The Washington herald., 1907-12-30
WEEK PROVES DULL
Wall Street Feels the Lack
Of True Money.
OPTIMISM AT THE CLOSE
Feeling That Situation VIII Be
Easier, Through Money Secured
from Western Banks, Common la
New York Banking CircIes-Funds
Sent and MOre Crops Expected.

New York. Dec. 29.-Last week. taken
as a whole. was the dullest Of the year
thus far in the stock market, partially
by reason Of the usual holiday inactivity.
but more because Of the operation OF
special influences peculiar 70 the present
time. Time money is not to be had now
for the use Of Wall street. that is to
say. II cannot practically be had since
quotations for time funds Of Is per cent
for thirty CT sixty days are such as to
prohibit borrowing
Few spectators. on the other hand
care 10 buy stocks for the rise when re-
newals Of call loans have 20 be made
daily. as they were most Of the time last
week az % per cent or above. except on
occasions when the market is being
moved by the presence OF large public
buying.
Higher Rates Feared.
When money rates are at these figures
the fear Of purchasers Of stocks on mar
gin Is that much higher rates stllk may
be quoted at any moment. Up 20 a week
or so ago the impression was very gen
eral in Wall street that. by the middle
Of next month. az the latest. the money
situation would be IN very much easier
shape The feeling was that By the time
stated the Western banks would get tired
Of hanging on 10 their money and would
desire 20 obtain the tempting price Of
fered therefor by borrowers in the great
financial centers.
This optimism was modified somewhat
in the fore part OF last week by the re-
tention of the premiums bid here for the
use OF currency. although il again re-
CURED when AT the weeks end the pre-
mium substantially disappeared under
heavy offerings Of cash in the currency
market by Western banks that have been
boarding H. Our best local bankers real
ize that the time IS not yet. perhaps. 20
say that this symptom OF financial strain
is wholly over; but confidence is stul
felt, however. that after the end Of the
year there viii De q return to this center
of a certain portion OF the large amount
Of money sent 10 the West and other sec
tons South for ordinary crop-moving
purposes. and. Indeed. there Is absolutely
no question that the financial situation
proper is constantly and steadily lmprov-
ing
Loans Being Repaid.
The loans Of money advanced 20 naees-
sitous individuals and firms during the
panic days are being satisfactorily re-
paid. the liquidation Of accounts carried
over in one way or another during these
times is also going on enectualIy and in a
way that IS disturbing nobody. and the
local bank position is returning 70 the
normal with giant strides
But a further important factor IN the
security market just How, is. OF course.
the contraction in general business. that
is manifestly in progress. and the ques-
ton as 20 the probable length OF time that
this is 90 continue Business in certain
quarters seems 10 have suffered a species
OF evaporation. and IL is undoubted that
the earnings Of railway and Industrial
corporations for the present month viii
make a comparatively poor showing.
Conversely the very acuteness OF this
depression affords one of the strongest
grounds FOR hope THAI Il VIII be short
lived. If the onset Of the curtailment in
business had been more gradual and i'm
sidioUs and If 1t had not come. as il
were. with q rush, the reasonable appre-
heusion might have been that IL would
last for long period, but coming in the
manner that II has the conclusion is not
Illogical that II is 100 severe TO be cx-
ceedingly prolonged.
The stoppaga OF orders from retailers
that has taken place must result before
a great while passes In such q sweeping
away Of stocks in retailers hands as TO
require "a considerable and rapid replen-
isLment.
An Encouraging Feature.
One Of the most encouraging features
Of the present state IF affairs is the
fact as attcsted by all careful observa-
ton. that the quantity Of unsold goods
and commodities in the hands Of retail
establishments is now much smaller reIa-
lively than ever known before on a sim
liar occasion; while as regards the manu-
features. the shutdOwns and short work
ing hours that have been arasJ,caIly en-
forced by them are preventing them from
making stock" as they often have done
before under corresponding circum-
stances. and has immensely increased the
efficiency Of the laboring forces still kept
~ work
The great fact Is TO be remembered
that people IN the entire agricultural sec
ton Of our country West and south, are
more prosperous than they ever have
been since the national life Of the coun-
try began. and that they will. as soon
IS existing supplies Of merchandise in
their hands are exhausted. appear in the
market again as large buyers and con-
sumers.
The year before US may be one Of q
slow and ftful convalescence in busi-
ness sense. and viii have TO rest % a
greater or less extent under the adverse
spell Of the coming political campaign:
but it is stiT the belief of the wisest
people in the financial district that it will
be a year Of Improvement from the Wall
street point of view.
Change for the Better.
Just as prices OF stocks this year have
business. so they Will discount a change
for the better long before the bright days
actually come. After the great decline in
prices and business depression of 1903
the stock market began 70 advance again
in March. 1901 although the year 1904
was not a good business period.
one development that ought TO be look
ed for is a reduction of the quantity of
bank loans in comparison with bank de
pOsits. The returns OF the national
banks 10 the Comptroller Of the Cur
rency on December 8 show that their
loans are, despite the enormous stock
market liquidation of the year. nearly 10