The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-02-01
BRIEF MARKET RALLY
Lowest Level of the Year Is
Touched Soon After.
BANKING INTERESTS BUYERS
Bulls Are Encouraged by Evidence
of Strong Financial support, and
Firm Undertone Is Presented-LOn-
don Settlements Pass on Satisfac-
torily-Cau and Time Money Low.

New York, Jan. S1.-The long expected
rally in stock market prices occurred to-
day. and quotations for stocks made net
advances of between one and three points.
Few among the active stocks, how
ever rose more than two points.
The recovery was. of course, considerably
overdue, according 10 the standards upon
which calculations Of such matters are
usually based.
Such a continued fall in the market with
out any reaction, as has been witnessed
in the present month, and preceded by a
weakness almost as notable for many
weeks before that, is nearly without pre-
cedent in stock exchange annals. II
must be admitted, however, that the up
ward rebound in values to-day was not
of a sort.as TO afford any definite prom
Use of the markets future. 1t was based
almost entirely upon the buying back Of
stocks previously sold by spectators for
the decline, and it was not discoverable
that commission house business during
the day was materially increased.
The low prices have not seemed, in other
words. to result in any great amount of
buying Of stocks by investors. The mar
ket opened with advances and declines ir-
regularly commingled, rallied a little, and
then fell off TO the lowest level yet
touched during the year
Bankers Come 10 Aid.
It was commonly said that at this point
there were for the first time in weeks,
or even months, evidences of a heavy ac-
cumulation of stocks by banking interests
of the first grade. Such evidences are
not always trustworthy, but the impress
sion became widespread among the rank
and fle of the market operators that
powers OF high financial rank were at
last giving steadfast support to the mar
ket, and this served naturally to heighten
the incentives already afforded for the
retreat of the short interest After this
time. at any rate. the market presented a
hrmeT undertone. and in the latter part
Of the day became positively strong.
In one respect the days transactions
in stocks were no different from those OF
their immediate predecessors, In that they
We're based on no matters OF news making
particularly either for OF against prices
The London financial settlements passed
Of satisfactorily, proof being afforded
in the English market as well as in our
own, Of the great liquidation that has
taken place in American securities and or
the easier financial conditions proceeding
therefrOm
For a fortnight back stories have been
heard Of the alleged difficulties of dealers
in American stocks that We're 10 be con-
fronted at the settlement to-day, but no
such difficulties arose.
The Bank Of England in its weekly
statement. reported slightly less pro-
portion of reserves held against liabilities
than it did a week ago. but made q bet
ter statement than it did for the CORE
spending date last year. Improvement IN
sentiment generally was visible in London
and the rates for the use of money IN the
omen market there declined under further
large offerings Of funds from the CONT
nent Of Europe
Call Money Rates Low.
Although there was converted into
the subtreasury to-day 100000, repre-
senting the payment by the Central
Pacific Railway Company Of a semi
annual installment upon its debt to the
government. and although preparations
were in progress for the City Of New
Yorks 100000 bond offering tomorrow,
and the monthly financial disbursements
on the same date, these including the
payment by the national banks 10 the
government of half of the S12C0o.c00 spe-
cial deposit fund placed by the treasury
with the national banks in December; call
money rates we're lower than they were
yesterday.
Bank renewals were made at 3 per cent
and the bulk Of the days loans on the
floor of the stock exchange were nego-
tiated below this figure. Time money
vas perhaps little more closely held
than il was yesterday
Sterling exchange continued TO fall
largely as a result, as was believed, Of
the investment i'm railway shoTt-time
notes here by foreign financial interests,
TO rumOTs that bids for the gold due 10
arrive in London next week from South
Africa would be made by our bankers.
No one in the foreign exchange market
to-day. however. appeared to believe that
any gold import movement from London
70 this side was near AT hand.
Strength developed in the outside mar
ket to-day in sympathy with that shown
on the stock exchange, and in Boston
there was a sharp advance in copper
mining stocks. arising from the recrudes-
Ceuce of rumors that schemes for the
combination of some of the large Lake
Superior copper mining companies were
still meditated.