The Washington herald., 1906-11-23
Stocks Yield to Liquidation
After Strong Beginning.
INACTIVE SHARES DO WELL
Foreign Bank Shoviags satisfac-
tory, hut Selling for London Ac-
Great Northern Method of Ore Lease
Distribution Affects the Market.

again to-day the prevailing feature Of
stock market transactions. A generally
better tone ruled in the foreign markets,
owing to the easier monetary conditions
which there, as well as here, have come
TO pass within the last ten days.
The Bank of England's weekly return.
made public this morning, was not. per
haps, as extremely favorable as was an
ticipated yesterday. but still made a
strong showing. The bank increased its
gold holdings nearly S7.Oo0,OO0. or an even
greater enlargement than had been looked
for But as the loan account of the bank
was also swollen in proportionate degree.
the banks proportion of reserve to LA
bflities was raised to only 1922 per cent.
as against last weeks percentage Of 4026
per cent
Foreign Sales Large.
The weekly exhibit of the Bank Of
France was not quite as gratifying as the
foregoing, for. although the loans Of the
French institution were reduced S7.SS7, 900,
the banks cash fell on S4.7O000O.
But, no matter how produced. cheerful
ness was plainly evident in all important
foreign financial centers, and it brought
about higher prices there for American
stocks before the opening of business here.
On the other hand. London houses, al
though at first buyers of stocks here. were
afterward sellers, and it was estimated
that the total net sales here for foreign
account exceeded purchases by 5000
shares.
In the fore part Of the day. strength in
the local security market was pronounced.
Union Pacific stock was the leader, and
remained so during the entire day, deal
ings in that stock forming more than one
fifth Of the total volume of transactions
in the market as a whole; and. even
though the stock afterWard lost the great
er part Of its advance, il still closed at a
gain of almost a fun point
Speculation in LOvv-priced shares.
The tendency Of current speculation to
engage itself with Iow-priced and usually
inactive shares was once more evident by
the Missouri, Kansas and Texas common
and preferred. National Railroad Of Mex
ice, first and second preferred; Virginia
Iron, Coal and Coke, Pittsburg Coal, Col
orado Fuel. Pacific Mail. Republic Iron
and Steel. Texas Land Tract Brooklyn
Rapid Transit, and Delaware and Hudson
stocks.
In nearly all Of these cases special rea-
sons were osJensibiy at work. The ex-
treme advance OF 10ss points in Virginia
Iron, Coal and Coke stock was accom-
plished on q relatively small volume of
trading, as ,he stock is supposed to be
controlled almost entirely by large Wall
street commission house. There were also
rumors circulated that the company was
TO be taken into meditated merger OF
various Southern coal and iron properties.
Improved prospects. as was thought. Cor
the passage Of Z subsidy bin by Congress
in the coming winter accounted for the
rise = Pacific Mail
Confidence that the highest court Of the
State would uphold the right asserted by
tEe Brooklyn Rapid Transit Company, in
the litigation now pending to cherge an
extra fare or its Ccney Island lines was
the basis Of the advance in the company's
shares.
An impression IN the financial district
that now that a Hartman control over
the Illinois Central Railroad Company
has been attained. the James J. Hin rail
way interests would eadeayor to lay hold
of the lines of competing property, was
commonIy offered as the reason tor the
buying of the Missouri. Kansas and Tex
as shares.
Liquidation Has Eject.
Dealings much larger than ordinarily
witnessed in Delaware and Hudson stock
caused n one time an advance of 5ls
points in the price of the security. half Of
which was retained as a fnaI net gain.
and the idea gained currency that not
only was an annual dividend rate Of -
per cent likely 10 be established for the
stock next monIh. but that the entrance
of new stockholding interests into 10
property was going on.
Nevertheless, while strength was no.
ticeable in these quarters, il was Equida-
ton. apparently. that was In the ascend
ant. and in the afternoon the general mar
ket turned weak. There was adverse de
velopment in the money situation TO cause
selling of stocks, as call money rates were
even easier to-day than they We're yester-
day, and the price of funds for use for
longer periods remained unchanged.
The local banks reported gain for
the week of nearly 100000 in their
transactions with the subtreasury. al
though this viii be offset to some de-
gree in the bank statement at the end of
The week by the shipment yesterday and
To-Day OF Slt-.utVlU 10 san Z IdAflSco-
The premium. too, on New York Ex-
change in Chicago disappeared. and a dis
count was substituted in its stead the
meaning of this occurrence being, as it
seemed. that interior financial institutions
at the low level of call money rates
touched to-day were not free lenders Of
funds
Great Northern DisappOints.
L2,,f rv,. -.o+o,7+ ,--r,ro
ness in the market in the afternoon was
undoubtedly the more or less disappoint-
ing reception. from a speculative point
OF view, given by Wall street in the an
nouncement this morning of the Great
Northern Railway Company's issue Of
stock 10 its stockholders representing their
participation in the company's lsase Of
ore lands to the United States Steel Cor
poratlon
These stock certificates are not really
such. but are certificates representing 4
beneficiary interest in q deed of trust
executed by the Great Northern Com
pany covering the profits OF the ore-Iand
lease, and il appears that for the time
being, st least, the interest return on
these certificates viii not be large At
any rate, the announcement as made to-
day disclosed nothing that had not long
been a matter of common knowledge in
connection with the ore-Iand transaction:
and whether or not by reason o. profit
taking after Wall streets usual fashion.
following the PRONUNCIATION of expected
good news" the Great Northern Rail
way and Northern Pacific stocks and the
price Of the new certificates on the curb
market all declined sharply
The st. Paul common shares were also
heaEE- falling naarlr a.-a MINI. hal,..