The Washington herald., 1907-12-23

h"NhNANCA- hoNSReEg Dut blight
Predictions Are Made for the Near
Future-SOuthern Centers Are still
HOarding-City Bonds Sold.
New York, Dec. 22.-Dealings in stocks
last week were so utterly professional
! that the security market as such was
well nigh devoid Of significance. II the
| operations Of one or two speculative
cliques or even one or two spectators
had been eliminated, ,the market would
have been as dull and featureIess as any
that has been witnessed for years.
Indeed. it may almost be said that even
a narrower reference might be made 10
those whose activities were responsible
for such fluctuations in values as oc-
CURED. Il IS fairly well understood that
one speculator who has come into prOmI-
nence only during the present year IS
DOW trading daily in from $500 70 5000
shares Of stock for the purpose. apparent
/ y, Of catching" small changes in prices.
He has. II is said been "bullish" and
''bearish" by FITS and starts for three
weeks past. and there is little doubt THAI
his whins have really had much to do
with the movement Of the market in this
/ period There have not been the slightest
indications recently that substantial
/ financial interests were taking any part
/ in the course Of the market at all
Genuine liquidation Of stocks has un-
I questionably been OF a mere dribbling
character, and the general feeling has
/ been that While the question OF an in
creasing contraction has still to be faced
I the financial situation proper Is improv-
I ing constantly, though rather more slowly
/ than had been anticipated. The trust
I companies that have been in trouble
! hereabOuts continue 10 make very fair
! progress in paying of the loans Of money
I By which they were helped during recent
/ difficulties
Western Banks Buying.
/ Il is said that Western banks are buy
ers Of paper on a Ittle. more active scale
and that there are some slight evidences
OF return Of Western money here for
use in making Stock Exchange loans
I But, on the other hand. the premium on
/ currency held with little abatement last
week. even becoming higher at one time.
and the banks continued 20 lose money
/ on net balance IN their transactions with
the interior OF the country.
The clearinghouse certificates issued
locally have been partially retired owing
! in some degree at least TO the sale TO
individual investors OF a portion Of the
city revenue bonds which were covered
originally by SO coo Of these clearing
house obligations. The general bond
market. too has been relatively stronger
than the stock market. and a steady il
slow process OF investment is plainly
visible there
Contrarivise. again, call money is stiu
stifhy held and time money for any Pc
Rod is unObtainable except upon what are
ordinarily considered as prohibitive terms,
and al these circumstances taken to-
gether make It seem perhaps a little more
dubious than IL did few weeks before
as TO the likelihood Of pronounced ease in
money shortly after the beginning Of the
new year.
Money situation Improves.
Banking interests in the main stili say
they think that by the time stated the
money situation viii be more comfortable
than it now is; but they are beginning 10
qualify these by statements that they are
disappointed over the tardiness with
which money is returning here from
Western and Southern centers and in
general over the continuance Of the
Western boarding tendency.
The point has been raised whether the
firm grip that Western institutions are
maintaining now on their funds may not
be related IN some way TO the business
breadth OF the country.
Western banks. II Is declared. have their
loans as q rule IN such shape that they
cannot be easily iqUidated; that IS TO
say, that they represent extensions Of
credit upon real estate and other forms
OF value that cannot quickly be converted
into cash: and obviously institutions
whose loans have been so made THAI they
cannot rapidly be called and paid Of
have motive for intrenching themselves
with supplies Of actual cash that is not
Ieit by others more fortunately placed
Return Is Delayed.
As, moreover, Western institutions. or
at least those in smaller towns. can have
no recourse to clearinghouse certificates
or such other expedients in time of
trouble as could be utilized in large cities,
another reason exists why they maintain
high reserves. More or less heed there
fore IS being paid to the suggestion that
under all these circumstances the return
Of the vast sums Of money sent from the
Eastern seabOard 10 the West within the
last two months may be somewhat de-
layed
A great share Of this money, however,
was sent West not because Of any finan-
cial exigency, but for the ordinary pur-
poses Of the yearly crop moving. and
there seems no reason why these funds
should not be returned at the usual
time to their accustomed channels, and
il does not seem possible as if the month
r Of January could pass without some de-
cided lowering OF money rates
A factor helping 70 bring this end
about should be, moreover, the release OF
money all over the country arising from
the slackening OF business, and at the
close Of the week reports in Wall street
: as TO the contraction in business were
much more definite than they have been
; at any previous time. Bank cleaTings
b from one end of the land 10 the other are
running now about one-third less than
they were year ago with a tendency
for the reduction TO increase
Much Greater Freedom.
This tells the story in a word, and II
arranges, too, ike a mathematical propo-
, sition, the question that must be settled
: concerning the future Of the stock mar
ket IL the few months Immediately ahead.
II may be assumed that money in this
period can be obtained with much greater
freedom than during the five or six
months before that time