Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-01-17
RECOUP At THE CLOSE
Sharp Recovery Steadies the
Weekend Prices.
lNDUSTRIALS ARE ACTIVE
Contribute to the Rise in the Gen.
eral List.
C.. & o. NEW HIGH RECORD
lNDUSTRIALs ARE ACTIVE
C. & o. NEW HIGH RECORD
Bank Statement Shows Substantial
Increase in Surplus Reserve.
Traction Stocks Still Strong.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, January 16-A sharp re-
covery occurred in the market today,
more pronounced i'm certain stocks enjoy
ing comparatively narrow market, like
those OF American cotton oil and the
fertilizer companies, than issues most &C
lively dealt In, and it was altogether I'M
certain at the end whether the rise In
the general list resulted from anything
more substantial than a movement to
cover shorts, such as might be expected
to occur at the close of a week in which
those operating for decline made re-
peated assaults on values without achiev-
ing pronounced success.
The strength in the stocks of the fer
tilizer companies American Agricultural
Chemical and Virginia-Carolina Chemical,
was attributed to the progress of plans
of these and various other concerns in
the fertilizer cotton oil industries, and
while it was said that the American Cot
ton Oil Company would not be included
i'm the consolidation, the stock of this
company was the strongest of all, be-
cause of the expectation that the merg-
ing of independent concerns into the new
combination would eliminate some of the
worst forms of competition from the oil
making industry.
Chesapeake and Ohio made a new high
record on rumors of an increase In It's
dividend, and the traction stocks were
strong on the progress of plans to re-
habilitate the local surface street rail-
way system.
The bank statement. notwithstanding a
large increase in loans and deposits
caused chiefly by a transfer of loans
from the trust companies to the banks,
showed a substantial increase in surplus
reserve, an unexpectedly large gain In
f(r riTC "a
week. The preparation for the Russian
loan caused further fall in French ex-
change on London.
Hesitancy on Change.
While it could be said, just as it could
last Saturday in reviewing financial and
commercial conditions of the week, that
colder weather had stimulated business,
and that at least no noticeable change
for the worse had occurred in these af-
fairs it is nevertheless, undeniable that
one cause for the hesitation and uncer-
tainty displayed by the stock market in
the greater part of the present week
impression in Wall street that business
over the country as whole Is not as
active as it was sixty days ago.
1t must be observed that basis for what
may be called a relative pessimism or
this kind is not afforded in the reports of
bank clearings nor indeed in any definite
quarter in which Information which may
be adduced; and the feeling referred to
probably consists mostly of disappoint-
ment over the fact that certain extremely
rosy companies-such as the Wisconsin
Central. Toledo, st. Louis and Western,
National Biscuit and the different fertii-
iZer cOncernS-were also interesting mat
ters of attention.
At the close of the week the undertone
of the stock market was unqueStlonably
firmer than it was the week before.
oi.lyi nf HIS
were commonly INDUCED in Immediately
after the happy result of the presidential
election, have not thus far been full
filled.
Railways Slow in Placing Orders.
The railroads, obviously. have been
slower in placing their orders for new
rails. cars and the like than 1t was ex-
pected they would be. The tendency still Is
in all large business enterprises TO make
haste slowly and to practice economy.
and the net result of it is now very evil
dent that while confidence as to the bust
ness future is still undimmed. emphasis
is perhaps laid more strongly upon the
fact that the improvement in business
would be slow.
Dull as the week has been as regards
the activity of the market or changes of
consequence in the leading stocks it has
yet been d week of various important
developments. The Bank of England
rate was advanced on Thursday from 2H
to 3 per cent, although the strong desire
undoubtedly was on the part of the di-
rectors OF the company to postpone such
action If possible until the conclusion in
Paris of the new Russian loan now
only ten days off. But the financial con-
dition of the bank became so low and the
urgency of Paris to obtain money for the
Russian operation was intense that
the hand of the authorities of the bank
was forced. Just why such extraordi-
nary preparations should have been made
by the Paris bankers against this event
seems very mysterious.
French Accumulation Of Gold.
The Bank of France has for a long
time had in its possession an amount of
gold for which it has had practically no
use which could easily have been devoted
to the whole Russian loan If necessity
had required, and, moreover, the money
subscribed for the loan will be immedi-
ateiy replaced in circulation in Paris. 1t
Is sincerely TO be hoped that when the
loan is over the Bank of France will dis
continue what seems among all the other
large financial centers of the world a
policy OF needless accumulation.
Talk pro and con about the possibilities
of the declaration of an initial dividend,
presumably at the rate of 4 per cent for
the Brooklyn Rapid Transit Company, of
objections said to have been raised by
the public service commission of the sec
ond district to the Erie railroads appli-
cation for a $4,000 900 bond ISSUE the
seeming removal of one difficulty at least
which has figured in the international
financial situation through the accept
ance by the Turkish government of the
DTOnOSltlpn N mr. nj fx