The Washington herald., 1910-01-12
WALL STREET NEWS
Declines Continue, but Not
as Great as Monday.
may IMPOSE PUNISHMENT
Various Members of the Stock Ex-
change Fear Mutiny OF Governors
To-day When the "ROek Island
Scandal" VIII BE Investigated
High Rates for Money Continue.

New YORK. jan u--PreEsure Of hqutda-
ton in stocks was again to-day the rul-
ing force in the security market The
: selling was perhaps not quite so gen
orally distributed as It was on the day
before, and at the close declines were not
as large. Nevertheless. the instances in
which active stocks escaped this pre-
vailing tendency were few.
The marlborough Metropolitan shares.
In whose market movements there have
been intervals Of mysterious strength for
long time past, rose quite sharply. the
preferred shares making a gain of more
than two points. Comparative frmness
was also exhibited by the Amalgamated
Copper. American Sugar Refining, and
Chesapeake and Ohio stocks; but outside
of these the market went down. IL not
with rush, yet with such impetus as 10
suggest the presence OF a common origin
In the selling. Closing prices were some
what above the lowest.
Fear Governors Action.
The gossip of the day abounded with
an effort to account for what seemed to
be the more or less unexpected action Of
the market recently and particularly the
petering out Of long cherished anticipa-
tons OF a January boom. One explana-
ton that was widely offered was that the
selling was connected TO a greater or
less extent with the action that the gov
= errors of the stock exchange are TO take
tomorrow. as is supposed. in the way Of
imposing punishment upon various MEM
bers Of the exchange for conduct in
connection with what is commonly known
as the Rock Island scandal OF three
weeks ago.
A prevailing If incorrect suppOsitiOn
was that this would entail the temporary
or permanent discontinuance Of business
by one or more stock exchange houses. in
volving a transfer Of customers accounts
TO other firms. and it may be a certain
amount OF liquidation for money-raising
purposes. But whether all this was re-
sponsible in any material degree for to-
days fall in the market, and for the
weakness that has shown since January
!, is very much to be doubted.
It was again declared that foreign SELL
ing Of stocks, based upon rumors OF the
death OF Emperor Francis Joseph of Aus
tria and Washington selling. growing out
Of supposed International complications,
in which our country may be engaged
with Japan and Germany. played an i'm
portant part in the days results.
Fear Party Strife.
OF course, few people attached any i'm
portance TO reasoning of this sort. More
weight than to any of these matters
should be accorded to tho possibility OF
adverse political contingencies arising
from the confusion and internal strife
now manifestly agitating the members Of
the dominant party in the National Con-
gress. This clearly may have bearing
upon the result Of the next Congressional
election
But the changed aspect OF the stock
market recently has been caused chiefly
by two developmeuts-one, the discourage
ment felt generally IN high financial cir
cles over the unsatisfactory and unfor-
tunate attitude as suggested by the~na-
tional administration in the matter Of leg
islation affecting the railroad companies
and other corporations; and the other
the less favorable prospects Of the money
situation in the country now gradually
unfolding.
To-day, 1t is true, the downward trend
in call money rates shown since the CON
clusion of the January disbursements
was again continued. Nevertheless that
as high a renewal rate as IL per cent
for call funds should be made as late as
the present date IN the month Of Janu'
aIy. was not altogether pleasing fol
those who had been looking for a great
trelaxation in the price Of money after
the beginning Of the year, and this fac
and a definite tightening of time money
that occurred to-day spoke with consid-
cradle emphasis as TO the general future
outlook in this regard.
It appears TO be the consensus in the
larger banking circles that such Is tn,
increasing demand for money for use il
business, particularly in the West. thar
whatever may be the varying rate If
Wall street for call money, the ten
dency Of time money Is likely to be to.
ward a higher level for an indefnit,
time 10 come.
There is nothing IN all this to caus,
any discontinue whatever TO the mer
chant, the manufacturer. or other indi
viduaI engaged in legitimate business
Whether, however, there viii be as great
room under these conditions for an ad
vance IN the stock market in the month:
Immediate 10 come as there was in tn,
per cent money market that held
throughout the greater portion Of las
year, is obviously another question.