Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-03-11
Week Closed With Uncertainty
and Hesitation.
UNSETTLING INFLUENCES
Heavy Liquidation of the First Few
Days.
ATTRACTIVE FOR THE BUYERS
Many Things Contributed to Pessi
mistic Views-Recuperated Money
Market Restored Some Firmness.

lost ground today, although thefe was d
disposition to contest the reaction in the
early part of the session. The prevailing
tone OF the market was one rather of I'M
certainty and hesitation than of any de-
rided tendency The opening strength was
fairly general. but there was no conspicu-
Gus feature In the market Some special
strength In Norfolk and Western was at
tributed to the advantage of position said
20 be enjoyed by the coal mining interest
along Its line In the event of the threatened
strike OF bituminous miners.
The renewed weakness in Consolidated
Gas was the first unsettlng influence on the
market. 1t was after the appearance of
the bank statement that the general DOWN
ward tendency developed. The recupcraton
OF the surplus was not as large as had
been hoped. This was due TO the heavy
decrease in cash reserves, which reached
nearly s5,500.O0o, against preliminary esti-
mates of only about a million. This may
be due partly 20 the fact that the 50, 100000
of government deposits w1,h the banks
which were made late in the week, would
anect the daily averages for only part or
the week.
But there were also discrepancies to be
made UP from previous bank statements
which had reflected only part of the cash
losses indicated by the known movements
of money. The 81 $50 100 loan contraction
was In accordance with expectations IN
view of the stock market liquidation and
the transfer of credits to foreign lenders.
But the heavy loss in cash affected the
showing of the surplus. Expectation that
the coal mining dispute will come to head
next week had some influence on sentl-
ment The tone of foreign exchange was
steady, although the Saturday market Is
nominal Reports of negotiations ior
large Russian loan indicated a forthcom-
ing demand upon the relaxing foreign
ised settlement of the Moroccan contro-
versy. The market closed unsettled ana
du.-. oo- o.,o
Total sales of bonds par value, s1,23 600
The Weeks Dealings.
The week opened with a spasm of liquf-
dation in stocks, which was elimination
OF the persistent decline of last week. the
urgent liquidation of Monday seemed 10
complete the necessitous selling for the
time and the following days showed rehet
from pressure, but very dull and sluggish
trading, with manifest disincination on
the part of operators to turn Immediately
to the long side of the market. with the
relaxation In the money market ana ING
sharp drop in foreign exchange, Wnich
seemed to offer prospect or posslpie
import movement of gold, the market
threw off it's lethargy and moved smartiy
upward. recovering practically all OF the
weeks declines
week was the natural consequence OF the
downward drift of the previous markets
which had wiped out numerous margins on
speculative holdings, caused shrlnkage
in collateral which made lenders on STOCK
collateral dissatisfied and SCourageu
speculative holders, who threw over hold
ings in despair of an early turn in the
course of prices The paying off of loans
which ACCOMPANIED the liquidation relieved
the position of the banks, which were
striving to keep within the legal reserve
limit against the inroads upon their cash
holdings
The money market also showed the eff
feet of the government funds deposited
with the banks. the S,UOVo allotted TO
New York having reached the banks ne,
fore the end of the week. The downward
movement of foreign exchange, which tend
ed TO open foreign money markets to New
York improvements, was due IN part 10 the
improved political conditions abroad, grow
ing out of the Frightening prospects Tor
settlement of the Moroccan question with
assurance of peace. 1t was believed that
large supply of exchange came from the
placing with force subscribers of blocks
of the new bond Issues, which have been
coming I'm such large volume from rail-
roads and industrial corporations. This de-
Velopment was regarded with satisfaction
as affording double relief from threatened
requirements upon domestic capital which
might dsplaCe older investments and throw
them upon the market.
The heavy tone of the bond market and
was an evidence of this state of the Sc
curities market. The shipment of gold to
Japan from San Francisco against deposits
here in the subtreasury was a cross cur
rent in the currency movement which was
regarded with interest owing to the proba-
b.lity that the movement would attain con-
siderable proportions in the process of re-
mittance of japanese funds on deposit In
New York to the home market. There
were sales of exchange against these re-
mittances Of gold, which helped to weaken
the foreign exchange market here.
Prices Attractive for Buying.
The extent Of the decline in stocks in it
self made the current level OF prices at
tractive for resumption of buying, and pro-
fessionsl operations were renewed with
vigor when the cessation of the liquidations
was demonstrated. a revival OF many
rumors of intended projects and important
developments which have served as ammU-
milton for tie bulls in the past was fea-
ture of the new buying. which became
large and aggressive after the middle OF
the week. Considerations of less favorable
import which were given attention on the
decline fell out OF sight again.
Early IN the week Wall street was In
clined to take a very pessimistic view OF
the chances for averting strike of an
thracite miners. The message of the Presi-
dent, with the resolution for investigation
OF charges of a coal and Oil monopoly, in
tensihed the apprehension Of harm to Sc
curities from the prevailing legislative &C
tlvlty toward affairs OF corporations. The
halt IN the iron market. pending the de-
termination of future requirements. was
made the text for discussion on probable
coming reaction In business. and the de-
cline IN securities was feared as a possible
herald OF the necessity for letting out in
flation IN other quarters.
The dispute over passenger rates between
the Chicago and New York lines was or
bad effect on sentiment. The continuing
output OF great bond issues caused anxiety
OF a possible glut in the securities markets,
and the interior demands for currency 10
be met at this season coming upon the
unusually low state of reserves of New
York banks pointed TO the possibility of an
active money market which might initiate
against speculative activity In the stock
market.
The oversold condition OF the market, the
attractive level 10 which prices had been
lowered and the actual recuperation OF the
money market served to sweep away mis-
givings and induce the upward turn. in the
market The heavy decline In wheat was
an influence in inspiring confidence in the
progress OF the winter crop with all that 1t
implies in the promise for future pros
perity. Railroad earnings show enormous
Increases over those for the corresponding
period OF last year. and reports from diff
ferent lines of trade and industry show