The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-01-25
MARKET Is LIFELEOS
Tendency Throughout Week
Toward Contraction.
PRESSURE ON HILL CEASES
Wall Street Hears Secretary Shaw
Proposes TO Withdraw $4,000, 900
Special Deposits During February.
Claimed Action VIII Not Affect FL
naneiaI Situation In New York.

New York. Jan. 24.-An Of the great Sc
curity markets to-day presented a rela-
lively lifeIess appearance and develop
ments in no one of them were such as TO
call for any particular comment. On the
London Stock Exch4age, where iuctua-
tons Of prices have more interest for our
own market than do those in any for
eign quarter, one Of the dullest days of
the year was passed.
Here the volume Of purchases and sales
Of stocks sank below 100000 shares, as
compared with over S6OOO0O shares yester-
day, The tendency of the home market
has been, in fact, throughout the week
toward a steady contraction Of activity,
and it must be said thar from the point
OF view Of those who are hopefully re-
garding the future of the market. this
condition is more satisfactory than any
other that could be named.
tt is such as to strongly indicate that
liquidation of stocks is over, and that AT
the low level of prices that has been ere
ated enough new buying of stocks had
been brought out to cause slow harden
ing movement in values, unaccompanied
with any such outburst Of speculation as
would endanger the markets ultimate
safety.
To begin with, 1.-THE Bank of England
to-day made a flattering weekly state
ment Of its resources. showing an in
crease Of over 100000 in gold coin and
hrrFl Hnf n
serve holdings against liabilities of 1881
per cent against a percentage Of $3.50
last week
Prices Reach a High Mark.
The Bank o. Frances condition, as ex-
hibited in its weekly statement, was also
improved and the condition Of the Bank
of England was the strongest reported
since September last year. Although
these disclosures took no one by surprise.
they were yet sufficient to emphasize the
advancing tendency in the market that
was plainly in evidence yesterday. and the
early trading prices Of stocks generally
rose, touching on the main the highest
points reached by them since the decline
in values eliminated on Monday.
After this there was. up to the last
hour of business, the familiar phenomenon
Of a practically motionless stock market.
Toward the close prices reacted a little
leaving net advances and declines indis-
criminately scattered. but with changes in
quotations for the most part only frac-
tiOnaL Especial strength was shown by
the Anaconda and Amalgamated Copper
shares, as well as by Great Northern pre-
ferred stock. and attention was once more
rather pointedly directed TO the circum-
stance that the pressure to sell the Hill
group Of stocks, which has so long been
a feature Of the market has ceased.
Advances in the usually little traded in
Toledo St. Louis, and Western common
and preferred stocks, and continuing ac-
tivity in the Observation-Disclosures
shares were observable chiefly from the
fact that the president Of the Toledo. St
Louis and Western Railway Company had
accepted the chief place in the INTERIOR
ough-MetrOpOlitan management
The late reaction in the market in the
afternoon was generally attributed 10 a
rise in call money rates to per cent
although bank renewals and the bulk OF
borrowing earlier in the day had been
arranged on a % per cent basis-and also
TO the circulation of a statement that the
Secretary Of tie Treasury, who is in this
city. had declared that he proposed to
withdraw from the national bank deposit
tories during the month Of February the
$5o,000l0 Of government funds now re-
naming there in the shape Of so-called
special deposit.
Would Not Affect situation.
It is, Of course. no secret that as the
programme of the Secretary Of the Treas
ury in the matter now stands, and as an
nounced by the Secretary. some time since.
does call for the withdrawal OF the
money during the month Of February;
but whatever Mr.. Shaw proposes to do.
It is hardly conceivable that he will take
any action that will bring about re-
currence Of the financial strain from
which business has recently so happily
emerged. An in-gathering of cash by the
Treasury Department must. of course.
take place some time before July / in
anticipation of the paying off. or the re-
funding of the S116G50O00 for 4 per cent
bonds due on that date.
In banking circles to-day the opinion
was generally expressed that a with
drawal from the banks Of the $780, OO.OlO
special deposit funds the operation being
spread out through several weeks, would
not at all iniuriOusiy affect the money
situation. The truth is that this situation
over the country is now becoming very
much easier than any one has looked
for, and the amount of money in the
interior institution that would immedi-
ately flow TO this center upon the main
tenanCe here of a slightly higher call loan
rate than has ruled during the present
week would much more than Offset the
loss of cash that the local banks might
undergo TO the government from the
cause described
Time-morey rates to-day were again
lowered so that money was offered as
low as 81 per cent for six months. while
the majority OF borrowers declined to
pay more than per cent for four months
money. The gain Of the banks from the
subtreasuTy during the week now amounts
10 over $i,5CG00G