The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-01-22
RALLY AT The CLOSE
Stocks Generally Show Net
Advances for the Day.
BANKERS MORE OPTIMISTIC
Slight Relaxation in Extraordinary
Activity of General Business Pleas
ing In Financial Quarters-ERorts
to Break Prices In Various Stocks
Prove Only Partially Successful.

TO Break Prices in Various Stocks
Prove Only Partially Successful.
New York, Jan. 21.-After an irregular
and unsettled market throughout the
greater part Of to-day's stock exchange
session, during which the movement OF
values was in the main governed by a
continuance Of that liquidation which was
In progress last week, prices of stocks
rallied with considerable violence in the
last hour Of business, leaving quotations
for the principal issues at net advances
Of from one to two points.
At the opening of the session these
quotations were almost invariably above
Saturdays final prices. in response. per-
haDs, 10 higher range of prices for
American stocks in the London market,
but 10 a greater extent, undoubtedly, in
reflection Of the general feeling that after
so severe decline in the market as has
recently occurred, a counter upward
movement was 10 be expected
A rallying tendency was indeed notice.
able throughout the first hours dealings
on the stock exchange, but it was not
very fOrcibly eXeTted Il had only run a
little way when the life that the market
had displayed seemed to vanish. and the
general undertone Of the trading once
more became dispirited. This was the
signal for another attack upon values by
Spectators for the fall.
The particular stocks selected for the
raid were the local traction securities, and
under much selling declines Of several
points took place in the Interborough
Metropolitan and Brooklyn Rapid Transit
shares. The preteXt for the drive was
that the new State government would
make 4 strong effort TO collect from the
traction companies the arrears Of taxes
which it is said are recorded against
them; but the real. occasion for the move
ment was unquesuonably speculative. as
described
Many show Weakness.
As a result. sympathetic weakness once
more spread throughout the market as a
whole. Large drops occurred in inactive
stocks like Chicago. St Paul Minneap-
oils and Omaha. Minneapolis. St Paul
and sault Ste. Marie, and North Amer
stocks again fell 20 the low points
touched last week. Finally. a determined
effort was made 10 depress the price of
Reading common. Sales Of over 1900
shares were made by one broker alone.
but after the price Of the issue had de-
clined somewhat, heavy supporting or
ders in It We're uncovered, and It was ev-
ident that the efforts TO break the
stock We're unsuccessful
II was noticeable while all this was go
ing on that the liquidation in other
stocks was not in large volume and had
come to be of merely dribbllng character.
The suggestion that the market had
passed into the stage known in Wall
street as a sOld-0ut condition became
steady and pronounced, and in the en-
deavOr to get back stocks sold for the de-
cline. the buying Of spectators advanced
prices with a vigOr that has not been seen
in the market thus far during the present
year.
No more than has been the case for
long time back We're there any special
developments to-day Of a financial char
aCteT. The announcement Of the sale by
0oAe9Q three-year per cent notes 10
well-known banking firm had. Of course.
been f0reshadowed. The ease In the
money situation was more marked than
at any previous time, bank renewals to-
day Of call loans being made at 3 Der
cent, while more money was put out be-
low this figure than has been on any sin
gle days stock exchange session for
many months
The asking price for time funds was
further reduced. no money Of this class
being held above 5la per cent for any
period, while firms DESTROYS Of borrowing
it We're as a rule only willing to pay for
The accommodation at much lower rate.
Money Is Now Easier.
Sterling exchange, after rising briskly
fell, closing, however, at an advance of
a quarter Of a cent for the day. No doubt
the easier tendency Of money viii en-
counter from now on the twin checks OF
a withdrawal of funds from this center
by interior bankers who find no induce
ment 70 lend it at the low rates now
ruling and the transfer TO this side of
the Atlantic Of speculative accounts
opened IL the London market at a time
when it was cheaper TO carry American
stocks for the rise there than in New
York Nevertheless, II IS clear that peo-
PIE in banking circles here are inclined to
take d much more optimistic view Of the
money situation than they were a week
or a fortnight ago.
There are indications that there is be
ginning to be felt a slight relaxation in
that extraordinary and sensational activ-
ity Of general business that has been so
long going on and has made such
enormous demands on the money market.
and this is a development that is wei
coined only with delight in financial quar-
ters.
Il has been brought about in part by
the storms and cold weather in the West
ern and Northern parts of the country.
where much more rigorous winter sea-
son has prevailed than in the Middle
West and on the Atlantic seaboard, and
in part by q natural unwillngness by
those charged with the conduct Of these /
enterprises TO make plans for the far flu
ture, in view Of current conditions re-
garding price of labor and materials, and
of financial accommodations
No doubt as much of an influence as
anything in the market to-day was the 1
renewed circulation Of stories Of trouble 4
among those VINO have suffered from the
recent heavy declines in prices: but. as /
the day wore on these stories did not /
at all gain in point of defniteness or /