The San Francisco call., 1909-12-04
BETTER TONE IN
STOCK MARKET

NV 1Ohh, Dec. o,-friceS OF stochS
turned upward today without any well de-
fined explanation for the reversal of yes
terday's course. The influences in the mar
ket were for the most part denials of as
sertions current which caused prices to de-
cline yesterday or renewed assertions of
changes in the course of events which had
depressed the market.
Reports were circulated that the switch
mems strike in the northwest was not
destined 10 a long continuance. Late in
the day came report from Chicago that it
had been settled. The hopeful feeling on
this matter relieved the market from con-
siderable pressure.
The break in relations in this labor dis
pute has involved a good deal of uneasy
feeling in financial circles. The necessity
for wage adjustments on comprehensive
scale has been admitted for some time, but
there was apparent confidence that negotia-
tions would bring peaceful settlement.
There have heen reports circulated at va
nous times of a general movement on the
part of eastern railroads to advance wages
as a concession to possible demands. Since
the switohmen went out in the northwest
the fear has grown that the strike would
spread and overturn the arrangements for
smoothing over the troubles.
There was a change of feeling on the
forthcoming message of the president to
congress. II was said that reports from
Washington of radical recommendations to
be incorporated in the message were not
well founded. Professed forecasts of the
contents of the message confined them
within the lines of the series of addresses
made by the president on his tour of the
country. This tendency to reverse the
opinion of things was taken TO point TO a
professional origin for much of the dealings
in the market.
The announcement of the acquisition of
majority of the stock of the Equitable
life assurance society by J. ?. Morgan, to-
gether with the control of the Equitable
and the Mercantile trust companies, was
of important effect. The transaction was
viewed in connection with the earlier ac-
QUESTION of the Guaranty trust company
BY partner in the firm of J. p. Morgan &
Co. The prodigicus Capitalization in the
directing power of credit institutions re-
sulting from this suggests a line of policy
dominant in the foremost financial minos
of the country which seems to indicate con-
hdence in exemption from effective inter
ference in the processes OF combination and
consolidation.
z resumption of the operations in United
States steel on a rising scale was not dis
sociated from this feeling.
Preliminary estimates of the weeks cur-
reacy movement show some very strong
cross currents in the movement. Sub
treasury operations. including deposits for
telegraphic transfers to San Francisco,
have absorbed Sc, z76, coo, and the Sold out
go to South America has taken S5,35o,00o
more. Gold has gone to Canada also in
large volume during the week. Yet bank
ers compute a sufficient return from va
rious domestic points to cut down the net
decrease in the cash item to less than
81, ,ooO. 600.
The loan changes are obscured in conse-
quenoe of the effect of the December dis
bursements and the deposits against the
retirement of Chicago, Rock Island and
Pacific collateral SIS in connection with the
sale of the st. Louis and San Francisco.
The call money rate did not get above
per cent, and this somewhat easier tone in
that department was more regarded than
forecasts of the bank statement.
Bonds were irregular; total sales (par
value) "a, ,z96 600. United States bonds
were unchanged on call.