create an election scare that !
was not. however. highly successful.
As has been stated. the money situation 1
during the week suffered no appreCiable /
change. Financial affairs. not only in I
our country. but throughout the world. 1
are passing through that period Of strain /
which is almost invariably felt in the fall /
OF each year. and goes in England. France, I
and Germany, rs well as in our own land. /
as tha result Of necessities incident 10 the /
gathering OF the haTvCsts and the seasons !
trade.
Underestimate the Demand.
Il is perhaps conceded that financial in |
terests. both here and abroad. undeTesti- !
mated this year the amount Of money |
that would have TO be Withdrawn from |
the leading financial centers fer the pur- |
pose described. This IS the time Of the |
year when. more than any other actual |
money is needed IN circulation. and busi- |
ness throughout the world is now more
active than ever before known. il is |
clear that the last straw on the cameTs |
back. SO far as The directors OF the Bank !
Of England were concerned, was not only |
oveTlending 10 this country. but with /
drawals of gold from the bank for ship !
mcnt to Egypt that were very much larger |
than any enc had anticipated.
lhe movement OF money from our East |
ern cities to the West and South for the |
crop moving exceeds all previous records, !
despite the fact that the bank Golfers in !
the agricultural districts. or al least in /
the West. are more abundanty filed than |
they ever were; and The idea seems to OBJ
tain that this movement Of money west- |
ward and southwark viii go on through /
out the greater portion Of the remainder /
Of the year. After that time OF course /
domestic exchanges viii once more turn
heavily in favor Of the Eastern cities. and
there viii be a plethora Of money here
during the winter and early spring; and |