The Washington herald., 1907-01-10
STOCKS NOT ELASTIC
Market Transactions Per-
functOry Affairs.
STERLING EXCHANGE DOWN
Bears Attack Southern Railway
stock, Which Quickly Receivers.
Traders Pleased with Adjustment
of stock Transfer Tax T.aw-Specu-
IatiOn rs TO RefundinE of Money, 2

New York, jan 9-To-day's stock mar
ket was no more than a peTfunctory af-
fair. The quantity Of purchases and
sales was heavily reduced from yester-
day. and fluctuations in prices. save in
small number OF stocks, were quite in
consequential In "a general way The
stock market exhibited a stronger under
tone than it did yesterday. and was char
acteTized by d recovering movement after
yesterdays decline. Yet after this advance
had gone a little distance, il halted, and
the market moved thereafter aimIessly
back and forth within a narrow limit.
Call money rates did not touch the
high point they did at the preceding
stock exchange session, but their average
range was higher, bank renewals being
commonly made at per cent against
yesterdays rate OF 6l-2 per cent. and
l-2 per cent rate on the day before
that The highest price paid to-day for
call money was 8 per cent. Funds were
offered in the later afternoon at much
lower figures, but only when the days
borrowing necessities had been fully met.
There was no change in time money
rates. and there was d continuing dispo-
siuon to look at this branch of the money
situation in a somewhat less optimistic
way than prevailed last week.
Time Loans at q Per Cent.
Money can still be had for all of the
long periods at 8 per cent, upon what
Wall street calls ordinary mixed" col
lateral-that is TO say, upon securities
composed in a major degree Of railroad
stocks and 70 a minor extent of indus
trial shares. Where these proportions
are reversed. however, higher rates for
time loans are asked; and tho feeling at
the moment seems TO be that no material
reduction in the cost of financial accom-
modation is likely To happen for a con-
siderable time. Naturally enough. a deep
impression has been made in the fnan-
cial district by the sale recently of the
short time notes Of high financial stand
ing on per cent basis.
There were few, il any, developments
to-day influencing the stock market in
any degree worthy of mention Rather
heavy Withdrawals OF gold were made
from the Bank Of England for shipment
to South America. and. together with the
certainty that a similar outgo of funds
from London would take place later in
the week. these were regarded as provid-
ing against any reduction in the Bank
Of England's discount rate this week. Be
cause of this, but TO n greater extent, per-
haps, because Of the approaching fort
nightly settlement in London, there was
a little less frmness to-day i'm the Lon
don stock market and little more firm
ness there in the rates asked by private
lenders for the use of money. There
Was also some anxiety lest because Of the
relative weakening Of its position caused
by the sums Of money sent from the Bank
Of France to London in the last few
weeks 10 aid the money market there
there might be an advance tomorrow
in the official discount rate in Paris
Sterling Exchange Is Down.
matter of some interest was. Of
course. to-day further fall in the price
Of STERLING exchange. which once more
brought sterling 10 point where, at
least. if Treasury assistance was afforded.
gold might be engaged in London for
shipment to this side The chief i'm
poTtance attaching 90 this matter, al
though il appeared 10 be little thought
OF on the floor of the stock exchange. is.
Of course, that a very acute question in
English financial circles just now IS
whether sterling exchange is or is not
to continue in favor of London.
As long as the movement of exchange
indicates that there is no danger OF pos
sibility of Il withdrawal Of gold from
London for American account no one
could look for any reduction i'm the Bank
Of Engiand's discount rate or for any
relaxation in that monetary strain in
England whose reflex action is felt I'M
Wall street Usually an advance here
in the price Of sterling Is considered an
event unfavorable to the local stock mar
ket at present. 4 movement Of this
kind, so long as il is not pushed to the
point of prospective loss of gold by ex-
port. would be favorable rather than
otherwise, because of the indubitably
soothing effect it would have in London.
As mucn of a feature of the stock mar
ket to-day as anything was the sharp
pressure brought to bear in the earlier
part Of the day against the Southern
Railway common and preferred shares:
but dealings in The preferred stock were
small, and the common stock quickly re-
gained all Of its loss.
Tax AbOIishment PIeasex.
1t is needless to say that everybody in
Wall street rejoiced at the news. which
was not made public until after the close
of business yesterday, that the highest
judicial tribunal in the State had held TO
be unconstitutional that portion Of the
stock transfer imposing a tax Of s. upon
the transfer Of every hundred shares Of
stock regardless Of the par value of the
stock. Theoretically this decision should
take away a restraint upon speculation
in certain active securities dealt in on the
stock exchange where par is less than
500, such principally as the Pennsylvania,
Anaconda. and Reading stocks: while the
decision is, Of course, Of peculiar benefit
TO the curb market
1t is estimated that more than 81, ,Ql0. coo
has been thus wrongfully taken BIZ the
State through the operation Of this unjust
and confiscatory law; and matter of
some Importance seems to be the quick
ness with which this money will be re-
funded by the State treasury TO its right
ful owners The feeling is very strong in
the financial district that in simple JUS
tice the State authorities themselves
ought to move quickly in the matter. and
that the refunding ought to go on with
out the necessity of effort on the part Of
those 20 whom the money Is due
NEW YORK MONEY