The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-02-02
STOCKS AGAIN BREAK
Rally Maintained for a Brief
Period, Then a Collapse.
MORE WEAK SPOTS ARE FOUND
Proft-taIinE Aids Depression, and
Despite London Buying Foreign
Support Is WeaIS-Union and south
ern Pacific Statements for Decem-
Der show Smaller Increase.

Der show smaller Increase.
New York, Feb, 1.-The skepticlsm not
uncommonly expressed at the close of the
stock exchange session yesterday as to
whether the security market could hold
the rise in It that had occurred during the
dag was Justified by to-day's events
Prices Of stocks lost all their previous
gain and somewhat more and at one time
quotations were down very nearly 70 the
low average level made earlier in the
week, that is TO say, at the low record
level of the year.
From this point. however, a rally set IN
which carried prices upward about a
point; but for the most part closing quota
tons still showed net declines of between
one and two points. Opening prices were
somewhat above those finally made yes
terday. but they proved to be the highest
Of the day
They were maintained for a time. but
the market began to recede and finally
broke heavily. Reading falling 4ss points,
AmaIgamated Copper 2ls. Union Pacific
gts, with proportionate declines elsewhere
Pressure was not only brought to bear
against the standard stocks, but the spec
ulative interests working for a fan con
tinued their policy of hunting for possible
weak spots IN places hitherto relatively
undisclOsed chiefly in the Industrial list
The American Smelling and Refining
shares were the object of a special attack
and a raid was made generally upon the
stocks in which there were, according 70
common suppOsitiOn. pool holdings for
the rise still unliquidated- More deter
mined resistance was shown 10 the drives
made al il, and operators for the decline
were quicker than they have been at any
past time TO take the profits that awaited
them. London houses We're, or appeared
10 be. buyers of stocks on a larger scale
than they recently have been. and finau-
ciaI sentiment in the foreign markets
continual lowering of rates for the use Of
was generally improved owing 10 the
money.
Railroad Reports Aid Bears.
Those who endeavored to find an expla-
nation of the recurring weakness of the
market in to-day's budget Of news were
no less at a loss than they have been for
many DAYS and weeks past. The Union
Pacific and Southern Pacific Railroad
companies published statements of their
December earnings, the Union Pacific
showing an increase in gross Of SSi50ol
and in net Of S2I7.000 while the Southern
Pacific reached a gross increase of 81, $50
go. Of which SOL 900 was saved in net. The
Union Pacific statement was, of course,
not as favorable as that of its sister or
glnization. and responsibility for this is
undoubtedly 10 be laid al the door Of the
severe winter conditions in the West and
Northwest. from which all the railway
lines in that section are now suffering.
IL is admitted however that the current
tendency of railway earnings is TO exhibit
"a smaller and smaller Increase in net, ow-
ing 20 the effect of general causes. such
as the higher wages paid to labor and the
greater cost of materials and commodities
used I'm railway work.
Money rates to-day were practically the
same rs yesterday. showing in no way
the effect of the temporary locking up
Of funds by the local banks arising from
the city of New YOrk's $4,000 coo bond Of
fering to-day. and from the intake by
the government from the banks through
Ont the country of 100000 of the Treas
Ury $ special deposit fund
Bids for these city bonds appeared TO
Ee at prices slightly. although but very
last similar OCCASION of the kind; and il
was the consensus In financial circles
that considering the state of the money
market and the fact that railway com
panies are offering their shOrt-term notes
on "A basis yielding returns varying he
tween and per cent, a sale Of a large
quantity of municipal stock az figures
calling for a rate of interest payment be
low per cent represented a good price
for the issue.
High Grade of Security.
It is 10 be remembered. of course. that
the bonds Of the city Of New York rep
resent a grade Of security only second tC
that of obligations of the Federal govern
ment 1t was thought to-day that IN,
bank statement might not be as favorabl,
as its immediate predecessor. as IL wa.
estimated that the banks had lost dur
ing the week between 81, 800 900 and s., 800
COO
Presumably the bank loan account
should show a reduction. but il was real
tied that whether it would or not wa.
beyond any ones telling. The most i'm
poTtant event of the day was the an
nOUnCement before noon that a prominent
banking house had engaged $4,000 IN
London to-day for export 90 this country
Three hundred thousand pounds IN bullion
were offered fer sale in the open LOndor
market. and of this amount the banking
house in question secured One-thiTd. De
spite this engagement sterling eXehang,
continued its recent weakness, falling be
low the normal point at which gold can b.
imported at a profit, and It was conceded
that there was every probability that oui
bankers would secure a considerable por
ton of the large shipment of gold from
South Africa due TO arrive in London on
Monday.
All this raises many interesting ques
tons regarding the immediate future .
monetary conditions The Bank of Eng
land having so REINFORCED its cash hold
ings that its proportion of reserves TO LA
biiities now stands at a comparatively
high figure, is a less eager purchaser o
gold than IL was a few weeks ago. Never
theless. "a renewal of the movement o
gold from London to this side can hardly
be looked upon with pleasure in the Eng
lish market
Il emphasizes the fact however whiCl
the great banking interests have ali alOnl
maintained, that our indebtedness to Lon
don is and has been much less than la;
been commonly supposed. and that it ha,
been only by our f0rbearance that ",
have not taken gold from London in re
cent months.
CHALLENGES USE OF NAME.