The Washington herald., 1907-01-06
Strength Which Developed
Friday Being Maintained.
ANALGAMATED COPPER BOOMS
Coming Quarterly Dividend Ex-
peeted ia Bring Pleasing Develop
mcntS to sf0cl1hOIders-BanI1 state
mcnt On the Whole Is satisfactory.
Confidence an Union Pacific Values.

dieation of that optimistic feeling regard
ing the future Of values that has become
pronounced during the present week.
The immediate occasion for the rise in
prices yesterday appeared 10 be the stock |
market Influences OF the sharp advance in I
Amalgamated Copper stock and the dis /
closures made at the investigation of the /
Union Pacific system by the Interstate
Commerce Commission. showing that /
since last June the investment holdings OF /
the Union Pacific company have been in |
creased by S103, o00oOo half Of the money |
required to make these purchases having /
been taken from q free cash balance in the |
company's treasury.
The rise in Amalgamated Copper has /
been foreshadowed FOR some time past by /
the visible strength Of the price OF copper /
metal ana the great activity and rise in /
prices in the Boston market in the shares |
of many of the country's leading copper /
properties. 1t appears almost certain that /
the forthcoming quarterly dividend upon 4
Amalgamated Copper stock which will be /
declared later in the month, will -be at a 1
considerable advance. and il may be that /
at the same time there viii be other de !
veloDmenJs highly pleasing TO the com
pany's stockholders.
In the instance of Union Pacific. atten-
ton in Wall street naturally rests upon /
the fact that although the monthly earn
ings OF the company, as they are reported,
continue TO show large increases in net.
these reports take no account of the rev
enues derived from the ownership Of Sc
curities of which such an interesting rcve-
lation has just been made.
Buying Back of stocks
The advance ia the general market in T.
the last two days has been no doubt
partly due TO the buying back Of stock
sold speculatively for the decline it be-
ing invariably the case that during such
d fan in price as has recently taken place II
a larger short interest in the market is
created than is commonly estimated
The Improvement in the market. how
ever must be credited in the main to
substantial conditions making for "a
change in financial sentiment The
money situation has become definitely
easier. both here and abroad, there has
been d heavy liquidation of weak specu-
lative accounts open for the rise and the
profits of business throughout the coun-
Try show no diminution.
Nearly all the principal stocks in the
market to-day made net gains of over d
point, and the only feature of the rise
in values that occurred was that IL Was
general Closing prices We're a little UNI
Ger the best owing to a rather brisk sell !,
ling movement that set in after the pub
LEGATION of the weekly bank statement ,
But this movement was shOrt-lived and
the succeeding rally carried quotations
once more nearly TO the highest level OF
the day. The bank statement was Of the
same sort that close observers expected =
after study of the Bank of England's re- i
port, made public earlier in the week. This
is a week when the great financial insti-
tUti0ns in all the worlds great centers
generally make poor exhibits because in
these exhibits are reflected the operations
and misunderstanding incident TO the
close of the calendar year 2
Bank Deposits Increase.
Such transactions usually assume therl
form of large increase in deposits, with
a corresponding extension of loans, serv-
ing thus TO diminish reserve balances.
This was strikingly shown in the com !
piIations of the Bank Of England and the
Imperial Bank of Germany on Thursday,
and was again exemplifed in our own
clearing house return to-day. The de
posts Of the associated banks increased
over S19.0O0,000 and their loans enlarged
over 000 The movements of cash
in and out of the banks as they were
made known were at variance with pre-
vious estimates thereof the banks show
ing a loss of $4O21O0 rs against calcula- ]
tons yesterday of a gain of over $780,
900. There IS no doubt, of course, that
the cash position Of the banks IS much
stronger than was to-day reported. AS
II was, the bank surplus was represented
as falling once more almost TO the legal
minimizing
Wall street for once seemed to take the
bank statement at its true worth and to
recognize that there was every probable 7
ity that corrections in the return later in
the month would exhibit the true state !
Of affairs. just as It did in January last
year.
There was no other development of in ,
terest during the day. The improvement
in financial temper that was manifested 5
was. it may be noticed, as strongly
marked on the great foreign exchanges
as on our own. Prices of stocks on the
London market to-day were bUoyant, and
there were excited dealings at rising quo I
tations on the curb market in London af-
ter the close of official business hours
there Decided strength also ruled in 7
Berlin and Paris. I
Sterling Exchange Advance.
one feature of the general situation \
that appears partially responsible for the
firmer tone of the foreign markets, espe- i
cially in London, is the advance here dur
ing the week Of full - cents in the
pound on sterling exchange This is in !,
response TO remittances Of money from 7
this side to England that always take )
place at this season of the year; but the \
movement had also undoubtedly been
brought about in part by covering puT- :
chases Of sterling made by spectators in \
exchange who based their. calculations i
several days ago upon the idea that the B
same money stTipgency that then obtained / q
would hold during the early portion of the >
present year and would keep sterling at g
low figures.
The effect of the rise in sterling in Lon
don has been. Of course to diSsipate the
fears recently entertained i'm London thar 4
a further drain upon English gold SUD-
plies might be made in the near future by
our bankers.
What has been going on in all the
worlds markets during the present week
has been plainly a recognition of the fact
that pretty broad Teadjustment of finan-
cial conditions was accomplished i'm the
latter portion of the past year and that a
the prices of securities are now upon d a
mere solid basis than they have been for =
a long time previously. .
WARRINGTON CATTLE MARKET