Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-05-27
Weeks Dealings Have Been
Mainly Professional.
PRICES FADED AT CLOSE
Bank Returns Showed a Weakened
Position.
COALERS SCARED THE MARKET
Conposure of Bank Resumption at
San Francisco Proved Reassur-
ing Factor.


bought stocks on the rise yesterday sold to-
day tn even up their contracts over Sunday.
That was about all there was to the mar
ket, which was narrow and professional to
the last degrae. The pressure on prices re-
Taxed to some extent after the first hour.
Under the influence of the firm tone in
Pennsylvania, which did not share in the
weakness of the general market. Prices
faded away again in the closing dealings.
and In some instances ended at the lowest,
with the tone easy
The bank returns showed a weakened Do-
sition and had an unfavorable effect on
speculative sentiment. The surplus over
the legal requirement was shown to be
S6,694,l50 This compares with a surplus of
S11. sta5. 500 at this time last year and of So
t92.325 two years ago Subscriptions fall
due next Tuesday to the S50Gp, 900 of Penn
sylvania notes, and there are other syndi-
cate requirements to be met later in the
week
The usual month-end necessities are also
10 be met. The possibility of q furry In
call money next week was therefore kept
IN view. There were quite emphatic dis
Chalmers of some of the rumors yesterday of
e. great corporation in prospect for taking
over the coal compa MES from the railroads
in order to comply with the law. These
rumors caused buying of stocks yesterday.
The money and exchange markets Were
nominal. as usual on Saturday. The imperial
bank OF Germany made a strong return and
the Berlin discount rate was easier Total
sales of bonds. 81 $4,000.
Languid Speculative Interest.
The stock market of the week has been
highly professional and showed the effect
OF the languid speculative interest on the
part of any large part of the general world
of capital The volume of dealings fell to
q 10
week and fluctuations had become narrow
and sluggish, the current Of prices shifting
constantly under the almost exclusive oper-
ations Of professional room traders who
did not venture to carry prices in one direc-
ton. lacking the advantage of any wide
market as medium to carry their specua-
ton The result of this state OF things was
discouraging to the holders OF stocks ow-
ing TO the tendency of prices in very dull
market TO gravitate to a lower level under
the marketing of small supplies OF stocks.
Some selling by tired holders and a fall in
prices was the natural result.
Later there was good recovery and evil
dence was apparent of a resumption of
benevolent control of the market by pro-
tective measures on the part of bankers
and speculative organizations with large
resources The group of coalers was the
lever employed to check the decline and to
lead the recovery. dealings in Reading es-
pecially being on an enormous scale and
sensational advaices being made in the
high-priced volatile members of this favor
tie speculative group. The movement was
accompanied by confident predictions from
manag gers OF the speculative campaign or
ultimate prices which they believed would
be touched by stocks in this group. in a
manner made familiar by past campaigns
in Reading.
The success of these past campaigns and
the prestige thus gained by their leaders
induced considerable speculative following
for the movement on the recovery. The
favorable position of the coalers. by reason
of the three-year labor settlement, was
cited as ground for the advance. There
was discussion also OF the possibility with
railroad companies would be led to divest
themselves of their ownership of coal min
fng companies on account of the tendency
OF recent judicial decisions and of intended
legislation as we'll as by the disclosures in
connection with the coal roads inquiry.
The "Pennsy'' Inquiry.
The exposures of grating practices
among Pennsylvania officials brought out
by this inquiry were of notable influence in
the depression and paralysis of speculative
interest in stocks early in the week. The
effect on public confidence in the securities
of the railroads was feared, and also the
likelihood that agitation against corpora
lions would be stimulated and cause dam
age 10 values Of their securities. When
prices turned upwards professional sent-
ment adopted the view that exposure would
work the cure OF harmful practices and
dement, the earning power OF the Coihpaiic'
Sentiment over the money outlook was in
similar state of fiux and came TO conclu-
sion Of a hopeful view.
The first incident to induce this conclu-
sion was the news that the Pennsylvania
had placed a large bond issue in the Paris
money market. Pennsylvania stock has
been under pressure for some time past on
account of its huge borrowing operations.
But the fact that French capital resources
were opened to II was accepted hopeful
;lugury of the chances of resort to this
great reserve of capital for the enormous
projects of expansion ana extension of en-
terprise in contemplation IL all lines OF
American industry.
The effect was heightened by later reports
that fire insurance companies had pros
meet Of securing a SD 900 600 loan in France
TO cover their San Francisco losses Such
an arrangement would serve to keep off the
market securities In the reserves OF these
companies. which otherwise might have to
be sold to pay losses. The obtaining or
credits abroad also IL was hoped. would
lead TO a renewal OF gold imports to New
York and TO the further replenishment of
bank reserves for the strain of the fall re-
quirements upon money markets
A Reassuring Factor.
The entire composurc with which banking
operations were resumed in San Francisco
was another reassuring factor of emphatic
influence Not only were the deposit and
discount banks free from any semblance of
a run. but the withdrawals from savings
banks proved moderate and resources on
hand superintendent to meet requirements.
Under these conditions there can scarcely
fail TO be large and early return to east
ern bank reserves of the large sums piled
up in San Francisco as a precaution against
emergencies.
The Importance OF these additional re-
sources for the local money market Is kept
prominent by the maturity of subscriptions
for securities issued from time TO time md
by the further issues still in prospect.
Even the great Pennsylvania borrowings.
although evidently supplying the immediate
needs for carrying on the great improve
ments under way by that company are be-
lieyed not to exhaust the requirements for
completing the work.
Circumstantial reports OF an intended
$50, coo, 600 bond issue by the United States
Steel Corporation, for completing the great
Indiana plant, met with the official ex-
PLANTATION that such an issue, II II Is made,
will be some time In the future. Reports
of a $50. 100000 note issue by the st. Paul
met with a less qualified denial. although
early additions to capital resources are be-
lieved to be needed for the pushing OF this
companys Pacific coast extension. New
York CentraRs improvements also admit
teddy require large new capital resources.
Payments this week and next OF stock and