The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1908-01-12

status was not such as to give conn
dence to that conservative element that
insisted on waiting for the restoration
OF normal conditions before starting the
movement in the direction of higher
figures.
The bulls themselves were far from
certain OF their positions. and while they
were frequently buyers Of securities,
they took their profits on small gains
and were ready 10 get in again on small
breaks.
BOOms Blocked.
The theory that it would take weeks
and months to recover from the panic
was too we'll grounded TO permit Of
immediate looms. The speculative ele-
ment were ready on the slightest signs
Of weakness to attack the market here
and there, and they generally found it
yielding for a small reaction on every
show of strength.
Admittedly the news and general in
huences of the gossip and business con-
ditons up to January and for several
days was unfavorable in tone. Com
mercial failures and Industrial shut
downs, with decreased railroad earnings.
were not calculated to inspire conf
dence.
The passing OF the dividends on many
stocks. the cutting Of the distribution
on others, and the closing Of mills,
coupled with the decreased earnings Of
railroads, all seemed to favor the bears.
Changed Conditions.
With the closing days Of last week
conditions seemed TO improve. So great
he har
took on new zest and stamina and be-
gan - overlook little disappOintments.
a little disturbance resulted from the
Atcbison earnings, which were admit
tedly bad; from decreased Missouri Pa
cific and New York Central earnings,
from the financing Of loans and financial
movements. and from the transfer OF
The Seaboard Air Line 10 a receiver
ship, and then the application resulting
ir the placing OF the Chicago Great
Western in the care Of receivers.
In ordinary seasons these things
would have started the heaviest kind
OF liquidation, but these are not ordi-
nary CODditions-they are extraordinary.
The market has discounted the worst
that can happen and the traders feel
as If. while they may have to stop and
watch the market go back a fraction,
there is nothing at all likely 10 happen
that will cause anything Ike a re-
newal OF the depression OF October and
November.
Money Makes Market Go.
After all the Improvement has been a
case Of money-Of the fast returning
dollars from the West and the South.
returning to their regular channels Of
trade; :he great United States return
ing the money of the realm to the chief
financial city of the Union-New York
the chief city coming again into her.
own.
So rapid has been this flow that the
banks Of the city have overcome the
panicky effects and arc once more sail
ing along smoothly, with boarded funds
finding their way back into banks. with
doubt and fear giving place 20 conf
Cence and reinsurance, and deficit to
surplus.
The fact that the stock market finally
reached 4 day or two in succession
without recession from the high points.
and that money was pouring into the
financial center so rapidly, removed the
last straw OF prejudice in the path of
investors, and they rushed Enso the mar
ket. buying stocks right - '~ft-stocks
that have been taken out "a ne market
for good and that viii not be sold for
many weeks.
Shorts Sacrificed.
Shorts, used as they have been to huc-
tuations, TO advances and declines. to
strength and weakness, were Iulled to
safety thereby, and used their usual
methods of taking stories and attacking
stocks here and there, the latest having
10 do with. the. position OF the Atlantic
Coast Line. But all their rumors and
maneuverings were futile, and they
found the market getting away from
them with such speed tnat they gave
UP the fight and rushed in TO cover, tax
ing their losses and. many OF them at
least. turning to the bull SIDE of the
market.
Their losses in their beIated rush to
cover must have cost many of them a
large part of the accumulated profits on
the down turn of the market They
seemed so sure of their position. so
sure that they would be able 10 cover
day by. day, as they have been doing
either with a profit, or at best with
slight losses. that the blow fell very
heavy
Rapid Recovery.
In November the deficit of the asso-
ciated banks OF New York city had
reached the enormous figure Of SIS, Co.,
600. Last year at this time the surplus
reserve Of these same banks was but
SS.040,00o. No one expected any such
statement as that presented to the
clearing house today Money has IN
questiOnably been flowing in when the
deficit has been entirely wiped out and
there is a surplus OF S6.0S4. ESQ in the
banks today.
Bankers believe that there will be a
dual betterment in conditions right
Jng. and that the beginning Of the
equipment may fairly be said to have
started.
At the same time they do not nesi- |