Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-02-07
CLOSING IS uSTLESS
SIiuht Recession for Weekend
Looked For.
THE BANKS LOSS IN CASH
Statements of Railway Earnings a
Gratifying Exhibit.
IMPROVEMENT IN LONDON
Market and Business Situations Are
Regarded More Cheerful-Irreg-
ular Rather Than Depressed.
Special Dispatch to The Star.


NEW YORK. February 6.-Today's
stock market was, taken in its net re-
suits, relatively listless affair with a
moderate inclination toward heaviness
The market was fairly animated in the
first of the two hours of business.
financial sentiment being favorably i'm
pressed by yesterdays pronounced ex-
hibition of strength in the bond market.
Nevertheless. the trading element were
inclined to sell stocks in a scalping way,
baSing their ventures upon the fact that
as the market had' risen throughout the
first four days Of the week and held
yesterday at practically unchanged prices
something of slight recession was called
for.
An impression was broadly dispersed
also that tOday's bank statement would
make a poor showing, while more or less
absurd talk was INDUCED in regarding a
Japanese war scare. The London market
was slightly lower on account of week
end profit-taking, but little or no bust
ness was done here for London account.
Compilations as made today of the earn
inSs of two important railway companies,
the Union Pacific and Louisville and
Nashville, for the first six months of the
fiscal year ending December 81. 1908,
presenting a showing that was certainly
not at all discouraging to holders of
railway stocks and to believers in the
future of the country's railway business.
Two Roads Good Showing.
The Union Pacific earned in the period
a balance applicable to dividends on its
common stock equivalent to a distribu-
ton on the stock of over 11.3 per cent.
The Louisville and Nashville similarly
showed a surplus after dividends of ST.
40, 14o. an amount equivalent to a dis
tributiOn of $50 per cent en- its capital
stock for the half year alone.
The bank return was a bad one. as
everybody expected. but it's unfavora BILE
nature was of course due to the special
transactions of the week, caused by the
anticipation of payments by the banks
into the subtreasury on the governments
call for return of deposits and the ac-
cumulation of cash by the trust COM
panies to meet the requirements of the
new reserve law. The banAs thus sus-
tanned a net cash loss under the average
system Of calculation of over 1900, 600.
resulting in a decrease of 1920. 900 in
reserve. The actual condition of the
banks exhibited loss in cash OF some
thing over $19OOO,OOO and q decrease in
reserve of nearly $11,OOO,0OO.
While from one point of view 1t may be
said that conditions of deadlock in the
stock market remained this week substan-
TALLY unchanged without any develop
ments of Importance whatever in the
fair to say that both the market situa-
ton and the business situation were on
the whole, more cheerful than they were
in the week previous.
Securities Easily oversold.
1t was evident that the market for Sc
curities of a more or less speculative ma
ture was such that it became easily over
sold, while there was no doubt whatever
of continuation of public absorption of
securities of investment kind.
A distinct improvement in financial SEN
timent was perhaps more apparent in
London than in this country. The situa-
ton in London has, however, been more
depressed than here. particularly by rea-
son of the fact that the French demand
for gold caused by the Russian loan GEN.
tered almost solely upon the London mar
ket, and SO brought it about that the Bank
of England's reserve was reduced to a
pretty low level. With the Russian loan
out of the way, all Of the European ex-
changes have changed in favor of London
and the Bank Of England is gaining gold
from great variety of quarters and has
managed to divert the Argentine demand
for gold SeaSonable at this time to New
York. The net result has been a consid-
cradle decline In money rates in London
and corresponding cheerfulness on the
part of people there interested in finan-
cial concerns
In our own country, although it is COM
monty said that business is still dull, In
disputa BILE truths stand out that the rail-
roads are pretty nearly all showing in
creases in gross earnings as compared
with the same period a year ago, and that
bank clearings and the records of failures
over the country testify to a steady and
gradual Improvement in industrial and
business affairs
Favorable Comparisons.
1t is, of course, to be remembered in
making these comparisons that business
at this time last year was at low ebb.
On the other hand 1T is fact that most
railroad companies are now showing gross
earnings equivalent to those of the year
1905 and in some Instances to 1906 much