The Washington herald., 1906-12-13
STOCKS IN A DECLINE.
Gains Made on Tuesday Are
Practically All Lost.
CALL MONEY RATE ADVANCES
Poor Reception Given Great North
ern's stock Issue-Dividends by
Explain Rise in Money Rates-NO
Gold Expected from London.

New York, Dec. I2.-Prices Of stocks to-
day lost. as a rule. the gains made by
them yesterday, the cause of the reaction
being generally ascribed to increasing
evidences that whatever aid to the money
situation might result later from the
relief measures recently inaugurated by
the Secretary Of the Treasury. conditions !
in this regard are for the time being still
stringent.
Quotations for American stocks in the
London market were as usual, or, as they
have been for many days recently, higher
this morning before the opening of busi-
ness here than they closed on this mar
ket yesterday afternoon, and. as usual,
they opened here before the London
parity.
The first call-money rate recorded here
to-day was per cent, and bank renewals /
were commonly made at 81 per cent
Then the rate advanced slowly, but IN
unyielding fashion, until it stood at l5
per cent at the close. Time-money rates |
were unchanged
The effect of this was at the outset to
produce inertia rather than weakness in /
the security market and the total volume /
Of purchases and sales during the day /
was barely two-thirds of that of yester- /
day. 1t was only after midday that the |
pressure of the money stringency began !
10 make itself felt and even then it re-
suited in no great liquidation, but merely /
stood to bring about a species of dis |
cOuraged feeling among spectators, for |
the rise resulted in a moderate selling of
stocks
Issue Poorly Received.
one matter that clearly Influenced spec
ulative sentiment adversely was the |
rather poor reception given by the stock |
market TO the news announced before |
the opening Of business of the Great
Northern Railway Company further is /
sue of $50, 600 stock at par to Its
shareholders. The plan of the issue had
several novel features, these comprising /
a spreading out of the payments for the
new stock over a period running until
April, 1908. and an allowance of interest
at the rate of per cent on the payments /
made.
The rights on the stock, taking yesteT-
days closing quotation of the Great
Northern shares as a basis, already calcu- /
lated as being worth something less than
so a share, but sales of these certificates, !
when issued. in the outside market to
day were made considerably below this |
figure The trreat Northern preferred
shares regularly listed also developed
weakness. selling at one time ~ points
below their yesterdays final quotation;
and more or less pressure to sell Northern
Pacific stock also appeared. No doubt the
decline in these two stocks, quite as much /
as any stiffening in the call money mar
ket, played a full part in the days fall in
prices.
Few stocks show Strength.
Certain stocks to-day, however, were
strong, notably the Louisville and Nash
vile shares. presumably by reason of the
current indications for a large cotton crop,
and the Mexican Central and Mexican Ma
tionaI issues, because of rumOrs of plans
the Mexican government was entertaining
for the purchase OF a controlling interest
IN the Mexican Central Railroad. Decided
drmness of St. Paul stock was also a fea-
ture Of the days market.
1t was said this afternoon that the di-
rect cause for the rise in the call rates
was the unexpected calling in Of demand
loans, involving large amount Of money
by a very prominent private banking
house, and il was supposed, moreover,
that preparations for the disbursement at
or before the end of the week OF dividends
by several large industrial companies, in
cluding the Standard Oil Company, and
arrangements for a further payment upon
the recent new issue Of New York Cen
tral stock We're also responsible for the
rise in money to-day.
However this might have been, further
reason for the rise in rates was certainly
10 be found in the figures Of the tTansac-
tiOns of the banks with the subtreasury
during the week. thus far showing that
the banks had sustained a loss of nearly
$4.5oO0O 900.
Up to the present time very little if any
of the government money recently released
or offered to be released by the Treasury
has found its way into local channels. /
and it does not seem probable that any
tangible relief from this source will be
experienced before the beginning of next
week.
Money for South America.
Yesterdays decline in money rates, in
view OF these circumstances. was much
more mysterious than tO-days advance. /
There were no developments of impor-
tance in foreign financial circles to-day
Monetary conditions in London seem to
hold their recent improvement. Although
It is said that S5000,O00 will be shipped
from England within the next few days
for Brazil and the Argentine Republic It
is supposed that the Bank Of England
will be in receipt, before next Monday,
Of over 100000 in South African gold
This balanced intake and outgo of funds
on the other side, however. does not
promise the release of any large guam
1ity Of money in that quarter for the use
OF the American market. Foreign ex-
change to-day was weak, following the
advance in money rates, and the routine
news Of the day comprised the announce
ment of an advance in the annual divi-
dend rate of several of the railway or
ganiZatiOns occupying a subordinate place
IN some OF the larger systems.
An incident OF the day worthy OF no.
tice as bearing upon the general invest
ment situation, was the utter failure of
the State Of New YOrks Sl,000,OO0 3 per
cent gold bond offer, made under the
good roads act, and passed at the last
session OF the legislature. All the bids
for the issue opened at Albany to-day
amounted only to the meager sum OF
S60eC. A contrary result, of course. il is
said could hardly have been expected by
the state of the money market.
NEW YORK MONEY.