The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1910-02-04
WALL STREET NEWS
Heavy Selling of Stocks Fea-
ture of Active Day.
RUMORS PROVE UNFOUNDED
Attacks Due to Work of "Hear"
Spectators, Following Unsettled
Last Tuesday--NO Danger of Re
ductiOR OF Railroad Dividends.

New York. Feb. S.-Rehection over night
upon yesterdays financial developments.
and the entire general character Of the
financial situation engendered a highly
pessimistic feeling to-day in the financial
district. and led from the outset of bust
nes to very heavy selling Of stocks for
both investment and speculative account
Transactions for the entire day reached
the largest total Of any full business day
In the year thus far. and save for a rally
ing movement toward the close. due pro-
badly to the taking OF profits by sDecu-
lators for the fall, the market was as
weak from stsrt TO finish as II has been
at any time IN the last six months. OF
couse, nearly all the prominent stocks
made new low records upon the present
movement.
It may very we'll be that to-day's break
IN values had its incipiency in attacks
by bear" spectators, using as their
chief club, the unsettled feeling arising
out of the failure announced on Tuesday
Of q large and well-known investment
house
Rumors Not Verified.
Naturally enough rumors were actively
circulated to-day that other houses were
in trouble. their difficulties barking back
as was alleged 10 the depressed state OF
the bond market But such stories were
promptly declared TO be unfOunded by
the best banking authorities, and in all
other quarters where knowledge Of such a
state of affairs would necessarily exist
.TE "a Tag "a
reasons for believing that Tuesdays fail
ure Of the Fisk & Robinson firm was
of purely individual sort.
The current bond market is no doubt
unsatisfactory, and long has been, but
II requires no stretch OF the imagination
10 perceive that underlying conditions in
this regard are rapidly changing With
a prevailing call money rate Of 2l-2
per cent. and with time money standing
at S1-2 per cent for nearby periods,
per cent for six months. and IA per
cent for over the end OF the year, the
path Of Improvement in the bond market
has certainly become smoother. Indeed.
some signs Of recovery in this particu-
lar market were even to-day notice
able
Further. when all the adverse factors
Of the present situation are given due
weight il is yet manifest that such a
marking down Of values as has taken
place must in due season attract invest
ment buying
No Reduction in Dividends.
There is no probability that railway
or industrial dividends are in danger OF
reduction in the calendar year just
started. A number Of these stocks are
already selling so as to yield 8 per cent
or more as an investment return. once
more, therefore, a disparity is presented
which is in its essential nature favor
able TO stock market values and IS of
exactly the same sort as that which
was the true foundation Of last sum
mer's advance between the money return
on stocks held and the loaning rate foI
the use Of money IN the open market.
Two matters are, however, Undoubt-
edly holding the security market il
check Just now, and they may likely
depress prices further before the market
touches bottom. One Of these Is The
immense uncertainty as to the character
OF the decision OF the Supreme Court
OF the United States in the American
Tobacco and Standard Oil cases.
The second adverse influence IN the
market IS one corollary TO that which
has Just been referred TO and involves
the impairment OF general business nov
noticeable as the result OF the recurrence
OF the antitrust agitation.