The Washington herald., 1910-01-04

New York. Jan. SIN the London market
to-day prices of American stocks were
well Up to or about the parity OF the
closing prices in this market last week
and at the local opening spirited buying
caused fractional advances in very many
OF the active stocks. But the prices at
the opening or in the very early trading
represented the highest range of the day,
and it was only for a few minutes that
the market 1attered the expectation OF
such a heavy reinvestment demand accru-
ing from the distribution OF $225.0000 900 In
January interest and dividend payments
as would inspire a brisk upward move
ment.
When, in a short time. the force Of the
outside speculative and investment buy
ing was spent, the financial community
had little to say Of the reinvestment de-
mand and was concerned or interested
principally in the outcome Of the con-
ference regarding railroad legislation be-
tween President Taft and six of the most
prominent railroad presidents, In an
advance in call money which carried the
rate TO a higher point than at any previ-
Gus time since the first week in jan
uary, 1908
Watch the Conference.
The conference In Washington was, of
course, regarded as matter Of the
highest Importance, and undoubtedly
tended to cUrtail the amount Of invest
ment buying. investors naturally desiring
TO have the policy OF the administration
fully outlined before placing their funds
IN either railroad or industrial securities
Nothing that could be considered def
nitely favorable was heard from Wash
ington, and the abundance OF unfavor-
able report throughout the session
strengthened the disposition to refrain
from commitments on the long side of the
market until the Washington attitude is
definitely determined.
With the buying power thus restricted
the market became in the afternoon
keenly susceptible TO the speculative
liquidation and short selling induced by
the furry in call money. As the cali
money rate continued to advance to the
close Of the session, so stocks continued
10 decline which was weak, and in most
cases. at the low point Of the day.
High Rate for Call Money.
The high rate for call money, Il per
cent. which was reached Just before the
close, compares with a high rate OF 60
per cent in the first week Of January.
1906. and 30 and 20 per cent, respectively.
in the corresponding weeks of 1907 and
1903. and was accordingly well below the
rates in corresponding periods Of recent
years when business has been active.
Nevertheless the rate IN the first week
in January Is normally below that of
the past week IN December. and since 2
per cent was the high rate last week.
to-day's advance was somewhat surpris-
ing to bankers as well 10 spectators.
The demand on the floor of the Stock
Exchange was much greater than had
been expected after the relatively mod
crate demand on Friday. and it was
obvious that In other directions as well
as the shifting Of accounts and other
money movements IN connection with the
January disbursements, were Unexpectedly
confusing.
An early return Of a normal rate for
call money was predicted by many
bankers, but in many cases this predic-
ton was qualified by the proviso that as
to-day's rate was higher than bankers
generally had anticipated. so the existence
Of decided frmness in the call money
market might continue several davs
longer.