The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1906-12-31


marked by a. continuation of that liqui-
dating movement that had been running
with greater OF less violence. practically
ever since the beginning Of the month.
and at one time on Wednesday prices of
stocks on the average were lower than
they had been ut any time hitherto dur
ing the entire year
Beginning. however. on this same day
and lasting during the remainder of the
week, there was 6 recovery in values.
based partially upon a clearly oversold
condition Of the market and partially
upon an improvement in prevailing con-
ditioas. There we're indications that the
forced selling of the Northern Pacific AMI
Great Northern preferred shares, which
has been the dominant feature of the
market lately. was completed, and il was
commonly understood that two or three
weak places in the speculative situation
had been strengthened. The decline in
these stocks, and indeed in the market
as a whole, had certainly gone far enough
TO warrant al upward reaction, at least,
in prices of something more than mere
momentary importance
Hope for Monetary Situation.
Call money held during the week at
relatively low level, and all the probabili-
ties were that whatever furry in money
rates there was around January 1 would
be very short lived The stringency in
time money was not abated. and this led
naturally 10 varying views as to the
character of tie monetary situation for
long future period as distinguished from
that in the days or weeks Immediately at
hand. There began 10 be noticeable 4
slight. even II a very slight. return Of
money from the interior of the country,
and the hope quickened that this sending
back of funds SO long delayed, would
surely gather force as a stock market
factor early in January. Sterling ex-
change. too, was persisteatly weak, fall
ing TO a point that would have made
gold imports under ordinary circum-
stances almost inevitable
Yet our bankers persistently refused 10
take gold from EurOpe-that is To say, Of
course. from mountaineering or beliey-
ing that this action would result in a dis
turbance in the London market and would
cause greater harm than good here This
IS "a phase OF the situation that is the
subject OF rather deep study just now il
high financial quarters. Coupled with the
known volume of our exports and with
the meageT balance of actual money in
bank reserves in England against bank
deposits. it suggests queries that cannot
be readily or carelessly answered.
Traders Lose Money During Year.
During the year that to-day reaches its
close the stock market has been on the
whole a feverish and uncertain affair, and
while its results have not been displeasing
10 investors, they have been such as TO
make the profits Of professional specula-
tors small. Indeed, there is little doubt
that the great majority Of habitual
traders in the stock market have, taking
the year as an entirety, lost money. All
these operators" say that the market
has been one that has been very hard
for them to read. It has been neither
continuously weak nor strong for any
long period, fluctuations in it have been
violent and Spasm0dic. oftentmes without
any apparent reason, and The course of
the entire market has been so htful,
irregular, and variable that those who
have attempted to follow its movements
in a speculative way have found the task
one that severely taxed their powers OF
judgment
Features of Previous Year.
The Characteristic Of the market at the
end Of the year preceding was. as ali viii
remember, enthusiastic advances made in
it. although as high rates for the use of
call money were paid for the purpose
of carrying on this speculation as had
been seen at any time in the present
generation. This strength in the market
had been continued for several months
previously, despite a stringent money
situation, such stringency, Of course,
being by no means as great as that which
has been prevailing in the last half OF
the present year, owing to the fact that
in 1893. as compared with 1906 time money
could be had on fairly easy terms. From
August TO December, 1895, however, the
market was buoyed up with the hope that
whatever money difficulties there We're.
were of Geeting character, and that early
IN January there would be such an I'M
loosening of the pocSetbooks, both ,of
bankers and Of the people, as would make
money very easy in Wall street.
In the first week of January, 1905 how
ever. the market broke violently upon the
failure of this ease in money to put in
an appearance as early as had been an
ticipated, and although ease in money,
or what was relatively such, did follow
later in the month, the market did not
resume its advance; and, indeed, although
during the month Of February and the
early part Of March the ease in money
became pronounced, the course of values
during this period bore evidence to an
unceasing, if carefully conducted. liquida-
ton by those who had bought stocks I'm
the excited speculative movement during
the latter part OF 1905.
Conditions Last Spring.
After this. dullness and fdIeness was as
much a feature of the market as any
thing else. The call-money rate took a
squirt at the time of the April dIsburse-
ments TO the highest quotations seen on
the stock exchange at that time of the
year Tor twenty-five years, and although
sterling became very weak and gold i'm
ports were made in quantity under Sec
rotary Shaw's grant Of facilities to the
banks for undertaking such operations
the stock market turned weak and re-
NAMED so during the rest Of the month
the decline being accentuated by the ter
rible catastrophe in San Francisco.
Through the month Of May and up to
the beginning OF June the market was
dull and variable, becoming almost SEN
sationally weak at the end of June under
selling OF stocks attributed to the disgust
of the larger financial interests over thz
governments policy in regard to cor
poration matters. There was again a re-
eovery, followed by a break In July. the
last movement being caused cstensibly by
the weakness in the foreign markets
owing to the drop in Russian bonds and
general fear Of financial troubles in Rus
sia-