Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-11-25
Liquidating Carried Prices
Down in Short Session.
SPECULATIVE SENTIMENT
Some Apprehension That 1t Has Been
0verdone.
DECLINE OF THE STANDARD OIL
Bank Statement Yesterday Was Bet
ter Than Had Been Expected in
the Gain of Cash.

NEW YORK, November pa lquldat-
ing movement in speculative accounts de-
welcomed in the stock market today, which
attained considerable proportions during
the course of the two hours session. Par
ticular damage was done to prices or the
transcontinental railroad stocks. owing 10
the extensive advances which had occurred
previously in their prices. The action OF
Great Northern preferred since the an
nouncement of the plan of participation IN
the ore contract rights and the course of the
quotation for the rights when issued In the
curb market have had a bad effect on spec
ulative sentiment. The evidence that spec
ulation had been overdone in that case
arouses uneasiness over the outcome OF
other speculative factors which have been
followed with confidence on very vague in
formation Some apprehension finds express
sion over the adjustment of loans in which
Great Northern preferred figures as colat-
eral when the ore rights come off the stock,
the suggestion having found circulation
that banks will require additional col
lateral and will be unwilling to accept the
beneficiary certificates to make up the gap.
owing to the inactive market which may
exist for them when separated from the
stock itself. The consideration of the re-
cent wide decline in Standard Oil in the
outside market had an important effect on
speculative sentiment, although that stock
was supported today The bank statement
was stronger than was expected in the
matter of cash gain, the addition to reserve
reaching nearly 100000, against esti-
mates which did not exceed million for
the maximum. The 100000 loan expan-
tI,a NAcIti hat int
banks were lending freely here during the
week was not so well liked. The market
rallied on the appearance of the statement,
but the higher prices induced resumption
Of the liquidation and caused the severe
break in prices from which there was only
slight recovery. The closing was weak
Total sales of bonds, par value, SSI6,Ooo
Review of the Week.
The week in the stock market started out
confidently under the influence of the good
bank statement of last Saturday and the
evidence of forces at work for the further
amelioration of money conditions. The
course of the money market subsequently
unsettled this confidence to some extent
and led to an irregular and spotty stock
market. number of comparatively OBJ
scure stocks We're brought into prominence
and pushed upward in sensational man.
ner without any Ineligible explanation,
and this had the inevitable effect of arous-
ing suspicion of manipulation and the pur-
pose to conceal operations at other points
IN the market. Distribution OF speculative
holdings was clearly distinguished in some
OF the recent speculative fayorites al
though there We're vigorous advances in
others. The attraction of the profits result
ing from the rise in prices Of the previous
week induced the realizing and bore heavily
upon the market at times. The varying
fluctuations were closely in accord with the
course of the money market, and conditions
there evidently had an important bearing
speculative sentiment.
Foreign Situation.
On the side of the foreign money mar
kets the course OF events was favorable.
Almost equal Importance is attached to
foreign and domestic money conditions in
this market, owing TO the large indebted
ness of New York abroad movement
of gold from Paris to London therefore was
regarded with satisfaction here owing to
the promise of assistance thus indicated
to the efforts of the Bank of England au-
thorities to replenish its reserve and pre-
pare for the year-end demand upon it's re-
sources without advancing its discount rate
TO per cent. II that action should be
found necessary il is feared that New York
credits would be dislodged in London and
our own year-end money markets en-
barrassed. The policy of the Bank of
France in relinquishing gold to the London
market therefore has an important bearing
on the outlook in New York.
This policy gains additional Importance
from the new demand upon London gold
supplies for Brazil account which develop
ed this week. This demand not en-
trely unexpected owing to BraZls pro-
posed legislation for fixing an exchange
valuation for its currency, but the hope in
London that it could be avoided is evidently
disappointed. Nevertheless the Bank of
Englan DIS weekly statement disclosed a
satisfactory growth of strength and the
open market discount rate has receded in
London.
In New York the easing tendency of
money which developed last week has
been reversed and rates have hardened
especially those for time loans, which
premiums have been re-established after
having been practically wiped out with
the opening OF the week. The high call
money rate of the first of the week at
tracted some large offerings from out of
town lenders and readjustment of loans
of large estate reported to have
brought new funds into the market. But
The demands of the revived speculation
seemed sufficient TO absorb these supplies
This action of the money market aroused
fears that available funds would not be
sufficient TO carry successfully any active
speculative movement.
Internal Money Needs.
The question of the satisfaction of the in
terror demand for currency also was
brought into doubt by the movement of the
interior exchanges. New York exchange at
Chicago, after rising to 90 cents premium
per $1,000 early in the week. fell back SUBJ
siderable sums TO San Francisco showed the
usual seasonable demand in force from that
point for moving the fruit crop. Some
further movement to the south to complete
the moving of the cotton crop also is a
usual contingency about this time of year
II is believed that some American securi-
ties closed out in the last London stock
market settlement have been arriving in
New York this week and have involved re-
auirements for new borrowings to carry
them.
Industries Still Active
No small Importance from the standpoint
of sentimental conditions in the stock mar
bet is attached to the announcement of the
plan for distribution to Great Northern
stockholders of the benefits of the iron ore
contract with the L. S. Steel CORPORATE ton
Active operators in stocks feel some misgiv-
fngs over finding any instrument that will
prove potent this project has been to
whip UP speculative activity in an indef-
mite series. There has been the usual sell
ing to realize on the good news In the stocks
Immediately affected and the influence has
been depressing TO the general market The