The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1908-01-19
Easy Money Prevailed,
Although There Were
Many UnfaVorable
Influences.
Banks Discharging Their
Certificates at Rapid
Rate, and Cash Is
Plentiful.

NEW YORK Jan. lS.-The week just
closed has been attended by the best
trading and the sharpest recOveries that
Wall Street has known Tor many
months. It looked like old times TO no
tice tile speculative trading, coupled
with good investment buying and tho
development Of strong spots here and
there throughout the list, as the bull
leaders took stocks up and pushed them
for the effect on the rest of the list
There we're reactions. more nUmrous
and OF NOR Importance than any during
the last hye weeks, but just when they
seemed bound to carry the market down
for a severe break. the bulls would rally
IN list AMI the shorts would have to
pay the penalty.
1t did not seem natural that the adj
vances could be carried along SO stead
lily, in the face Of adverse conditions,
for, aside from easy money there was
nothing in the news of the week that
could be termed a bull influence. Allied
with easy money was the reduction
Of 1 per cent in the discount rate Of
the Bank of England.
UnfavorabIe influences were found in
the receivership for the Chicago Great
Western road, with attendant loss to
many English investors and consequent
liquidation OF their holdings in other
American stocks; the passing OF some
DIVIDENDS, the reduction in the dividend
Of the AmaIgamated Copper Company
from a Il d per cent basis, and the
poorest reports on railroad earnings that
have been received in some years.
Missouri Pacific made a bad showing,
and this was followed by even worse
from the Missouri, Kansas and Texas.
Another bearlsh influence WIS found
Ia the certainty Of the revival Of the
Investigation into the HaTriman-SOuth-
eTn Pacific matter. II is expected that
Mr.. Hartman may have TO answer
some more or less embarrassing qucs-
items having 10 do with hishuauCial
operations in that road.
Eut these adverse influences only
temporarily affected the list. After q
break that promised To meet the expec-
tations of thousands Of observers of
market conditions In their anticipation
of serious reaction, admittedly past
due, the situation would change in a
Jwinkling and with gradually increas-
ing strength the list would rise under
the leadership OF Reading or the Hill
shares or Union Pacific, and the &c
cIiues would be lost IT. a sharp and Wig
orCus rally
Another favorable influence, still along
the line Of easier money, was the fact
that the New York Central financed It's
note issue without a bit of disturbance,
through the mastery handling of this
problem by J. Pierpont Morgan.
The hanks are "a TfHfyr rrar-funr fnT
strong financial position, and dis
charging their certificates at a rapid
rate. All over the country the currency
situation is materially better, and cash
payments are being made as if there
never had been any disturbance.
The call money market today was
down to 2lz for the low and SO for the.
high. with 80 the final quotation.
One Of the favorite schemes Of the
bulls was 10 take first olfs stock and
then another, for the general effect on
the list. 1t was Reading most Of the
week, and in the final dealings ii was
Union Pacific that displayed the best
strength. Reading recovered its divi-
dend in short order, and the first day it
sold ex-dividend. The Street cannot get
over the idea that there is to be an
I
Pacific preferred That the directors
did not declare it on the occasion of
their regular meeting did not disappOint
the stockholders. as they expect a spe-
cial meeting to be held in the near fu-
ture, when they confidently look for the
action suggested.
The decline in Smelter has been quite
severe during the week, ana that the
market has ignored this break has been
q source of surprise 10 the traders, but
they have come TO realize that the bulls
are in the saddle and that they are
strong enough to advance prices or sell
the market down as shey will.
1t is admitted that the industrial sit
uation is not as good as it might be;
that the Presidential year may be at
tended with uneasiness and that rail
road earnings are sure TO show ma
terial decrease, but knowing all this
they ara still firm In the belief that
prices as they are and have been have
fully discounted all matters and that,
under good influences. such as renewed
buying by foreigners, continued easy
money and investment buying, stocks
should sell higher
The gains through the week have ag-
gregated ? to s points.
The closing was fair, although not at
the top, as it is but natural for an
evening Up Of accounts by the specuia-
tive traders on Saturday, Moreover,
profit taking is likely TO become more
and more q feature as the rise con-
ttnues