The Washington herald., 1906-11-26

ward movement in security prices was
not so pronounced last week as 1t was
the week before, and toward the end Of
the week the market declined rather
sharply on profit taking. there was still
no doubts as TO the generally strong
tendency Of values. \ large proportion
Of the professional trading element did
not, OF course like to buy stocks after
such violent advance in the market
without any reaction. Nevertheless, 81
was clear. taking the week as a whole,
that the buying power behind the market
was superior to that furnished by any
effort toward liquidation, and that opu-
mism rather than pessimism was the
rule among spectators.
First and foremost among developments
having an immediate bearing upon prices
was that relative to the ease in the money
situation Call money rates We're a little
higher at the beginning of the week than
they were at the close of the preceding
period, but they soon fell again and
reached the lowest level that they have
touched at any time since the . per cent
rate of a fortnight ago, time money
rates. however, remaining substantially
appeared to be something like a general
clearing away of doubt as TO the course
Of rates during the rest Of the year.
Bank of England to Rescue.
The Bank OF England's weekly report
showed that the bank Just as last week,
was rapidly charging It's proportion
Of cash reserves against liabilities TO a
figure normal for the time of the year.
The bank. it is true. was called upon last
week 10 ship q considerable sum of money
to Brazil for the purpose Of moving the
coffee crop there, and as demands from
this source were a little larger than had
been looked for. and threatened to keep
up for some time, they caused mo-
mentary chill in English financial circles.
It soon become evident, however, that
the Bank OF France, or at least French
bankers, were willing to help out IN the
matter far more readily and in a larger
degree than on any other similar Occa-
sion recently, so that the Bank of Eng
land quickly gained in money sent from
France what il lost 10 South America
The most striking feature of the Bank
of England's power of recuperation seems
TO lie. however, in the fact, To which
attention has often been directed in this
column, that an amount OF new gold
varying usually between S5,50o,0Oo and
S35O0O00 is laid down each week in the
open London market from the South
African mines. Practically all of this is
gathered into the Bank of England 5
treasury; and so gradually but surely the
banks reserve once more accumulates-
Rates VIII Go No Higher.
The case as it stands seems to be that
g per cent discount rate on the part OF
the Bank Of England may be expected
to continue until pretty nearly January
!, but that there is no ground for fears
that higher rate may be necessary
Locally. the most important occurrence
of a financial character was the increase
in the premium on New York exchange
in the interior cities. attesting the truth
Of the statements made privately by our
leading bankers that money was beginning
70 return here from the interior Of the
country. Another evidence of this move
ment was. Of course. the substitution of
small gains fOr. losses made by the banks
each day in their transactions with the
gUbTeasuTy-
As everybody is now aware, losses by
the local banks to the subtreasury
usually mean in the latter part of the
year that our city institutions are making
payments Of customs dues for the account
OF interior cities. the interior banks
drawing on their balances here for the
sums required. The transaction, thus. is
only a method of shipping money to the
interior Of the country, 50 that when the
local banks begin to gain from the sub
treasury proof is afforded that the West
ern pressure for funds is abating.
Speculation Picks Up.
From a purely speculative point of view
great weight also attached TO the move
ments Of particular stocks in the market
and the vigorous renewal Of stories OF
IDEALS" and other operations whose
effect it was supposed would be peculiarly
favorable to prices In individual instances
Heavy buying OF the Missouri, Kansas
and Texas common and preferred shares
was accompanied with a story that James
J. Hill. or the Great Northern Railway
interest, was acquiring either an actua
or practical control OF the Missouri
Kansas and Texas property. the purpose
being suggested by the fact, as seemed
that the Hartman. or rival railway, in
teregt had managed 10 lay its hands on TIT
Illinois Central Railway Company, thereby
obtaining an actual outlet to the Soutl
and the Gulf of Mexico that the Gred
Northern does not at present have.
Strength of the Mexican National anC
Mexican Central Railway issues was as
sociated with a belief that the Mexican
government was endeavoring TO gain
complete ownership of both companies
having in mind a plan Of consolidating
under government sway all the imp0rtan
tablishment Of a 10 per cent dividend
rate on Delaware and Hudson stock an,
of an effort on the part of large stool
holding interests in the company Z
change potential assets of the COMPANY
into u cash form. as well as revive,
stories Of a separation OF the railwa.
and investment holding of many of tn
anthracite railroad companies, were re
sponsIbIe for more or less of a boom il
many of the hard coal stocks.
Rock Island Is Strong.
Speculation busted itself, too. with loy
priced and usually inactive shares, q buy
ing movement of no small force seem
iag to occupy itself with Rock Islam,
common The market, however, though
strong. was regular Realizing sales ap
peared to be plentiful in St Paul com
mon stock after its tventy-point rise +
price. and there was considerable seIIn.
Of the Great Northern and Northern PA
cific preferred shares following the on
ciai announcement on Thursday that earl
in the coming month there would be is
sued TO each holder of Great Northern
Railway preferred shares q certificate o
the basis OF dollar for dollar represent
ing a beneficial interest Of the Grea
Northern stockholders in q deed Of trus
executed by the company covering III