The Washington herald., 1908-01-28
STOCKS ARE ERRATIC
Market Fluctuations Due to
Professional Trading.
NET GAIN AT END OF DAY
Early Weakness Lasts Only short
Time and IA Followed by Four
Hours of steady pid
Decline in Closing Hour of Bust
ness-UniOn Pacific RumOrs.

New York, Jan. although the course
OF prices in the stock market to-day was
, different from that which prevailed
throughout last week. yet the results of
the days business were such as TO afford
evidence no less convincing than that
which was given in the six preceding
business days that purely professional
operations constitute almost the sole inn
portant influence Of the moment upon
daily fluctuations in security prices.
There was some little scattered selling
OF stocks Immediately after the opening
Of business, caused presumably by the
announcement over Sunday Of the suspen-
sion OF the Bank of North America, and
by the expressed intention Of the govern
ment TO proceed against the Union Pacific
Railroad Company in a more elaborate
way than had hitherto been outlined for
alleged violations of the antitrust law
The weakness of the market lasted only
short time and was hardly deserving
or the name Fer four hours thereafter
prices advanced the vigor Of the move
ment being greatest in its early period
Rapid Decline in Last Hour.
Then, in the last hour Of the stock
exchange sessions, the market again de-
clined with even greater rapldlty than
1t advanced, wiping out the large. por-
tion Of the days gains. but stin
leaving most OF the principal stocks at
higher prices than they closed on satur-
day.
All this, OF course, plainly expressed
the work Of professional market oper-
ators These operators commonly and
freely sold stocks last week. and rushed
TO cover to-day. as they not infre-
quently do. all at one time. taking ad-
vantage, in accordance with invariable
cases, Of the announcement Of the un-
favorable news
When the buying back OF stocks sold
for the decline was wholly or in great
majority stopped. the market was left
without support, and succumbed to
proht-taking and a resumption OF spec
ulative selling
The best feature Of the days busi-
ness was the bond market in which
F, steady strength was perceptible
other Bank Failures Anticipated.
There were many people in the fnan-
cial district to-day who declared the
closing Of the doors OF the Bank Of
Mouth America was. from one point Of
view. not unfayOrable. 1nasmuch as the
ent was one that has long been con.
sidered in banking circles as inevi-
table, SO that it was greeted, when II did
come. with a sense of relief.
Occurrences Of this sort must obviously
be expected for some time 10 come An
era OF cheap money does not mean that
an individual or a corporation which
does not possess adequate funds. even in
slow collateral that he can offer as Sc
curity for his borrowings can hone In oh
tain an extension of credit Now. when
money has become so plentiful that anv
one having proper security can obtain
all the funds he wishes at merely nouni-
nal rates, it is clearly time for the re-
payment and final settling Of obligations
or else for transfer of these TO the
profit and loss account
Union Pacific Rumors.
The weakness of the market this aft
ernoon was assisted by a rumor that the
Union Pacific Railroad Company is about
10 issue in the neighb0rhOod OF 49,. 600 900
new securities The rumor might have
been Incorrect in that no such issue was
Immediately forthcoming, but il is be-
lieved in high banking quarters that am
appeal 20 the money market Of this
character viii be made at no very distant
date. Foreign exchange was strong 10.
day the sterling market still working
steadily If slowly i'm the direction Of gold
exports, while time money was a little