Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-02-18
Severe Declines Followed Act
i've Trading.
SUCCESSFUL BEAR ATTACK
Movement Credited to a Veteran
Operator.
BANK STATEMENT A SURPRISE
More Favorable Than Had Been Ex-
pected-Belief That There Has
Been over-speculation.
SUCCESSFUL BEAR ATTACK

NEW YORK, FEBRUARY it--otNtfe ut-
clines resulted from the active trading OF
the two-hour session today. The selling
was made up of heavy speculative liquida-
ton combined with a weil-centered bear at
tack on the market, which was credited to
the generalship Of a veteran professional
operator with the prestige of many sac
Cessful bear campaigns in the past. The
moment evidently was proptious for the
suacrss of the attack, The renewed de-
cline Of this week had brought prices back
TO the ueighborhood reached in the decline
in January. fall below this level was
bound to have the effect Of dislodging spec
uiatiye holdings which were retained
through that decline. Add to this feature
OF the weakness of the technical position Of
the market the feeling of encouragement
over the speculative outlook which has
been gaining force steadily with the per
Cepti1u of the persistent droop IN prices
and the action OF the market finds sui
teieut explanation without reference to the
news events having amy more substantial
bearing ON values.
The Bank Statement.
Tho bank statement proved more favor
able than had been expected. Only nomi-
nal iuroad was made upon the surplus
which it was feared. might be wiped out
The loss i'm cash was only about half OF
what was indicated by the known move
Irents Of money for the week. The prin-
Cipal interest attached to the loan Item
and the contraction reported OF S"'nlp'UV
was i'm contrast with the fears that the
heavy bond fOtatiOns of the week must
have caused q large expansion OF banking
credits That there has been, in fact, such
AN expansion is not open to doubt, but by
resort To foreign lenders through the me
dium of the exchange market the local
BANKS seem have been relieved for the
present from these requirements.
The statement of the couutrSs foreign
trade for January published today, shows
the large resources at command In the Tor
eigu exchange market In The excess values
for exports over imports OF @1,UtNvop. com
parpd with only about $2I,UOO,oUp for the
preceding January. The severest pressure
today Ceutered naturally upon the recent
speculative faVOTtps, so that the widest
declines are found IN Reading, jm"h "a
Cifc. Smelling. Colorado Fuel, Amalga-
mated Copper the Hill railroad group.
brooklyn Transit and others which
have been most prominent in the excessive
speculation Of late. The decline in prices,
however was general throughout the list
to the extent of between l and points
The feyerish rallies at the last evidently
were due 60 hasty profit taking by the
successful bears. and the closing tone was
unsettled and weak.
Total sales OF bonds, par value, $l.39jVOo.
Effect of over Speculation.
Confidence i'm the existing level of prices
Of securities has suffered impairment this
week. and a growing disposition toward
the retirement of speculative commitments
for "a further advance has been the result
The movement has been Irregular at times.
Int demand proved l1nguid and the selling
required forcing the average price lever
lower with some increase In the volume OF
trading. The causes of the reaction are not
obscure but the growing Clearness OF the
perception of them has given them added
influence. Stated broadly and in general
terms the effects OF over-speculatton IN
many widely divergent fields are observa-
bic Thus 1t happens that with reports and
statistics coming to hand lustitying the
most sauguiue expectations INDUCED during
the speculative activity, II Is found that the
buying Of securities based on these conul-
lions has been mostly accomplished hoL
those who bought with the intention OF
selling and VINO relied upon the demand to
be excited bv the fuInment Of the expected
prosperity. the market has lacked abSoFptlye
power TO take the offerings coming upon H.
In the money market also. the available
resources have been SO far taken up 10y an
tIciuaiiou that the seasonable re1ux OF
funds into banking reserves is proving IN
sufficient To supply the cOnverglng demand
without forcing up interest rates 4" an eN-
fa.t that has proved AN additional discour-
agam,ut To the speculative holding Of sesu-
Tl-ies.