Los Angeles herald., 1908-01-11
NEW YORK STOCK
AND BOND MARKET
BY Associated Press.

| NEW YORK, Jan. 10.-After opening with
| buoyant upshoot Of prices which gave a ma
! terial extension to the rice OF yesterday, ana
| then maintaining appearance of great activity
for a time It began to be manifest that the
professional operators in the stock market had
been busy taking their profits in the hurly-
| nurly Of the days transactions.
The market showed the effect Of this change
In technical conditions after that. The reduc-
tion of the short interest which has been
driven to cover by the extent OF the advance
suffered demand from one source. The early
market showed some expansion of commission
house demand, also attracted by the appear
suce Of revvng interest and strong recovery
in the mraket
This demand facilitated the taking of profits
by the professional party, which has conducted
the speculation up 10 this point, The latter
market became dull and hesitatng IN turn IN
consequence Of these Developments There was
little in the newa of the day to indicate the
marked change in recent conditions. The usual
forecast Of the weekly currency movement
agreed in representing a very large cash gain
She estimates differing to some extent on the
cmount of cash from local sources which has
come into sight during the week.
This refiux, It is said. is considerable ana
represents the coming out OF boarded money
held in the hope of profit from the currency
premium from motives Of distrusL Inc IN
tux Of cash from the interior has been larger
tnan last week, the balance in favor OF New
York on the export movement being estimated
at approximately SS000,000. The arrivals OF the
last gold gagements have ueen sufhcient TO
CVerbalance a small absorption on sup-LeahuT9
operations. The stock market rallied brtslly
from a sharp reaction when these figures ap-
leared.
heavy cash gain this week has been taken
for granted, however throughout the week fol-
lowing the evidence In last weeks bank state
ment of decisive turn in the movement. The
speculation In stocks during the week has been
based largely on assumption that the deficit in
The legal reserves OF the New York banksJ
would be practically wiped out this week Last
Saturday the deficit still stood at sl 1850, so
that it will be perceived that its obiiteratlon
seems to depend on a sub-loan reduction inc
revival in speculative activity during the week
must have some effect on the loan item and
there have been some large purchases enected
Of commercial paper which also would nSure III
that item.
with the decline In the interest rate to the
neighborhood OF per cent, which was the rate
paid by the banks on their clearing house Ger"
tifcates, the effect would be Iost Immediately
The factors in shaping the bank statement
therefore. are considerably maintained, dis
counts continue TO fall in the foreign money
centers and tho Australia Imperial panK
marked down its official rate. An item Of the
DAYS news was the statement of the gold pro
duction at the Rand in December. which rose
TO So 526 ounces, a record output for any month.
With the reaction In the stock market caused
by the speculative profit taking there came
into consideration again some OF the topics
which were driven into the background. FIN
ancial news of some railroad systems OF whicn
the credit is not high gave rise to renewed
nisgivings the pressure on Southern Railway
securities being especially conspicuous
Rapid inflow Of cash to bank reserves Is ex-
pected to be taken advantage Of to replenish
the United States treasury's working balance
by some further Withdrawals of government
deposits with the banks Another requirement.
for additional cash ia suggested by the move
ment Of tie trust companies towards member
ship In the New York clearing house, which
will involve verS material increase In cash
holdings by those institutions. Tho market S
weak closing was under the influence of the
slunuo In southern Railway stocks and bonds.
with it's strong suggestion OF serious financial
embarrassment for the company.
Bonds were irregular. Total sales par value,
IS, ,s52, 900. Unitec States As coupon, declined
II per cent on call.