The Washington herald., 1910-01-10

New York. Jan. 9.--The stock market in
the hrst week Of the new year was un-
doubtedly disappointing. regarded in its
general aspect, to Spectators for the rise.
This was. OF course. because the market
had previously been governed 10 greater
or less extent by speculative hopes and
anticipatiOns Of a January rise" that
was to SET IN Immediately after the first
81 the month.
More thoughtful analyses Of the situa-
ton have for long time past made It
evident that there was really nothing in
the play Of current forces to bring about
an advance in prices in the first month
OF 1910 that were not already effective
u the last month OF 1903. The usual
cause Of en- advancing stock market In
January Is a release Of money that has
been held Up awaiting January disburse-
ments; or TO speak more definitely, a
sudden change from high money mar
ket 10 a low one. But IN the present case
the money market has not been a factor
Of defniteness in the situation. An aver
age rate for both call and time funds
prevailed during the month of December
that was not such as 70 deter buying OF
stocks by any one who wished to do so.
Same Conditions Prevail.
There is no prospect that money rates
in the month OF January viii be any
easier than they were In December and
the indications OF the moment are that
II anything these rates will be higher. Il
seems to be the opinion in the upper
banking circles that while a slight re-
Taxation in money rates may take place
IN the course Of a couple OF weeks, owing
to the return of money to this city from
out-of-tOwn places. 20 which II was sent
on the first OF the year, yet that If the
expansion OF business in the country Is
10 continue at its present pace the gen.
eral tendency Of the price Of money must
be to advance.
Reason for this rests largely upon the
fact that all statistics go TO show that
the cash holdings OF the banking institu-
tons Of the country Of the trust COM
panies. and private banks. as well as
national banks. are down now TO the
limit Of the legal reserve.
The national banks have been in this
condition for a considerable length OF
time, although previously private insti-
tutions had been more comfortably
fixed. Now It seems to be the case that
the Invisible store Of credit in the coun-
try, as well as the open and official
boards. has been pretty we'll cleaned UP:
and while, OF course, under the pressure
OF business demands q further extension
Of credit may be made, such an appeal
must entail a higher price for financial
accommodation.
Compilations OF statistics on this point
are exceedingly interesting right at the
present juncture. On November Is of
last year, the date OF the last call issued
by the Comptroller Of the Currency for
e return OF the condition OF the national
banks, the loans and discounts OF these
banks stood az S5,1fS 7s7, $50. The full
meaning of these figures Is shown by the
fact that even in March, 1907, when the
great business boom throughout the
country was at its height these loans
only stood at $4,525. S44 49S.
H1As@ y AAAsA IE1CHa
II is true that the Bank OF England
reduced its discount rate last week from
~ to 1 per cent. but the banks price for
money still stands as high as It usually
does at this time Of the year. A large
sum Of money has 70 be repaid by the
bank TO the Bank Of France that was
lent by the latter institution last fall, a
1{rs d =
heavy demands for money are being ad-
dressed to the English financial markets
from out OF the country, such, for In
stance. as that comprised in the Indian
loan OF s37.5O 600, which was announced
last week
Attention in Wall street was. of course.
much engaged with President Tafts mes
sage 20 Congress. and also to a greater
or less extent with the argument before
the Supreme Court at Washington in the
tobacco case. The two matters referred
TO were really one and the same, since
running through both was a. Identical
presentation OF the views and principles
now controlling the existing political ad-
ministration IN Washington upon the
great subject Of the restriction and regu-
lation OF corporate industry.
That portion OF the Presidents address
TO Congress referring to the railroads
was decidedly obscure. The President
said that the railroads ought 20 be pro-
hiblted from owning stock IN a COM
peting line after a certain date but thew
should be al liberty to keep the stock
that they had already bought and to buy
more If it was necessary TO protect the
minority holders OF the shares OF the
railroad company thus acquired. Never
theless all this owning and buying was
TO be subject, as before, to the general
provisions Of the existing antitrust law.