The Washington herald., 1907-10-22
MARKET Is STRONGER
Clearing House Committees
Report Factor.
LARGE BUYING MOVEMENT
American Ice and Consolidated
steamship Particularly Weak-LOn-
don Executed Investment Orders,
Prices Advance in Most Instances.
Chain of Banks Held Dangerous.

New York. Oct 21.-Prices Of stocks
reflected promptly, as they were bound
to do. the relative clearing up at least
OF those unfavorable conditions which
developed with such surprising sud
-denness in the closing days Of last
week.
The statement OF the investigating
committee of the clearing house asso-
citation. issued yesterday. that the finan-
eial institutions. whose standing has
recently been called in question
were solvent, was perhaps character
tzed by certain degree Of reticence;
but it was nevertheless unquestionably
reassuring and led from the very out
set to trading on the stock exchange
to-day to the purchase Of "a very con-
siderable quantity of stocks for the
purpose Of retiring short contracts.
Large Buying Movement,
During the day there were no fur
ther unpleasant developments, and a
sense OF relief over the great change
for the better in the situation rapidly
gained ground and resulted in larger
buying movement Certain securities.
such as the American Ice securities
stock, ard on the curb market the
consolidated steamship bonds were for
reasons that needed no explanation,
particularly weak Aside from this,
however, the market was universally
strong. and the upward movement in
prices was especially assisted by pur-
yr-h hiFn
ii was estimated reached 1000 shares.
In London, too as in our own mar
ket, considerable speculative interest
for the decline in American stocks has
been created; but there was no doubt
that much of the buying by London
houses to-day represented the eXecu-
tion Of Investment orders.
Atmosphere of Strength.
In the early part Of the day the mar
ket here after its initial nervousness.
continued 10 be exhibited over various
aspects of the financial situation, but
the urgent desire to buy stocks was
renewed later. and it carried prices be-
fore the close TO net advances in most
instances of between two and five points
IN the active shares. which. although
they We're not wholly retained up 10 the
close of the day, still gave TO the mar
ket an atmosphere Of strength such as
has not been impaired 10 it for a month
past
Fundamental reasons for the recovery
in prices to-day were of various sorts
Whatever may he the aftermath OF re-
cent difficulties, the effective Job OF
financial purging that has been success
fully completed by the managers Of the
clearinghouse association is cause for
general and deep-seated thanksgiving.
A danger in the bank situation. which
if latent has been at all times present
in the minds of the citys substantial
banking interests. has been the chain OF
bank establishments that has grown up
here under the control Of a certain group
Of individuals. This has been a system
whereby control of one bank was pur-
chased by money borrowed upon the
stock of another bank, and so on until
a number Of banks were consolidated.
Day of Reckoning.
Under a single ownership means a
speculative purchase. the sum Of money
paid for the stock of the original bank
being the sole margin. It has not beer
so easy, however. to find remedies for
this state of affairs. As long as not one
Of those banks was placed in a position
where it had to apply to the clearing
house for assistance, the clearing house
was forced to keep its hands off. But
the day Of reckoning. however long post
poned, at last came. and it is now ap-
parently past with its work fully done
with "a minimum Of discomfort 10 the
financial community.
a reassuring incident Of the day was
the decline of nearly a half-cent 10 the
pound in the price Of sterling exchange
which removes all possibility of gold ex-
UoTrc Fv fine rH4r f4rrs.ra