Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-02-10

counted for about 100000.
It Is probable that the subtreasury's with
drawal Of government deposits late last
week figured in this weeks averages of the
banks instead of last weeks, but large
discrepancy would still remain to be ac-
counted for. The small loan expansion. on
the other hand, failed to show the expected
effect of the large financial transactions
of the week In the payment of New York
city bond subscriptions and the taking up
Of number Of railroad note issues.
The Money Market.
The hardening Of the call money market
yesterday is sufficiently explained by the
showing of the banks. The time money
market today was reported firm and I'M
usually active for Saturday, In sympathy
with the rise in call-loan rates. Sterling
exchange rates were not affected today.
Large arrivals of gold are expected in the
London market on Monday and added in
terest will be taken in the success of the
bids for this gold on New York account, in
view of the condition of the banks today.
Discounts In London rose today. Foreign
takings of the note issues being made by
the railroad companies are establishing for
eign credits for New York account, and
New York's ability to draw gold at this
time Is counted on.
Reports by mercantile agencies of some
quieting of spring demand and retarding
of collections were given consideration, al
tHOueu Tic lcuucuCy 10 dllTlUuteQ u WcAtu-
er conditions principally. The market
closed weak and at considerable declines.
Total sales Of bonds. par value. $7O6,OO0.
Selling Pressure Believed.
The stock market this week has been
relieved from the selling pressure Of the
urgent kind, which carried prices rapidly
downward last week. There have been
spots In the market here and there, due
either to belated liquidation of weakened
speculative accounts or to attack by the
bear party in the effort to renew the fall
kept the tone of the market unsettled for
the greater part of the week, and prices
moved sluggishly and irregularly. The de-
mand which developed at the declines was
disinclined to follow the recoveries.
The bear party, on the other hand, were
not in an aggressive mood and refrained
from following the declines in attempts to
force the market to a lower level. In the
latter part OF the week the market took on a
more assured tone Of strength and the un-
covered bear interest bought more freely
to retire their contracts on the short side
Of the market. The movement of the mar
ket was without notable changes in the
condition OF affairs and represented more
readjustment to the liquidation which has
been effected.
A large reduction obviously has been
made in the speculative accounts on the
long side which had become vulnerable by
the considerable decline, the calls for ad-
dHtonal margins and other consequences
which follow a downward course Of prices
Not only In this market but in London also
there IL known to have been extensive
liquidation Of speculative accounts In
Americans. With the check to the decline
and the turn in the market there has grown
up more cheerful feeling over the general
outlook and less disposition to fear the
coming Of reactionary tendencies in general
business and industry.
Feature Of the Market.
A feature of the market was the develop
ment Of an investment demand for stocks.
which made itself manifest in the buying
in small parcels, The stock exchange au-'
thorities were prompted by this develop
ment to resume the record Of transactions
in odd lots on the tape to comply with
the desire of clients of brokers to follow
the official record Of the execution of their
orders. Buying of this character Is not
an important element in itself in affecting
movements Of prices, but 1t is regarded al
ways as highly significant of the investors
estimate Of true values.
1t has been almost entirely lacking in the
market for a long time at the higher level
of prices, which served to reduce the rate
of the investment yield on securities to a
figure that was unattractive in comparison
with the high ruling interest rates in the
money market. The easing Of the money
market has helped in the readjustment
Besides the Importance Of the Investment
buying OF stocks as reflection of financial
judgment on values this demand is of a
more permanent character than the ordi-
nary speculative operations in the market
and serves to reduce the floating supply of
securities and to effect a wider distribution.
1t is notable, however that the bond mar
ket has been little affected by this apparent
increase In the supply of capital-seeking
investment. Neither has the distaste for
the appearance of new securities In the
market been modified, the announcement
OF an intended note issue by a railroad COM
DaQy rumOrS of
serving to depress the stock of the COM
pany affected.
Supply Of Capital.
The question Of supply of capital to ;meef
the large requirements of the railroad COM
panies for Improvements to meet the pres
sure Of traffic offering continues to occupy
large share of attention. Suggestions have
come forward, however, of means being
sought to meet the conditions. This has
doubtless assisted in forming the more
cheerful sentiment over the outlook.
general policy of retrenchment on the part
of the railroads seems to be decided on
which will confine such expenditures to the
completion of works already undertaken
until conditions for securing new capital
improve. general movement also is dis
cernible in the railroad world toward un-
dertaking an advance in the rates for
freight to etlualize the growth in all
branches of their service.
The effect of this growth Is marked IN
the returns of net earnings now coming to
hand. in which q general declining tendency
is perceptible owing to the increase In ex-
penses oyertaking the gross earnings. The
increased animation of the later rise In
stocks owed not q little to the impression,
emanating from Washington, that the gov
eminent authorities might be found compli-
ant toward an effort by the railroads to ad-
vance freight charges. An opinion also has
gained form that the large demands for
capital already put out by some OF the
gre9 railroad systems represented q scram-
BILE to obtain the largest possible resources
to forestal other demands.
The urgency Of this competition served
to aggravate the pressure on capital sup
sentiment has been caused by the belief
that some measure of moderate reform of