Los Angeles herald., 1906-05-26
BY Associated Press.


NEW YORK, May 25.--Stocks under
went comprehensive recovery in prices
today on dealings which at times showed
great animation. There were one or two
conspicuous exceptions to the sweep of
the upward movement. The undoubted
strength of the market was nevertheless
fairly general. There was notable unan-
unity of opinion that the strength of the
advance was largely due to the necessi-
ties Of an uncovered bear account. At
the same time reports were current Of
an absorption of some Of the day favor
ite stocks on account of banking inter-
ests closely affiliated with the COM
panies and entrusted with their financial
operations or representing the actual con-
troll of the properties. The belief in buy
ing of this kind was particularly effec-
tive in intimidating the bears and in driv-
ing them ito shorts.
Reading was still the conspicuous leader
of the advance, and the upward rush In
the price carried the price higher than
that ruling when the news of the San
Francisco earthquake was first received
in New York. Erie shared pretty fully
in the strength of Reading, but outside
OF these the coalers did not fully keep
pace with the movement.
The supposition that the anthracite car
riers We're considering a project to d1vest
themselves Of ownership of the coal COM
panles by a division of these assets among
stockholders, was the main influence in
The Hill stocks made a chara cteristic
upward flight without any news to ex-
plain the movement. The movement in
general was not based on any known de-
velopment in the situation to Justify the
radical change in the speculative temper
since the early part of the week.
The speculative element is fostring a
supposition that banking negotiations with
foreign money centers have been going
on which promise supply of money re-
sources for the use Of the New York
strlngency during the coming season The
Pennsylvania bond sale in Paris is the
concrete fact on which this supposition
is based But no authoritative informa-
tion on the subject Is to be had in bank
ing quarters.
The money market is firm today both
for call and time loans, the latter partly
in sympathy with the former. Syndicate
requirements account for the rise in call
loan rates. 20 per cent installment on
called for S., 800, 900 today and a so per
cent installment on Delaware & Hudson
convertible bonds subscription called for
s9OOoO0O. Next oId Tuesday eaS the subscrip-
issue are payable and later in the week
comes the payment on Chicago & North
western stock subscriptions.
promise of replenshment of the money
market under these conditions and with
large new capital issues in prospect is
understandable.
London discounts were harder today
but the impression prevailed in Wall
street that there might be some early
renewal of the gold import movement
The currency movement of the week in
dicated slight change in the cash item,
but syndicate operations may have an
influence on the loan item of the banks
The stock market showed some signs
of weariness during the day and prices
receded considerably, with the closing
tone easy.
Bonds convertible into stocks were
strong and rose in sympathy. Total sales,
par value. $3,720,000.
United States bonds were all unchanged
on call.