The Washington herald., 1907-12-29
STRENGTH In MARKET
PrOfit-taking Alone Stops the
Upward Movement.
LITTLE GENUINE LIQUIDATION
Developments All of an Encourage
Ing Nature, and Bank Statement Is
the Best for Several Months-In-
dustriaI Plants Resuming and Ont
look in All Lines Is Excellent.

New York, Dec 9S.-The eager desire
on the part OF spectators for the decline
10 recover their stocks that set in with a
rush yesterday caused the price of the
leading issues on the stock exchange to
open to-day In several instances full
point above their close yesterday after
noon. and In the first three-quarters OF
an hour of business the buying continued
with such effect that considerable further
gains We're recorded.
Then the inevitable profit taking began.
the same houses and operators that fig
ured in the buying playing an equally
conspicuous part In the selling. aud the
market declined so that good share of
the early gains were lost The majority
Of stocks. however. again closed at ad-
vances. and the days results plainly
testified 70 the existence of an oversold
condition of the market. or what was an
oversoid condition a day or two ago.
Little Genuine Liquidation.
The dealings. of course. were Of an
ultra professional order, but they were
significant of a greater elasticity in the
market than has been commonly sup
OL
week as a whole, they showed too plainly
that speculative selling of stocks does
not now result in any appreciable amount
of genuine liquidation. and it does not ap-
pear possible that speculative sellers of
stocks recently have managed 10 extract
any profit from their ventures, II. indeed.
they have not been compelled to suffer
losses.
Developments to-day were all along the
line OF yesterdays encouragement. The
premium on currency was depressed to
the vanishing point, and the corre-
spondents of country banks here reported
an increasing number of offers from their
clients TO sell cash IN the New York mar
ket
This all reasonable probability marks
the near end of the currency premium.
The same tendency also exhibited itself
to-day in an entire absence of demand
for new gold in London on the part of
our bankers. which caused large guam
uty OF money previously taken in Lon
don for our account TO be resold there
This is gratifying occurrence, and
the subsistence as well of German re-
quests for funds led 10 general rise in
consOls and other securities in the Lon
don market and put very pleasing face
upon the probabilities regarding the an
nual financial settlements I'm London this
week. Indeed. an early reduction in the
Bank of England's discount rate was to-
day talked Of.
Excellent Bank Statement.
One incident of importance during the
day here was, of course. the publication
OF the weekly bank statement. which was
hsa hac
ing-house institutions have made for sew
eral months. There was a decrease in
bank loans Of 81. 752 400, and an increase
in cash of nearly $3.50, 600. or more than
three times what was commonly esti-
mated yesterday. This served 10 dimin-
ish the deficit in the surplus reserve by
Su,5SO, ,65O-the largest decrease in any one
week thus far since the deficit came into
existence-and brought the figures of the
total deficit down 10 only a little over
$50. .OO0.o60
1t became known during the day that
the Treasury had issued a call for the
return of d small portion Of the public
money now on deposit with the banks,
an event that has been wholly antici-
pated in view OF the reduction OF the gov
ernment's working balance TO less than
A,O0O00o. The days stock market was
wholly without special feature. and was
composed entirely of the general move
ments 20 which reference has been made.
The events Of the week from a financial
point Of view were such as 10 again en-
phasize the conclusion that the stock
market several weeks ago passed the
crisis In its affairs The best possible
proof Of the returning confidence was
that afforded by the altogether inconse-
quential Withdrawals Of money from the
savings banks by depositors. who sixty
days ago gave notice of their intention
10 take out funds.
Ready to Loan Money.
Other indications In the same line have
been the disappearing premium on cur
rency the rapid extinction of clearing
house certificates, and the practical re-
sumption of full cash payments has been
established In our own city. There are
very few banks here at the moment who
are not furnishing to customers all the
money that is required for pay rolls and
other necessary purposes, and there are
really no limits now placed upon the
Withdrawals of money from the banks
by depOsitors, except In cases where
there is reason to suppose that the
money is intended to be sold for the
trifling premium still commanded for
cash funds.
Many. announcements were made dur
ing the week of the deferring or reduc-
ton Of corporate dividends. but they
were all anticipated, and their stock
market effect appears to have been more
than discounted. The buying of CONNER
c!al paper by the banks has increased.
and instances of further closing down of
mills and factories are now very few. In
their place is coming to be substituted
news statements that manufacturing
plants that have closed down are on the
point of opening again.
Perhaps the one matter that has been
more cheering to the business community
than anything else has been the decided |
Sc that has been witnessed in the
ncy Of labor as the result of such
reductions and laying of OF men
We been enforced. The declaration
zen made this week by more than
railroad president that in conse- |
OF these measures OF economy the
efficiency OF the remaining work. |
orces OF the railroad companies has
enlarged threefold