The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1906-12-21
Expected Rally in Prices of
Stocks Not Apparent.
CALL MONEY RATES LOWER
transactions in Securities show
Falling OR-DuIlness Most Pro-
Use Much Cash-Harriman Believed
Be Behind c., NJ. & st. p. New Issue.

the average price OF Stocks taxing as q
basis of computation the leading and
standard shares. had fallen within u very
small fraction Of points in the three
days of the week thus far After such
break some recovery In values would, un-
der ordinary circumstances, be considered
almost inevitable and natural impulses
toward such a movement were certainly
heightened by the development of rumors
over night that the Secretary Of the
Treasury was once more about 10 do
something" for the relief OF the money
situation.
These rumors did not materlalize TO-
day. and, indeed, in their place We're sub
stituted other rumors that the Secretary
OF the Treasury had stated that he would
not place any more money in the banks,
and that the only thing that he could
further do was 10 accord tacit permits
sion to the banks to dip into their reserve
for funds for current use.
suggestion such as this would, of
course hardly be made in an official
manner One thing that has very clearly
da,e!oped is. as pointed out in this col
lmn yesterday. that the Secretary Of the
culation by Offering to buy the govern
ment per cent bonds of 1907 is failure
The sentiment in the banking commu-
nifty is almost universal moreover, that
such vas justly failure. since il in
volved the withdrawal Of the bonds thus
purchased from their present use as
basis for circulation, and would undOubt
cdly, if it had been carried out have
disturbed current business rather than
extended any help TO it,
Call Money Rates Lower.
However brought about, the fact was
to-day that call money rates were de-
cidedly lower than they have been for
several days past The opening rates for
the use OF call funds were . and Is per
cent. and bank renewals We're commonly
made at = and 13 per cent At these
rates the great bulk of borrowing during
the day was done. and when these re-
quirements were filed the price Of money
sank TO merely nominal figures.
Curiously enough, the low rate made
for money to-day as compared with that
ruling yesterday seemed to be interpreted
by the speculative element as an Unfavor-
able symptom. The impression appeared
to prevail among those usually trading in
the market IN an active way that if to-
days relatively low rates Tor funds were
justified. there was no, occasion for the
high rates OF yesterday, since i was well
established that the banks had IN the
meantime received no money TO speak OF
from outside sources The feeling was,
therefore. that the money market was IN
so difficult as to make speculative buying
or selling of stocks largely matter Of
guess work; and it was manifest that the
market did not display to-day the same
degree Of rallying power following a de-
cline that it has many times since the
first of September.
transactions Are Fewer.
Transactions in stocks were only 16S,000
shares. of 1Olo,G90 less than they were
yesterday. and although the principal
stock closed mainly at advances. the
gains in only j few instances were as
great as a fun point On relatively lin
tied dealings, Great Northern preferred
stock advanced % points. Peoples Gas
stock. upon which an increase in divi
deud is speculatively talked OF, rose .
points. and the St Paul common shares
closed Il. points higher than the previous
day
Louisville and Nashville stock was al
one time the subject of a sharp rise, Ow-
ing 70 the circulation Of stories that the
directors Of the company, at their meet
ing to-day might advance The semi-an-
nual dividend rate upon tie stock Such
tales found no credence, except in ultra
speculative interiors, and the stock re-
coded 90 its opening price upon the an
nou1cemcut that the directors had left
the dividend rate unchanged.
The dullnoss Of the market to-day was
really lis most pronounced feature. Hope
was generally expressed and with good
reason, that Saturdays bank statement
would make a much more pleasing show
inS than il mas Tor several weeks past
inasnuch as the banks have gained from
the SUbtrCasury thus far S461.001, and
bank leans have presumably been re-
duced by the liquiGating movement in
securities. The London market was not
perturbed to-day by what was superb
cialy a poor weekly exhibit Of the Bank
Of England the banks reserve falling
20 3S.5f per cent. rs against 47.02 per cent
last week. because OF loss Of G.. SOC. 600
ia gold holdings. aud an increase CT So
SpgJ in loans.
Money Used for Christmas Deals.
The character of the return was. how
ever, well understood as merely rejecting
the temporary withdrawal Of money from
the banks for Christmas purposes. and
there is no doubt that the money
suingency here too. within the last few
days, is attributable to the sam. general
cause. The further demands Of railway
employees in various sections of the coun-
try for additional pay. with threats of
trouble if these demands are not granted.
were not in anyway to-day a stock
market factor, as the experience of re-
cent months has shown that the tendency
of all difficulties OF this kind is u be
compromised; neither did the suit brought
by the attorney general of the State to
dissolve the American Ice Securities Com
pauy under the antitrust law excite any
talk nor exert any adverse influence upon
the price OF the company's stock
Liquidation Encourages Situation.
a matter that encouraged more hopeful
views regarding the money situation was,
OF course. the determination of the Chi
cago. Milwaukee and St. Paul and the
Chicago and Northwestern Railway COM
panies to forestall the payment Of interest
and dividends falling due regularly on
January !; and this action. following
that of a similar sort taken by the New
York Central and Hudson River Railroad
Company, which viii TO doubt be
followed by these Of other leading cor
porauons, viii presumably help much to
alleviate the expected increase In the
money stringency around the end of the