Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-10-18
PRICES TAKE A DROP
Yield to Heavy Selling on
Change Today.
RALLIES FAIL TO HOLD
Opening Was Strong With Further
Advances.
RAILWAYS LEAD IN REACTION
Local Money Conditions Distinctly
Easier-Call Money Fractionally
Lower Than Last Week.
RAILWAYS LEAD IN REACTION
Special Dispatch to The Star.

NEW YORK. October 1s.-Stocks
seemed by their course today to indi-
cate that there might have been some
distribution last week on the strength
Of the short coverings and such new buy
ing as was encouraged by the apparent
assurance of the money market that
stringent conditions were not to be ap-
pretended. The retirement Of the short
interest. which no doubt took place on
an extensive scale toward the end OF the
week also deprived the market OF an
element of technical strength.
In addition there was rather heavy
selling around the room today, as might
perhaps have been expected. On the
trading theory sales were in order. be-
cause OF the rather large amount OF
good news or favorable facts developed
in the last few days.
According to this theory, the sharp
upturn in stocks, the slight relaxation or
the money market, the good bank exhibit
Of Saturday and the Missouri, Kansas
and Texas purchase announced last week
should have made the market strong
enough to endure distribution snd profit
taking
At all events, there was enough selling
to depress prices in the greater part of
today's session, but not enough buying
to make the rallies hold. Traders gener-
ely were disposed to take the selling
side from the start. and their operations
accelerated the reactionary tendencies
Absorbed Sales First Hour.
The opening was quite strong and mod
erately active. and for the first hour the
market absorbed sales well that fur
ther advances were generally scored with
no conspicuous heaviness anywhere in
New York Central. Chicago and Alton.
Missouri. Kansas and Texas. Denver and
Rio Grande. the Wabash issues. Union
Pacific, American Cotton Oil. American
Smelling, Amalgamated Copper and
United States Steel were strong and ac-
tive features. while numerous sharp adj
vances were scored by industrial special
ties on small transactions, notably In the
cases OF Distillers' Securities. United
States Rubber and Pressed Steel Car.
Eventually. however. the market dis
closed weakened position and prices fell
steadily away until about the middle of
the noon hour under the influence Of
Union Pacific. Reading. Southern Pacific
United States Steel, st. Paul. New York
Central and Rock Island. which were
leaders in the reaction. The average de-
cline was about IL points from the open
ing level.
In the early part Of the afternoon prices
hardened somewhat. The Hawley stocks.
the Gould stocks and the local fractions
offered the best resistance to pressure.
The early industrial leaders lost practi-
cally all Of their forenoon gains.
Rumored Copper Merger.
While the reaction was in progress very
little was heard about the developments,
combinations and mergers which were
much discussed before and shortly after
the opening. The rumored Amalgamated
Copper-American Smelling deal was for
gotten. as was also the alleged purpose
of Mr.. Hawley to take hand in the
local traction situation. The way in
which the higher priced railroad stocks
seemed to be sold under cover Of the
roads and the industrial issues also
chilled enthusiasm for the prospects of
new financing with rights to stockholders.
me faet seems to be that the specu-
iative community has rather lost its bear
ln8s lately and is too much disposed to
vary It's mood. not from day to day or
from hour to hour even, but from one
minute to the next
Barring returns of railroad earnings.
such as the annual report of the Kansas
city Southern. showing an increase of
S263. 600 in the balance available for diyi-
oends, although gross earnings increased
only S1i.OOO, and the report of the
wabash showing gain of $4,000 in
bulk Of the days real news bore on
money
From the indications abroad 1t was an
parent that the Bank Of England had
been making its per cent discount rate
eHective. | Open market discounts adj
Eanced very close to the minimum bank
rate anJ the bank took all the South
African gold In the market. As the in
tention to recoupe its gold supply was
the OBVIOUS purpose OF the last advance
In the discount rate, the news in this
respect must be regarded as satisfactory
Time Loan Market Inactive.
Local money conditions were distinctly
easier. Call money ruled fractionally
lower than last week. but more offerings
we're made at AZ per cent and at an
earlier hour than was the case toward
the end of the week. The market for
time loans was rather inactive and ind-
Gated that commission houses had prob
ably been fairly well supplied during the
late furry. although the call money mar
ket could not be said to show that they
are loaned up.
Foreign exchange showed further
strength. Demand sterling advanced
almost l. cent I'm the early dealings, al
though around midday the exchange mar
ket became somewhat easier. The ad-
vance on top of last weeks rise betokens
an interesting situation in the information