Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-08-29
Reaction Followed Opening at
Higher Range of Prices.
BUT TONE WAS CHEERFUL
Slump Charged to Desire to Realize
Profits.
FURTHER DISCOUNT RELAXED
Operations for Foreign Account on
Small Scale-Banks Lost in Opera
tions With Subtreasury.
Special Dlspatch to The Star.

Special Dispatch to The Star
NEW YORK, August 29.-Both the Lon
don and the local stock markets reacted this
morning from the higher range of prices
established in both markets at the open
ing of business Notwithstanding that
fact the dealings in securities at both
points showed real unsettlement. and.
in fact. speculative sentiment retained a
good deal of the more cheerful tone that
has chara cterized the trading throughout
the week.
The reaction in the London market, like
that in New York was generally attrb-
uted to the natural desire to realize profits
after the quite extensive advance of the
-Seek. and particularly in view of the ap
preaching holiday. No change was made
in the Bank OF Englands discount rate, and
the weekly report of that institution made
q fairly strong showing.
There was further relaxation in dis
counts In the open London money market.
Operations here for foreign account were
upon only a small scale. and on both sides
Of the market. As was to be expected, to-
ward the close of the month there was
some hardening IN the rates for loans on
call, although that circumstance did not
appear to cut any particular figure In the
dealings In securities
The banks have lost in their operations
with the subtreasury since last Friday
something more than s., 100000. but as the
Treasury Department has already begun TO
make allotment Of It's deposit with the ma
tional banks, the consequent outlook for
saturdays bank statement Is more or less
obscure
Trading Very Dull.
Contrary to the tendencies shown in the
early part Of the morning the stock mar
ket became extremely dull on the reaction
in prices. and during the afternoon there
were protracted periods when the trading
came practically to a standstiu. There
was nothing at all In the news OF the
morning of novel interest
The dividend action on the Erie preferred
shares, which was announced virtually at
the close of business yesterday. appear to
be construed favorabiy Notwithstanding
Mr.. Hills criticism upon the matter made
public this morning. AT any rate. the Erie
issues shared in the early strength of the
market and participated In its later irreg-
ular tendencies. New York Central was
rather not a bly, weak, with renewed discus
sion of the likelihood of a readjustment of
the dividend payments on that security.
There was otherwise practical absence
OF news or gossip except Of a routine and
technical Character relating to the dealings
in the railway list. or. for that matter, to
those In the Industrial and miscellaneous
shares and the traction group. O..
Reduction in the Short Interest.
The dealings In general indicated con-
siderable reduction in the short interest.
the result of the continuous rise In prices
since Monday but evidences were not want
ing today that bearishly disposed operators
We're renewing their activity.
The business of commission houses was
upon a very small scale. and was repre-
scented in large part by the continued execu-
ton of buying orders for small lots of stock.
As is usually the case. there was much
conjecture as to the ason for the reversal
in the markets form outside of the purely
normal explanation already set forth. and
there was considerable unanimty of opinion
that One factor in the reaction was the re-
opening nsNt.week OF the proceedings in the
Standard Oil case