The Washington herald., 1907-10-04
MARKET OPENS WEAK
0StenSible London Selling
DepreSSeS Early Prices.
MONEY SITUATION THE CAUSE
Fear of Tightening Makes Foreign
Trading Universally Poor-QuOta-
noon, Believed 90 BE Due to Bears
Failure in Morning Attack.

New York oct. 3.-The course of prices
on the stock exchange to-day was di-
vided into two distinct movements.
In the early part OF the day, and espe-
cially in the hrst hour Of business, the
market was sharply depressed under
heavy selling of stocks for what was
ostensibly the account Of London houses
Opinions differed a good deal as 10
whether these sales really did represent
liquidation for foreign account or were
in pursuance of orders em5natug from
operators on this side of the Atlantic;
but it is probable that certain guam
tiJy OF the sales at least were what they
appeared 10 be-
All the foreign markets were weak to-
day, for a variety Of reasons, of which
one OF the principal appeared to be fear
Of a tightening money situation there iu
the next few weeks. Most OF the recent
Statements of the great foreign national
banks have been poor. although that Of
the Bank of England, which is of most
importance from the point Of view of our
own market. has been relatively good.
The falling of in the bank reserves is
seasonable AZ this time of the financial
statements incident 10 the lst of October
Fleet Movement IA Factor.
There appeared TO be good deal of
selling Of stocks to-day for reasons that
were not made exactly clear. on orders
proceeding from the continent Of Eu-
rope. as distinguished from Great Britain
as there is very little doubt that the
movement Of our fleet TO Western
waters has been productive of much m-
eas5nsss in foreign capitals regarding our
relations with Japan, and must be viewed
as "a definite factor in the financial situa-
tion from now on.
Canadian Pacific was especially weak
in the London market to-day. because of
the announcement OF the management re-
gaTdlug prospective new stock issues
Finally. an adverse influence in the gen
eral market was the circulation OF rI-
m0rs. for which there appeared 60 De
considerable basis that the joint commit
tee composed 0f representatives OF the
railways and Of the steel manufacturers.
have been unable 20 agree upon form
Of specification for steel rails that viii
Rail- Prices an Issue.
The essence Of the trouble here is. of
course. one of price. the railway c1mpa-
nies maintaining that a better rail ought
90 De furnished to them and the steel
manufacturers maintaining that this cam
not Doe done. except at greater cost
Whatever amount of actual liquidation
there might have been in the market to-
day. speculation Tor the fan was greatly
IN evidence. and the rally in prices that
eusged Iu tla afternoon was commonly
thought go Dee the result Of a recovery .oe
stocks sold earlier by bear" operators
who were disappointed over the failure
OF Tie market 90 recsde more than il did
under the mornings attack.
Eight and "a half per cent was the
highest rate paid for cali money, and
this in the first TWO hours Of the Stock
Exchange session. After that time money
was freely oarauabie az lower range.
and the rate sank 10 nominal figures be-
fore the close of business.
Bnnking Conditions Improve.
The outlook for the end Of tho week
bank statement was to-day O. little more
favorable than It was yesterday, owing 10
the disbursement yesterday by the sub
treasury of 81 large amount Of govern
uent money. which brought the net loss
Of the banks % the subtreasury down to
Sl.D1fU 900 for the week. Meantime. sterling
exchange broke under the higher call
money rates, and Jed To "a greater de-
gree of frmness in the price of time
money.
With the present week expires q period
of five weeks during which the Secretary
of the Treasury announced that ne pro
posed 20 deposit S5.go5C10 a week with the
national banks 20 help meet the country $
aU,umual demand for funds
Rely on CorteIyou.
As the cash balance in the Treasury
proper is now over $6oo0010. the govern
mcnt is practically enabled 10 render as
much aid to the money market during the
remainder of the year as it was when it
began to give assistance; and the general
feeling in the financial community thar
Mr.. Cortelyou VIII not permit the tight
ness Of the money market to run 10 eX-
tremes Is an inspiring cause of confidence
at the present time.