Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-01-10
SLUMP AT WEEKEND
Break in Local fractions
Causes Many Declines.
SOME REC0vERIES LATER
Resistance to Fall by Many Stocks
Was Noteworthy.
UNUSUAL BANK STATEMENT
UNUSUAL BANK STATEMENT
Surplus Exceeded at This Time oil
the Year But Once Since 1900.
Trade Conditions Better.
Special Dispatch TO The Star.

NP''ldi blspatcN 10 Inc
NEW YORK, January "a violent
break In the Electromagnetic
issues in addition to the weakness shown
in these securities yesterday unsettled
the entire stock market and led. to a
considerable fall in the majority CT the
active stocks, although these made sub
stantfal recoyeries before the close OF
business.
The cause of the break in the traction
stocks was, so far as any was assigala BILE.
the effect made upon speculative senti-
ment by positive statements, even if only
in the way of rumor. yesterday that a
large assessment upon the stock of the
metropolitan Street Railway Company
would be necessary to place the COM
pany upon its feet, such stories receiving
however, certain amount OF confirma-
ton in the communication published yes
terday addressed to the receivers
OF the Metropolitan company TO the
public service commission in this dis
1rict in which the financial needs of the
company were detailed.
This incident constituted practically
the only factor of the day so far as the
speculative stock market was concerned.
ii must be said that the general fall in
prices which occurred appeared on it's
face to be in many respects in the nature
or drive. although there was also evil
dence of liquidation in various quarters.
Drop in fractions.
1t is probably the case that the drop
in the traction issues was as much due
10 selling for purely general reasons by
the large pool that has recently been
operating in these securities as to any
considerations emanating from the pros
moo of
an assessment has. indeed, been regarded
IN the financial district as an absolute
certainty ever since the establishment of
Il receivership for the METROPOLITAN COM
pany- As regards the market as whole
To-Day II can only be said that while the
fall in prices was broadly extended vet
me resistance presented to the decline
by many stocks was noteworthy
ESpeciai support was extended to the
ROCK Island common and preferred shares
ana 10 United States Steel common stock
ana 1t has seemed to be the case in the
last six weeks that the steel common
shares have acted best from specu-
aative point OF view whenever the general
market was depressed.
Similarly the Missouri. Kansas and
Texas shares and Kansas City Southern
shares were steadily bought in pursuan ce
or the same process of accumulation that
mas long been witnessed in these securi-
ties. and the same observation might he
Weekly Bank Statement.
The weekly bank statement exhibited.
a s it did last week. and unusual dscrep-
ancy between the details as furnished I'M
der the average and actual systems
of compilation. By the average system
the cash holdings were reported as in
creasing slightly over Sill ,OOO,O and the
surplus reserve as charging by but ST.
= ha
ing due to an increase in loans of nearly
s2s. 100000 and in deposits OF s31 400, 900.
An entirely different state OF affairs was
shown by the actual figures, that is to
position of the banks at the close of bust
ness yesterday, these exhibiting an in
crease IN cash in over $40. 100000 and an
increase in loans of but 14.1J0.OOO. which
was Jointly productive of an increase in
reserves of S11,JOO.OOO.
But the statements furnished by the
trust companies made it clear that one
force that had been operating during the
week had been re-tranSfer of loans from
tho banks to the trust organizations. this
rejecting. presumably, the usual effect of
a decline in money rates AS il is the
bank surplus, even IL calculated upon the
least favorable basis. stands at a figure
that has only been exceeded at this time
OF the year but once since 1900.
Speculative Attention Divided.
Attention in Wall street, at least of Il
speculative sort, has been divided since
Monday between such unfavorable devel-
opments as the decline in Consolidated
Gas. New York Central and the INTERIOR
ough- metropolitan stocks, and the renew
ed Indications of extreme monetary ease
which are facilitating in most expeditions
manner the sale of new and refunding Sc
curities by the railway and industrial
companies. Just as the week ends il WAS
Obvious that the last offer OF this kind
that of the Denver and Rio Grandc first
and refundnS Js, would be heavily over
subscribed.
| Trade conditions in the week have been
Helped by the colder weather, and the time
cannot be far distant when the city will
notice the usual winter influx of whole
sale buyers and their purchases of dry
goods and other similar commodities for
the spring trade.
II is doubtful if there has been any
stock market effect whatever produced by
the friction at Washington between the
President and the houses OF Congress,
which has been one OF the striking events
of the last six business days. But in so
far as this occurrence expressed the in
dignation at last of a patient Congress
over the lawless policies OF Mr.. Roose-
Welt and the intention of the nations rep
resentativeS 10 set bounds to presiden-
fial authority especially over private bust