Norwich bulletin., 1909-12-02
FINANCIAL AND COMMERCIAL.
SUBSTANTIAL PRICE RALLY.
Demand for Stocks Was Somewhat
 DesuItory in Character.

New York, Dec. 1.-Prices of stocks had substantial rally today, in ac- cordance with the general expectation of the professional element in the spec ulation. A general demand to cover outstanding shorts came from the bears and the withdrawal of selling pressure marked the subsistence of apprehension felt for several days past over the antitrust programme at Washington. Another influence in the upward reac- tion was the formal action by the house of lords in London appealing the budget decision to the electorate. The effects of this action on British financial affairs have been so much dreaded that g. sense of having over estimated the consequence is left in the prestnce of the actual event. The opinion holds that the steps made nec- essary in BritiGh financial affairs by this action, as well as the unsettling influence on public sentiment of the grave governmental issues involved are destined to have e restraining effect on financial markets for some time to come. The same mixed view may be said to hold on the longer outlook in the corporation regulation question in this country. Something was made today of report of an intention on the part of the department of justice at Washington to ask for a postpone ment of the hearing In the American tobacco case before the supreme court, wich was set for December IS. The first view of this report seemed to be a putting off an evil day from the stock market standpoint. This view was modified by the expressed eagerness of corporation representatives for as ear ly conclusion as possible of the pend ing cases. Another factor in the cas- fer feeling regarding the legislative prospect was the reported expression of confidence OF the part of the con- gressional leadership in a substantial agreement between the executive and congress for the repression of radical measures. The demand for stocks, which was attributed principally to the uncovered shorts, was somewhat de- sultory in character and showed some hesitation in the higher price levels and with the passage of time. There was a resumption of leadership by some of tho highly speculative issues and a renewal of real rumors. These centered conspicuously about the dis solution of the Rock Island and St. Louis and San Francisco Union. and the possibly alternative alliance that might be made. Wabash was placed in the field of these conjectures, and a movement in Lehigh Valley in Phila- delphia added that property to the supposed combination. Its movement was an influence also on the renewed advance in Reading, although the lat ter property received no notice In the combination stories. The retention of the same dividend ratc by New York Central and American Smelling dispos- ed of late rumors of an intended in erase, hut did not prevent those stocks from advancing with the mar ket. Chicago and Northwestern fur nished another example of the recent tendency of stocks to decline in price when stock increases are proposed, however attractive the subscription rights to present stockholders are made The outside market promptly appraised the subscription rights to the new stock at par to the extent of 25 per cent holdings at above IA, but the price of the present stock fell four points, following an anticipatory de- cline before the announcements. The ments was perceptible in the rise in call loan rates late in the day to , 1-2 per cent. The continued large engage ments of gold for export and the with drawals of cash from the banks by sub-treasury operations have narrow ed the resources to meet the Decem- Der 1st demand The inauguration of the railroad switchmen's strike in the northwest proved a disappointment of hopes that satisfactory settlements of labor controversies, which are expect ed in other directions, would be effect ed. The market closed firm under the Influence of the Wabash 'deal' ru- more. Bonds were firm. Total sales, par value, $4,426,oe0. United States bonds were unchanged on call.