Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1908-12-17
NEW YORK STOCK
AND BOND MARKET

NEW YORK, Dec. l6.-There consider
able repurchasing of stocks today, more gem
orally by those who had sold yesterday ana
the day before. recovery in prices was the
consequence. The market, however, continued
narrow and professional, much of the buying
being attributed to the covering of short con
tracts put out during the previous selling. me
upward movement was encouraged by some OF
the events of the day. The speculation is stu
restricted by the diminished resources OF the
money market, and the situation In that re-
spect remained the principal subject OF consld-
Grafton The position has not reached that Oh
stringency, such as forces out OF speculative
share holdings by ealing of loans, but valuable
resources are required for other purposes than
speculation to such an extent that limits the
operations to sustain an advance in prices on
a scale that has proved effective all through
the years rise
The level of interest rates, both call and
time has now reached a higher figure than
any time since last January, when conditions
assumed a normal aspect, and the premium on
currency first disappeared.
The present condition has come to prevent
sufficient tlghtness in the market to remove
the artificial stimulus to speculation which
grew out of the bulky accumulation of idle re-
serves in banks. Artificial prices, therefore,
become more hazardous The large demands
which confront the money market Tor other
purposes than stock market operations make it
likely that advancing interest rates will con-
tinue until the end of the year. This Is the
main factor in restricting activity In the stock
market. The local allotment Of the Brazilian
coffee loan largely subscribed that the
lists were closed as soon as opened. The inter
national exchanges were held away from the
point of profit on further shipments of gold to
Paris, and the maintenance of higher money
rates here seems sufficient to check this move
ment. 1t is believed that any severe rise In
money rates would bring financial bills into
the exchange market in the operation of Dor
rowing abroad. The official announcement of
tho placing of the years orders for steel rails
by the Pennsylvania railroad an important
event, owing to the long discussion that has
gore between the parties over the specih-
cations in the contract. The waiting Of this
settlement has been given as a motive for
holding up Of orders for materials all through
be released now. Special strength was shown
today by the electrical companies, and this
supposed to have some connection with
this expectation. The rumor was revived also
of the coming retirement of Reading second
preferred stock by exchange into common and
first preferred stock In equal proportions The
projected increase in the common dividend was
also limited at but the declaration of only the
regular dividend did not seem to weaken the
stock. The declaration of the regular divi-
dends the various Vanderbilt roads seemed
90 be of helpful effect on those stocks, al
though suggestion of other action has been
heard for a long time. An unusual feature of
the days dealings the almost complete
idleness of the trading in the intervals between
the spurts of active buying. These idle periods
allowed prices to sag back from neglect, so-the
days gains small outside OF exceptional
cases.
Bonds were steady. Total sales, par value,
S4,3f6,OOO. United States IS registered declined
a per cent on call.