The Washington herald., 1907-10-22
WALL STREET NOTES
Stocks Score Substantial Ad-
vance Over Saturday.
REVERSAL CAME UNEXPECTED
Busy Sunday Among Brokers Re-
stores Complete Confidence in FL
ing Exceptionally StrOng-Rates on
Call Money Advance, Time Scare.

New York Oct. A.-Seldom has the
market presented such a complete re-
versal of form as il did at the opening
to-day. Almost every stock scored at
the opening a substantial advance over
Saturdays close. and continued to ad-
vance with little interruption during the
day, Notwithstanding that in the after
noon the unusual opportunities for quick
profits afforded TO the trading element
brought a large number of realizing sales.
The shorts We're completely taken off
their feet. but far more significant than
their buying was the purchase Of stock
by large local interests and for foreign
account, which made clear that, in the
opinion of well-informed inanciers both
here and abroad the steps taken by the
clearing house to restore confidence In the
banking situation had proved wholly eff
cacious.
October 20 was Wall streets busy Sun
day. When bankers get busy on Sunday
there is generally something doing, and
that this was true Of the most recent oc-
casion was shown by the announcement
which the clearing house was able 10
make, and, in speculative circles, it was
argued that this announcement did not
/ tell all
] The traders believed that measures had
been taken for the support Of the market,
/ and that the significant buying seen in
the leading stocks was the outcome. Their
theory on this point was that as bankers
had been drawing together for the discus
sion Of the affairs Of the banks that
needed assistance they probably I'm
proved the opportunity by arranging a
plan of organized support for the stock
market as a further measure for the
/ restoration of confidence.
/ It was only a theory. and in influential
/ banking circles it was declared 70 be a
mistaken one. but the traders faith In
/ IL could not be shaken, and they shaped
their mode Of action In the market in
/ accordance with it.
/ One important stock. New York Cen
tral, failed wholly to keep pace with the
/ improvement in the general market
What cause there was for this disap-
pointing action Of Central nobody seemed
to know. although all were willing "a
guess
! As might be expected under the circum-
stances, many theories. some Of then
! plausible was to the effect that IN,
bears were concentrating their efforts on
/ this stock in an effort to check the ad.
vance in the general market. and another
/ that a loan in which the stock figured as
/ collateral had been called and that this
involved forced liquidation The first OF
/ them clearly originated with the bulls
/ the second as clearly had its origin in
bear quarters.
/ Whatever the truth in the case, II was
/ remarkable that a stock which had beer
/ conspicuously strong last week should
! be conspicuously weak when the rest OF
the market was moving upward. impeuec
/ by a seemingly irresistible force.
American Smelling and Refining distin
guished itself by display Of aggressiv,
strength far beyond any other stock IL
the market, strong at almost every point
This action Of Smelling more than justl
fed the impression drawn from the sue
cess with which it had on Saturday re
short interest was overextended. ant
that on account Of its technical posi-
/ tiOn. If for no other reason, the stocE
| was likely to be a leader in the genera
recovery As for the value of the stock
there appears TO be nowhere any doubt
that il is well above the present price.
A not unnatural result Of the recent un
certaintie5 in the banking situation wa,
/ an advance in the rates for cali money
/ which at one time rose to 3 II per cent
] while time funds were in scant supply
with the rates firmer than last week
The traders sought to effect this advers,
factor by circulating a report that the
/ Secretary Of She Treasury would max,
deposits with the local banks 10 an ex
tent corresponding 10 the measure Of re-
| lief which these institutions were extend
/ ing TO others through the clearing house
There was no confirmation of this story
but a hardly less interesting one. tha
/ the gold engaged or Saturday for ex
port to Germany would be the only con
| signment sent in the near future, was
I 81, aI IL.