Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-02-04

RECKLESS SPECULATION CEASES
Shaking Out Of Weak Speculative
acknowledgements Conditions
Failed to Hold Up Market.


weakness again today, and prices yielded
easily all through the list. Deep inroads
were made in the case of some Of the spec
ulative favorites The nominal motive of
the selling was the danger of a strike of
coal miners which is brought to attention
by the rupture OF negotiations for set
Element between the miners and operators
at Indianapolis. Apprehension over the out
come was fed by private advices from west
ern sources. accompanied by large selling
orders from the western speculative eie-
ment.
The taking OF steps toward strike in
the New York building trades increased the
Influence of the consideration given to the
labor outlook The sensitiveness of the
market to these Developments, in view or
the previous published reports of the prog
ress making toward them, was proof OF the
vulnerable position of the speculation due
10 the satisfaction of the demand for
stocks from the short interest following
the sharp reaction of the early part of the
week
The weak bank return also was foTeseen,
and was an element IN the weakness OF the
stock market although the bank return
was not just what was expected. The
Sl,GS.00 decrease in cash was much less
than expected, but the exhaustion OF the
loan item by s18aa1 500 in the face OF .he
very large LIQUIDATION Supposed TO have
taken place In the stock market dis
crease the surplus reserve item by a. 1u2-
DDS The yielding of foreign exchange rates
and rise IN sterling ~exchange at Tars
carried conditions away from the gold
port point.
The adoption OF a measure by the French
deputies authorizing an increase IN the
note circulation of the Bank of France has
a bearing OF the outlook for the move pent
of gold. The Bank OF France has refrain
from Offering Inducements for securing gold
In the recent past owing TO the fact that
the authorized limit Of its note Circulation
had been reached, leaving it no advantage
from an Increase OF gold holdings There
were some rallies from the lowest prices of
the day. but the closing tone was unsteady
end showed some important losses for the
day.
Total sales of bonds. par value, 81, sos. 600.
Shaking Up of Stocks.
The stock market THIS week has been sub
jscted to a shaking cut OF weakly held spec
ulative holdings. which broke prices to a
lower level with some violence A re5ound
followed and the upward movement was
aggresslvely renewed az some points The
recovery was partly due to feeling of re-
lief at the check to some speculative move
ments' which had become reckless and dan
gerous TO a degree that held a threat of
damage over the market. A prolonged and
notable advance In some important stocks
had been effected ON operations by organ
lied parties in the speculation possessed of
mate knowledge of the affairs OF the COM
panles IN whose securities they were oper-
atng.
These movements were taken w by new
forces in the speculation with resources
newly acquired out of speculative profits
whose lnfCrma ton on the affairs of the
companies whose stocks they were buying
was not trusted and whose plunging meth
DDS of market operations were REGARDED
with apprehension. Former holders Of the
stocks supplied this new demand so freely
as 20 embarraSs the attempts to advance
prices. When the market became unstable
calls FOR additional margins went out which
could not be met. The spasm o. forced
liquidation OF the early part of the week
was the consequence.
There was little news bearing upon values
TO account for tie rush to sell, and the
great strength OF the general situation
served TO attract renewed buying at the
lower level of prices The necessities of an
uncovered bear interest, which had sold
stocks short eagerly on the decline helped
the rallies, which were violent at some
points. The market went through process
OF readjuStmeut ia this way and showed the
usual wayeriug and uncertain tendency in
Tertectlng he process.
Country's Prosperous Condition.
The continued showing ~ prosperous con-
dItiOus On The country G.d not prevent the
downward course Of prices. the reports of
high earnings Of railroads in December
which came To hand and the extraordinary
financial showing 90 r." United States Steel
Corporation for the December quarter be-
ing regarded gs factors which had already
had their influence. "u tie past movement
OF prices More effect was produced by the
record figures of tie unified orders on hand
December ~ for the United States Steel
Corpora ton. An index was thus furnished
Of the coming activity in the trade az profit
able prices for period running months
ahead, with the promise IF stimulating
enect on all lines of industry which is
counted upon from prosperity In the iron
and steel trade.
The unusually mild winter has Injured 10 the
benefit or the railroads by saving the ex-
pense OF Snow removal and the high oper-
atlng cost caused by construction. Account
Is taken however, % the decreased demand
for some kinds OF winter merchandise
which Is caused by the unsea SOM bic
weather. Wall street is disposed also 10
keep an attentive eye on the winter wheat
crop Reports thus far received fail TO in-
dlcate any damage from the open winter.
But the precedent Of former years makes
the outcome subject of some anxiety. on
which the future course Of the stock mar
ket is believed 10 hinge 20 a yer, large ex-
tent.
The apparent sensitlveness OF the stock
market 10 the resolution of the House at
Washington calling for information bear
Ing on the legality of the 'Pennsylvania's
relations with subsidiary companies was
attributed mostly 60 the unstable and vuI-
nerable position In which the market had
been placed by excessive speculation But
the Incident served TO renew attention to
the possible effect on corporations OF Iegis-
lation now being pushed or which may be
brought forward
State Banking Inquiry.
The movement 10 Investigate the New
York state banking department aroused
some dread OF repetition Of the effect of
the life Insurance investigation by posi-
BILE extension OF an inquiry TO the relations
and affairs of New York financial institu-
lions. which might have a disturbing effect
on public sentiment Additional attention
was directed 10 this field by the public re-
marks OF President Fish of the Illinois Gen.
trail on the evils OF Too few men having
undertaken TO manage too many corpora
tons.
His illustration was the .439 directorships
held by nluety-two resident trustees OF the
three great life Insurance companies before
the recent reorganizations. The close inter-
relations or the great financial institutions
In New York comes in for much discussion
In It's relation to the great loans which
were extended In stock market operations
during the period OF stringency last fail
The requirement OF larger cash reserves by
a nj a ffrnr