Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-08-12
Upward Trend of Prices the
Past Week.
DISTURBED BY SELLING
Unsettled Sentiment and Irregular
Movement
AFTER SHIFT OF SPECULATION
Rise in Call Loan Rates an Obstacle
Prospects for Big Crops and
Profitable Foreign Market.

decidedly feverish during the short session
today, and the small net changes on the
day give no Idea of the activity in the
fluctuations the large volume of the
transactions. The opening tone was heavy
and the drive against Reading had some
depressing influence. There was a momen-
tary pause in the market also after the ap
pearance of the weak bank statement again
at the very last. After the most active buy
ing of the day there was some renewal of
realizing. which made the closing tone ir-
regular. The action of the Reading stock
Suggested a professional raid. and 1t was
suspected that this was for the purpose of
enabling large short interest to cover.
The record of the dealings in Reading on
the tape showed very large individual trans
actions both on the drop and on the recov-
cry. which was complete Atchison was the
only important stock to show aggressive
strength from the outset. g.
The record yield Of winter wheat prom
ised by the government crop report and the
heavy corn yield promised added plausible
fly to the rumors in circulation Of an in
tended increase in the dividend OF this
stock. There was a very heavy absorption
OF st. Paul and the Hartman facifics after
the appearance of the bank statement The
effect OF these large operations on the prices
OF the stocks concerned will be seen to be
moderate
serve of the banks was much larger than
anticipated or than can be accounted for
by the known movements of money this
week and the discrepancy in last weeks
statement which failed to reflect the loss
Indicated by the known movements of sew
eral million dollars.
The surplus reserve. which is reduced to
$3,2T1 .J25. compares with $12. SAG, 800 year
ago. and S57. 731. ATS two years ago. No
doubt is felt. In view of the banking situa-
ton. the rising rates for money and the
movement of cash toward the interior. that
gold will be withdrawn from London next
week for New York account. The conf
dence in this result helped to sustain. to-
days market
Selling to Realize Profits.
The upward course OF prices of stocks this
week has been interrupted by some heavy
selling to realize profits in the stocks which
have led the advance. Other stocks rose
strongly and served as a sustaining infiu-
ence in the market. but without entirely
neutralizng the effect of the prof1t-takins
In the transcontinental group
Some of the many rumors which served to
help on the advance in the western group
came to be doubted when their prices re-
acted and the shift in the speculation to
new quarters was not accompanied by SUI
fcent rumors of general application
to take the place as an incentive to specu-
Iation of the displaced influences The
consequence was an unsettled state OF SEN
timent and an irregular movement of
prices. with growing tendency toward re-
action. The stiffening of the rate for call
money and the evidence OF the setting In
Of the seasonable demand for currency
from the harvest regions helped In the re-
dictionary tone.
The rise In call loan rates and the sus-
tanned rates for the time loans proved
disappointment to the conductors OF the
operations for the advance, who had con-
WINGED themselves that conditions had
worked out to insure exemption from
stringency for a period that would give op-
portunity for a successful movement in the
market. The assurance obtained on this
point had removed the only effective OBJ
stacle to rise In prices by large accumu-
lation OF stocks in speculative hands. The
assurance was based the current ease of
call money under the influence of the redis-
tributon of the July dividend and interest
money and to the pause In the demand for
the circulation incident to the midsummer
period.
The Treasury Department Plans.
The measures adopted by the Treasury
Department for facilitating the fiotation or
the Panama canal bonds had added to the
resources of the money market. The large
resources at the command of the treasury
were also pointed to as affording security
for the money market of the fall. and re-
ports from Washington of the means avail
able for putting theseS resources at the
command OF the money market were ac-
cepted reflection Of official intentions
IN that regard. redemption OF part vi siie
- Pc w. a,,onn, q, sriT ono ONO
was suggested as a ready means to this
end. Large exports of domestic products
OF this years harvest are relied upon 70
aIiero ma 49, " ,,on.srn, ~ -f
al 1.a. ars,,aS thet tbs snstainea demand
was S a. 49, 20, rr,t ..'e 80 ~ 80 80 ths
lol inc ioa-S ~ ; ;e .,in - ~ 49,
Seas So tt.onna A. H. - go To- csrtaIniS
snaai raaSs and that thJS wonId resuit
t stain less than was feared in the
-. avant Or less Infinence was the cnn
$500 ,,,ttcb L. adyancsa eacb yaar nv
1890, snacu,ators thai the growth or
Itop T., ~ Ywsst Ia. alta ,ned nronor.,ons
s',ch 1ba, the harvest movement might be
saen.ad u,,hout the us,ai recourse 70 the
Mn,n ~ raservo,r of the countrv's money
r.ssrvss Onintons In This sense nv west.
ar,, Ia nL,ns au,borittes reportes from time
% ,tr,a a. wall street are unSerstood nv
' Ill Jn,orn.d 70 mean THAT wsstern
my -. = iasSanin1 nead fron va IN
Jam snIv 80 NJ yorL Tor ,nonavs 20
49,. - ~ a' movsmant 90 the cron pnt rhe
sssn st., ~ Lant &, Nsw yor[ Nv hanks
"a @ w -. - .o.,.,.s a. .