The Washington herald., 1907-01-08
MARKET IS IN DOUBT
Hartman Inquiry Makes
Traders Act Cautiously.
WEAKNESS IN UNION PACIFIC
Several stocks, such as Steel Com
mon, Rubber, and Il Number of
Railroad and IndustriaIs, Show
strength-street Takes Pessimisfic
View of the Disclosures.

New York. Jan. THE feverishnes!
and irregularity that developed in IN,
stock market to-day was not at all IN
expected by close daily watchers of IN,
speculative trading During the last tw,
days OF last week the market was ex
tTemely bouyant, and certain stocks ris
ing with n violence not witnessed befor,
in any security for months previously. IN
the course Of this rise a large portion o.
the speculative interest for the fall in IN,
market was eliminated. and equally large
profits suddenly accumulated for fortu
nate holders of stocks.
It was only natural after these events
that there should be a period of profit
taking in the market. accompanied by
more or less recession in prices, and the
selling movement having its origin IL
these conditions was, therefore. not At al
surprising. The general impression In the
financial district over the course OF thC
market was that considering the Iquida-
tion that went on and the weakened posi-
ton of values, technically owing TO the
retirement on such a large scale % The
short interest as was last week enforced
the stock market had held during the day
with remarkable strength.
Many show Advances.
Indeed. among the active stocHs there
were as many at the end of business
that showed advances as declines. The
selling was heaviest. of course. in those
stocks in which advances had recently
been the largest, while there were OBJ
viouSlv special reasons TO account for
liquidation IN the Union Pacific shares.
The Union Pacific, Southern Pacific, Great
Northern. Northern Pacific, Reading, and
Amalgamated Copper We're the principal
stocks showing declines. while gains of "a
point or more were made by the Brooklyn
Rapid Transit. Pennsylvania, and United
States Steel preferred shares.
Other issuses manifestiug special
strength were the United States Rubber,
United States Steel common, nterborougn
Metropolitan, and several prominent rail
way and industrial stocks. So that it is fair
10 SLY that reviewing the days market
as a whole it was more conservative than
depressed.
II is in fact, very doubtful if as large
a fan rs was recorded in the case Of
many Of the stocks named would have
taken place had there not been "a sudden
squirt in call money rate in the afternoon.
which added 20 the general uncertainty
regarding the immediate future of prices
Cali money, which had lent during
the earlier part OF the day at between S
and 6l-2 per cent nine-tenthS of the days
borrowing being thus arranged. rose 70 10
per cent in the last half hour Of the
stock exchange session.
No UarrirUlHT Ta9 son for this event an
peared. and the matter was attributed in
certain circles TO q desire ON the part
of the banking element 20 place a check
upon what might prove 10 be a too ardent
speculation for the rise
While there has undoubtedly been since
the beginning of the year an immense
improvement in the money situation. the
state of bank reserves here is hardly such
as 10 provide a basis right at the present
moment for a widespread and uuTe-
strained buying of stocks. tt may very
well be, therefore, that temporary OBJ
stacles have been deslguedly thrown in
the face Of such a movement in prices
such as twas seemingly inaugurated at
the close Of last week
Pessimistic View Taken.
Admittedly to-day the view taken in
Wall street OF the disclosures made at
the Interstate Commerce Commission in
vesugauon of the Union Pacific system
was not of such pleasing sort as was
popularity entertained in the first instance.
The primary impression of the results Of
the hearing was that they afforded con-
viucing testimony as TO the large financial
resources of the Union Pacific system.
To-day the question was generally
asked, based upon testimony elected by
the commission, and not published until
after the close OF the stock market on
Saturday, whether such practices as were
revealed We're such as To rebound TO the
credit of American corporate manage
ment in European financial centers or
would enlarge the confidence OF people
IN our own country in such concerns.
There was, also, to-day rather more ad-
verse conservatism than was the case on
Saturday of the end Of the week bank
statement. several authorities incliHins to
the opinion that the Unexpectedly poor
character of the statement was due
largely to the withdrawal Of money by
the trust companies for the purpose OF
meeting the requirements of the law in
regard TO reserve balances. The money
thus taken in by the trust companies. of
course. is permanently locked Up in the
vaults Of these organizations and cannot
be used as a basis for the extension Of
credit
The time money market to-day con-
tinued TO show increasing ease, money
being offered by practically all lenders
for all periods at per cent; and the
money situation in London evinced further
decided relaxation.