The Washington herald., 1906-10-27
STOCKS AT LOW EBB
Reach the Lowest Average
Touched i'll Two Months.
FOLLOWED BY SLIGHT RALLY
No Good Reason Assigned for the
Decline in Great Northern and
Northern Pacifc-New York Cen
trail still standardization Circles
Report "a Distinct Improvement.


New York. Oct. 26-In the dealings in /
stocks during the fore part OF to-day /
the market was again moderately de- (
pressed and prices fell to the lowest 1
average yet touched by them in the last
two months After midday the char /
acter of the market changed. and a /
l7,lving movement set in which left net
advances and declines rather irregularly I
scattered through the security list, but
with advances pTedOminating-
The particular feature of the market
in the early part of the session was
heavy selling of Reading. Northern Pa I
ciffc. and Great Northern preferred /
shares. coupled with relatively stub /
born resistance presented to the decline /
bv the Union Pacific. Southern Pacific, /
and United States Steel common stocks.
Union Pacific common stock, taken /
in all, is the leader of the present mar
ket and it has hitherto reflected as
quickly and as accurately as any other
security the shifting changes of senti- |
ment on the part of the professional
spectators. whose purchases and sales /
now constitute the major portion OF stock
exchange transactions. But to-day, while
the general market was weak. buying
orders were placed in bulk in Union Pa
cific so that the stock fell only very
slightly lower than the final quotation
il made yesterday afternoon. j closed
at a considerable net gain.
Spectators Are Disappointed.
No reason was given for the decline in
Great Northern ,and Northern Pacific eX-
cept alleged disappointment on the part
of the spectators over the slowness with
which results in the shape of stock
dividend. and so forth, maturing after
the execution by these companies of a
lease of their ore lands 60 the United
States Steel Corporation
The fall in Reading was commonly eX-
planned as due to liquidation for the ac-
count of one of more of the large pools re-
Gently at work in the stock There was
also a continuation of the sagging move
ment in the New York Central shares,
which has been going on for some time.
and which IS said TO be caused by sales
of the stock made in "arbitrage' trans
actions involving also the purchases on
the curb market Of rights 10 subscribe 10
the new issue of New York Central stoCN.
Those engaged in this operation are en-
deavoring. In other words, 10 coin into
money the small difference in parity eX-
isting between the price of the subscrip-
lion report and that of the actual stock
now traded in on the floor OF the stoCh
exchange.
RumOrS Are HI-fOunded,
Otherwise than as described, the mar
ket to-day presented no noteworthy char
acterlstic. It was rumored in the morning
hours that there had been some calling Of
loans by prominent banking institutions
and that 1t also had been found difficult
10 renew certain large maturing time
loans. where security OF an Indifferent sort
had been placed. The money market
however. to-day reflected none of these
supposed disturbance
A distinct Improvement in sentiment
was experienced in financial circles in
London to-day upon the successful concIu-
sion Of the weekly fOrtnighuy settlement.
Discounts'in the open market in London
were less than the minimum rate of the
Bank of England. and prices were firmer
upon all the European bourses. LONDON,
here, too. was a buyer, as was estimated,
of about $500 shares of stock
Views of a more optimistic character
than those expressed yesterday seemed 10
obtain regarding the local political sitUa-
zion. but on the other hand, fears We're
general that tomorrow bank statement
might make a rather unfavorable show
ing According TO the usual estimates the
banks have lost during the week on all ac-
counts between 100000 and $S.00l0O0, and
as the loss IN cash shown in the last
weeks bank return was less than, as was
believed, actually occurred, the inference
was that a pretty heavy drain of funds
from the banks would be exhibited in to-
morTOws official report,
Bank Reserve Falling on.
II is assumed. too. that bank loans have
been enlarged since last Saturday owing
10 the shifting of credits to this city from
London, although the distention of the
bank loan account from this cause has
undoubtedly been to some extent reduced
by the speculative liquidation i'm stocks.
Theoretically. it could easily be figured
out to-day that the surplus reserve of the
hanks OF 100000 held by them 4 week
ago has since then fallen TO the vanishing
pOint.
The course Of money rates to-day. how
ever. certainly did not suggest very bad
bank showing tomorrow. and this indica-
ton has in the past proved one OF the
SuTest regarding the character Of the
bank return. In banking quarters more
thought appeared to be taken to-day of
the character of next weeks bank state
ment than that of tomorrow. Before
next weeks report of condition is pub
lshed the large volume OF stocks sold by
London houses in the course OF the recent
week viii arrive at this center and viii
have to be cared for by their posSessors
here.
The cotton exchange was again the cen
ter Of interest to-day among the com
modify markets. The price of cotton again
declined sharply. this time under a crop
estimate made by an English expert. The
best local authorities. however are still
very firm i'm their belief that the damage
undergone by the cotton crop since the
first of September has been sufficient to
reduce the years total output of the sta