The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-01-20
TRADE VOLUME Big
Over a Million Shares Change
Hands in Two Hours.
RALLY COMES AT THE CLOSE
Reading Leads in Activity, but
shows DuIlness, with Union Pa
eiAc Also Reavy-Bank Statement
Is Good and Aids Marzet-COm-
ment on Hill and Finley Favorable

ment on Hill and Finley FaVOrab bic
New York, Jan. 19.-The level Of prices
at the opening of the market to-day was
generally under last nights closing quo
tations. but in the first few minutes the
market rallied somewhat on covering Of
shorts. only to break again on a renewal
Of liquidation, which "a favorable bank
statement was powerless to stop. until
finally in the last few minutes a fairly
vigorous rally occurred as a result of the
covering Of short contracts over the
weekend.
Activity was on an unusually large
scale for a Saturday upward of 100000
shares being dealt in during the two-hour
session, and some of the Individual trans
actions were very heavy Reading led in
point Of activity. contributing nearly a
quarter of the total number of shares
dealt IN, and was also one of the weakest
features practically all through the ses-
sicn' although on the final rally it recov-
cred substantially from the lowest.
Union Pacific ranked next to Reading in
volume Of transactions, Hquidations being
also apparent here on large scale. but
while there was no disposition TO give
any aggressive support 20 this stock,
there was said to be good buying of it on
a scale-dOwn Liquidation was not so
much in evidence in st. Paul as on the
dropped 10 a new low level. the decline
preceding day, and although the price
appeared to be rather more the effect of
operations for the fall than Of real selling
of long stock.
Fairly good strength was shown in a
number of issues, including some Of those
that had led the decline, and while there
was a continuance of the sinister rumors
yesterday, less attention was paid to
them.
Bank Statement Is Good.
The surplus reserve of the associated
banks is now $1S.460000. or about S2.O00.0o9
in excess OF that Of the corresponding
date a year ago. An interesting feature
OF the bank statement was an increase. Of
over S5,O00,OO0 in loans. probably reflect
Ing the transfer of loans frons Europe to
New York. All matters of general fnan-
cial moment We're clearly subordinated
as the week closed TO the purely specula-
tive LIQUIDATION that was evidently in
progress in the stock market
Questions OF railroad earnings. the rates
for the use Of money Gn call and on time.
the course Of the foreign exchange
market, and even the muCh-discussed
future issue Of new securities of one de-
eruption and another We're regarded as
merely minor market influences. Atten-
ton wholly conveTged upon the selling OF
stocks that were going on that was very
81 al an
doubt the stock market was hurt during
the week by u number OF special inhu-
ences- The statements Of James J. Hin
and President Finley. Of the Southern
Railway. on the subject OF the needs Of
the railway companies. while presenting
some sound and strong doctrine were
made for the obviously worthy object Of
inducing some serious thought in legisla-
tive halls regarding the problems now
confronting the cOuntry's business.
OF similar effect was the news Of the
Chicago and Northwestern Railway Com
pany's $25,e0o0o0 stock issue. the dissolu-
ton Of the Erie series Is, convertible bond
syndicate. the failure Of the Amalgamated
Copper directors to raise their company's
quarterly dividend rate. and the preva-
lence of an impression that hesdividcnd
on United States Steel common stock
would not be advanced in the immediate
future The precise reason for the fall
in the market during the week was. how
ever, according 10 those likely 70 be in
formed on such subjects, an unloading OF
stocks held spcculaJively for the rise by
various large operators who managed
with difficulty or by the aid of temporary
assistance to tide over the relaxation in
the money situation or were compelled
by their broker to do so to liquidate their
holdings. The usual rule on occasions of
this kind is for a selling movement 30
run 90 just as great extremes as the
previous buying movement did. and from
every logical point of view it seems. as if
these extremes on the down side Of the
market had already been reached.
stocks Now Good Investments.
Spectators for the decline at such
times press their advantages with lust as
great daring and lack of prudence as
spectators for the rise did before them. I
and in their utter unwillingness to see /
anything good III the situation they pay /
no heed TO questions as TO the interest /
returns. presenting prospects of the /
stocks they are selling. and forget that /
there are points at which their stocks /
thus sold will pass into the hands of in /
vestors.
t1N tttA a.. llllo d0lltiL OF the market rs D
concerned, therefore. it must be pointed /
out that ..9me of the best railroad stocks /
in the country are now selling at a level 4
where the return on them is Us great 1
and i'm many instances greater than can
be obtained by lending money for a long
period in the open market. without reck- \
oning at all on the great advantages pos
seSsed by all stocks over any other form
Of investment in the possibilities of an /
advance In their market price Consider /
ing the extent of the liquidation in the
market and the rapid accumulation of /
money at all the worlds leading fnan-
cial centeTs, grounds for the gloomy
view of the money situation that seems
to prevail In speculative circles in Wall I
street for the time being seem entirely
wanting. 1t is said that money thus
heaped up will speedily be drawn upon
by the railroads and other corporations
for the purpose of charging their bust
ness. 1t is certainly a queer state of af-
fairs in the business life Of the country.
and one never before presented when
any prolonged declining movement can /.
set in in the price of stocks caused bv
railroad borrowing with the idea not Of
attracting business by competitive offers /,
Or creating new business of any kind. or