The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-01-26
STOCKS IN DECLINES
Little Trading Is Done, but
HeaYineSS Rules.
PESSIMISTIC FEELING GENERAL
Wall Street Does Not Take Kindly
To Secretary Shaw'S Order Calling
cifc Leads In SIump-Gains by the
New York Banks Disappointing.

New York Banks Disappointing.
New York, Jan. 25.-Throughout the
stock exchange session to-day prices dis
played weaker tendency, which led in
the late afternoon to "a general onslaught
on values by the professional element,
seemingly very similar to that made a
week ago this date. The net result was
declines in the active stocks. running
from 1 to points. The weakness of the
market was differentiated from that
which has recently been noticed by the
fact that the declines were brought about
upon comparatively light sales
The Volume Of purchases and sales was
much larger than il was yesterday or has,
indeed, averaged throughout the present
week. But the activity Of the market was
still decidedly less than it was during the
sharp fall in values last week. neither
was there any particular feature Of the
dealings that can be commented on.
The first stock to show distinct heavi-
ness was Canadian Pacific, in which there
was, apparently. a resumption Of what
spectators for the fall assert TO be a
rather long delayed liquidation. The hos
tile criticism Of Canadian Pacific stock
heard is that as a mere per cent diyi-
dend-paying security its price is high as
compared with that of other securities of
the same rank. On the other hand. there
is no doubt that the Canadian Pacific
Company is now earning at least per
cent above the dividend paid by it. while
a conservative estimate Of the lands
owned by the company is that they are
worth 100 per cent Of the par value Of the
company stock. From the point Of view
of an investor therefore, as distin-
guished from that of a Spectator, the
stock at its current price has strong
claims to consideration.
Not "A Sufficient Reason.
While this selling Of the Canadian Pa
cific shares in so narrow a market as the
present was no doubt an adverse infiu-
ence Of Importance. for sufficing explana-
lions for the cause OF The decline in stocks
to-day a species of hunting fer reasons
has to DC engaged in.
Pessimism ceutered in the first place
around the statement made yesterday
that the Secretary Of the Treasury pur-
posed TO withdraw from the banks in the
near future the 100000 special deposits
of public money that We're made there in
the closing months of last year. This is
a matter upon which there was much con-
fusion of thought in the financial district,
due presumably TO the fact that there has
been Of late no official declaration ema-
f1v-
ury as TO what his policy regarding the
deposits was to be.
So far it seems. Wall street has not
only had lack of information on the sub
ject. but mas been but poorly informed.
The banks now have d special govern
meut deposit fund of $50 100000 that was
left with them in the latter part of last
September, the Treasury stating al the
time of the deposit that the money was
likely 10 be withdrawn in February 1907
After this time an additional ST. OJ0, Og5
was deposited with the banks upon the
settled condition that il should be re-
turned in equal sums on January Is and
February !, and these dates were lately
changed 20 February ! and February u.
It is understood that what the Secretary
Of the Treasury has decided is that the
last 100000 thus deposited shall be re-
turned TO the Treasury at the time as now
fixed. but that in view of the heavy gen
eTal receipts of the government at the
present time no further return of govern
ment money will De asked for. This is a
very different disposition Of the matter
from what Wall street to-day understood
would be made.
Bank Statement Disappointing.
Again the trading element professed
disappointment over the small gains
made by the local banks from the sub
treasury during the week, these amount
ing. as was estimated, from S3.60OCC0 10
$500. coo, and it was prophesied that an
increase of loans shown in tomorrow $
bank return would wipe out whatever
benefit the banks had sustained from their
gains in cash
Call money rates were a little frmcr
to-day 5han they were yesterday, most
of the loans being made at 81 per cent.
as against yesterdays rate of 3-4 per
cent. There was no change in time
rates. bat borrowers in by far the greater
part refused to pay more than 3 per cent
for money for any period,
More or less was made of cabled rumors
from London that certain dealers IN Cd
tons there upon American securities had
had some difficulty in arranging their
accounts for the coming fortnightly set
Element Further, there was made public
during the afternoon report of the
Interstate Commerce Commissions in
vestigation last year Of the relations be
tween the railway lines and the coal
mining industry. The report contained
absolutely nothing that had not long be-
fore been a matter of general knowledge.
but II was seized upon, nevertheless, for
help in depressing the market
Fear Action of Minnesota.
More particularly. there was assigned
as a pTeteXt for the selling of stocks the
suit brought by the attorney general of
the State Of Minnesota to dissolve the
charter of the St Paul, Minneapolis and
Manitoba Railroad Company, the So
called parent of the Great Northern Rail-
way Company.
Information regarding the grounds If
the suit was somewhat vague as made
known during the business hours. but il
seemed 20 consist OF the general asser-
ton that in the turning over of the Mani
toba company 70 the Great Northern Com
pany an amount of stock was issued by
the latter company greater than the law
Of Minnesota allowed.
Interests connected with the Great
Northern Company here declared that
this proceeding, even if il We're successful.
could in no way initiate against the title
of the Great Northern COmDqnV ~ ita