The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1906-12-18
TRADING IS LISTLESS
Buying in an Unsettled Mar
ket Is Professional.
RISE IN ST. PAUL COMMON
Cali Money Rate Advances Until II
Reaches 10, Forcing Down Stocks
Paul Directors order Issue of $780,
600, 900 in Common and Preferred.

New York, Dec. 17.-Diverse and
irregular tendencies prevailed in the
trading in stocks to-day and produced
a heavy and unsettled If not exactly a
weak security market.
The buying and selling that went on
was Of an even more professional sort
than 1t has been recently. and the
diminished public in the market was
further shown in a considerable falling
OF in the volume Of transactions.
Some selling of stocks appeared to
be occasioned in the early part Of the
stock exchange session by a further
violent rise In the price of St Paul
common shares. which led to rumOrs of
q corner" or OF competitive buying
in the stock. The only approximate
evidence that could be discovered Of
operations of this character was a with
drawal of St Paul stock from loans by
one or two prominent stock commits
sion houses. this having the effect of
depressing the sO-called Tending
rates" on the stock 20 figures far
below the ruling rate for money bOr-
rowed on call.
At one time St Paul stock lent
FIAT" that is to say, interest was paid
upon the money deposited by borrow
ers OF the stock to secure the return
Of the borrowed shares
Cali Money Rate Is Up.
At the same time, too, the call money
rate. which opened at per cent, rose
to Is per cent, so that the rigors Of the
existing money publication was only
once more forced upon general notice
Under these influences declines run
ming above point as a rule occurred
in the principal stocks. After this
carly furry was over the market grew
torpid and remained so until the clos
ing hour of the day, although during
this period prices slowly hardened so
that considerable portion Of the prev
lous loss was recovered.
The recovery seemed to be brought
about by a slight easing of in money
rates. but IN the last hour money rates
again rose TO the highest figures Of the
day, touching 20 per cent, and the
market declined TO a level nearly as
low as that touched in the morning
This later decline included the St. Paul
common shares, although they closed,
nevertheless, at a slight net advance
for the day.
1t may be doubted II there was any
serious belief to-day in the financial
district that corner or similar con-
tingency affecting St. Paul common
stock or any other active security was
impending It has long been known
that the floating St. Paul stock in the
market was exceedingly small and the
control of the stock is fairly lodged in
a small number Of very strong hands.
and sufficient reason from a specula
tive point Of view for the recent adj
vance I'm the St Paul common shares
was afforded in the announcement
made after the close of business hours
that the St. Paul directors had ordered
an issue Of $66, $4,000 preferred and
S33.1S3,740 common shares Of the com
pauy ~ par to the existing stock
holders at once.
Rights to Subscribe Valuable.
Rights 70 subscribe to this large issue
of stock on these terms will, of course
be very valuable.
Neither is II probable that the con-
ti7ued stiffness Of money rates was
vital and powerful adverse factor in the
market, since ii is realized that the
local bank surplus stiTl stands at a
deficit and that some time must elapse
before the full effect of Secretary
Shaw's recent relief measures is expe-
rienced.
The banks have gained thus far dur
ing the week s2,2S7,O0O from the sub
treasury. as against loss of the same
amount at this time a week ago, and
although our bankers were not Compel
itors with the Bank Of England to-day
for the 100000 in gold that was
offered for sale in London from the
South African mines, they could un-
doubted1y have secured this money or
the greater portion Of it for their use
If they had assumed to do so.
There were rumors that could not be
verified that a small amount Of gold
was. in fact, taken for American &C
count; but so far as offlcill announce
ment went. ii was stated that the Bank
Of England had secured the greater
portion Of the money, the rest being
taken by the Indian government
There was perhaps to-day a little
less cheerfulness noticed in foreign
financial sentiment, partially owing to
an increase of home borrowing. incl
dent TO the nearness of the end Of the
year, partially to the political troubles
in France, and partially to the ex-
peCtancy OF an advance this week IN
the money discount rate OF the Imperial
Bank of Germany. Business is very
brisk in Germany, and money, il
seems. IS commanding the high rates
for use at the coming annual financial
settlements.
Neither was there anything to-day Of
great Importance in the routine news:
railroad earnings as reported still
showing the same slight tendencies
noted Of late toward a decrease in
gross as well as in net revenues. It
IS all together probable that a matter
having as much TO do as anything with
the days decline in prices was the IN
favorable impression made upon specu-
lative sentiment by the peculiar heavi-
ness, noticeable from the very outset OF
trading. in certain Of the very high
priced stocks
Pressure was once more very gppar-
ent 10 sell the Great Northern pre-
ferred and Northern Pacific stocks, and
this extended to stocks like Chicago
and Northwestern common and Della
ware and Hudson. A sharp break in
the price of Reading common was the
feature of the final dealings