Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-12-29

Early Gains More Than Wiped
Out in Final Selling.
SHORT INTEREST REDUCED
a Cheerful Outlook in the Money
Situation.
THE CURRENCY PREMIUM
Bank Statement Proved More Fa-
vorable Than the Most Sanguine
Expectations.
SHORT INTEREST REDUCED
THE CURRENCY
PREMIUM
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK. December 2s.-The stock
market was under some constraint today.
and the brisk advance which was inau-
gurated yesterday was not pursued with
confidence. Gains were more than wiped
out in the final selling. This was due in
part to the reduction in the short inter-
est enecte4 by the covering operations OF
yesterday. which in turn were the largest
clement in the advance. Traders who
bought yesterday also were disposed to
take profits today.
The more cheerful sentiment over the
money outlook. due to yesterdays devel-
cpments. was not wholly impaired today.
but fears were entertained that next week
would see pinch in the money market
caused by the immediate requirements of
the annual settlements. which might be
carried over into the new year. Decisive
evidence of the easing of the strain In
Berlin was had In the wide recession in
the private discount rate. and intima lions
were given of a probable early reduction
IN the official rate of the Imperial Bank of
Germany. This evidence of adequate pro-
vision for carrying the German markets
through the annual settlements, which
have been looked forward to with appre-
tension, relieves the worlds markets of
one of its most serious causes of anxiety.
The decline in our currency premium
gives solid ground for satisfaction. AL
though there is no money market at the
stock exchange Saturday. speculative
sentiment was inclined to take account of
next weeks possibilities. The weekly re-
views of the mercantile agencies said the
progress of the shrinkage in commercial
activities and gross earnings of railroads
for the third week in December showed
lore L.
than has yet been reported.
\ good impression was made by reports
from some centers of resumption of work
by some of the working forces which had
been reduced. but this impression was Off
set by the consultations of the authorities
of public charities in New York to devise
means for caring for the large number of
homeless and unemployed in the city.
Bank Statement Gratifying.
The bank statement proved more favor
able than the most sanguine expectations.
The 50. 10000 gain in cash compared with
preliminary estimates of from three to
four millions The loan contraction of SIT,
552,4O0 In a week of preparation for meet
ing heavy obligations reflects a gratifying
power OF recuperation by the banks
The changes in the various items are
probably magnifled by the computation on
averages for five days, instead of the
usual six days of banking week. While
no official admissions were to be had on
the subject, the inference is warranted
that some reduction of the outstanding
clearing house certificates figures in the
loaa reduction. The net result is a reduc-
tfon in the deficit to SO, 170,35O which
compares with s54 1O3. 600 the maximum
deficit for the week ending November %.
Bonds were firm. Total sales. par value,
81 $500
United States IS have advanced u per
cent on call during the week