The sun., 1906-01-12
FINANCIAL AND COMMERCIAL.


THURSDAY, Jan. II.
There was no trace to-day in the security
market OF the indetermination that had
In general prevailed since the beginning
Of the year. In the fret few minutes Of
trading almost all the losses In prices made
in the last few days were recovered and
the market thereafter was aggressively
strong to the close Of the day. decided
influence in bringing about the more op-
timistio feeling was unquestionably the
failure Of the directors OF the Bank OF Eng
land to change the Banks discount rate
this morning, Curiously enough appre-
hension concerning an unfavorable action
in this regard was greater here than in
London, although not the slightest grounds
for an advance in the Bank rate could be
predicated save a possible desire on the
part of the Banks directors to fortify their
position for purely general reasons. News
was received in the British capital to-day
that 5000 900 pounds sterling was on the
way from India, while an encouraging de-
velopment abroad was Of course, the
completion of negotiations in Paris for
Russian loan to be carried through entirely
by French bankers Both the Bank OF
England and the Bank of France made
strong weekly reports of condition to-day.
exhibiting an enlargement of cash sup
plies and reduction in loans There
was also less uneaslness everywhere in
Europe over the Moroccan diplomatic
situation. Prices, therefore, showed an
advancing tendency in the London stock
market, and the improvement extended
to American securities. While there was
an absence Of important news happenings
locally to-day, manifest flip was given
to speculation for the rise not only by the
more cheerful note sounded in the London
market but by a renewal shortly after the
opening of the market Of notable strength
and activity in Great Northern preferred
and Northern Pacific stocks. This : nat
urally to recrculaton of all the multi
tudnous rumors of deals extra distribu
tons of profits and similar favorable de-
velopments affecting the James J. Hill group
of railway stocks and caused renewal
of the upward movement in Union Pacific
stock. Dealings in the Union Pacific COM
mon shares formed, indeed, oneffth of the
days total transactions. The buying power
thus excited did not. however, converge
upon one stock or particular class Of securi-
ties. The Amalgamated Copper, Ameri-
can Smelling and Refining, Anaconda.
st. Paul, New York Central.
Southern Pacific. Tennessee Coal and Iron
and all the active and prominent shares
rose vigorously. A particular feature of
the market was the advance in the price
Of various railway and industrial stocks
that have long been relatively dormant,
tk, I'eI
and Southern, Denver and Rio Grandc, Lake
Erie and Western, Ontario and Western,
Pacific Coast, st. Joseph and Grand Island
and Texas Land Trust issues. There
was too, buying of very substantial ma
ture in the American Car and Foundry
shares. All the companies now engaged
in the manufacture of railway car supplies
have orders on their books covering prac-
.ically full years, and in some instances
nearly two years, business ahead, With
he facts thus constituted a resumption Of
dividends upon American Car and Foundry
common stock in the near future seems more
.han probable.
A matter to-day that also definitely con-
ributed to the buoyancy of the market
vas a further lowering of time and call
tendency in foreign exchange and a rise
n sterling in Paris This made 1t evident
hat there was no prospect of gold exports
n the present week, and the opinion be-
ame general in the foreign exchange mar
set that the time of gold exports from this
de was likely to be indefinitely postponed.
rhe normal January period of ease in money
eems, in other words, to be gradually as
erting its beneficial presence in every
me of the worlds great fnancia markets.
Despite slight reduction recently in the
premiums on New York exchange in some
# the interior cities, there is no doubt tina,
he usual inflow Of money to the financial
entres from the agricultural sect ions has
begun. In their transactions with the Sub
rreasury thus far in the week the loca
,anks have gained s3,ol3.0OO, and this gain
viii be increased in tomorrow showing
W Sub-Treasury debit balance at the
Hearing House to-day of nearly 81 500, 600.
The Sub-Treasury also paid out $500, 600
Turing the day on telegraphic order for
he transfer of money from San Francisco.
)f routine announcements during business
lours the one that attracted most attention
vas the II. b. Claflin Company's report
# net earnings in the la st half of 1905 of
500, ,4e4, against $500. 937 in the correspond
ng period in the preceding year. On
ccount Of the prominent position occupied
" this company in the mercantile world
Is semi-annual reports are properly re-
,arded as affording a valuable criterion
# the general health and prosperity of
mercantile business.