The Washington herald., 1911-02-19
WALL STREET NEWS
Movement Toward Recovery
in Market Continues.
LARGE ADVANCES AT CLOSE
Spectators who Sold Stocks Friday
Were Busy Buying Them Back
Yesterday-E1tra Session News Dis
regarded-Recent Price Decline
Regarded as Natural Reaction.

New York, Feb. 1S.-It seemed as if
very considerable number of spectators
who were engaged yesterday morning
and throughout the day in selling the
stocks for the fall were to-day busying
themselves in buying these stocks back
At any rate the movement toward a re-
covery in the market which most of the
time yesterday went on in a more or
less hesitating way was to-day continued
vigorously, and, indeed, without any
pause whatever. Final prices in nearly
every instance showed large advances.
The action of the market was the more
noteworthy perhaps because the dis
patches from Washington in the morning
newspapers indicated that the chances
were very strong of an extra session OF
Congress. at which there will be more
or less general Overhauling of the tariff
But this news was disregarded, and
was at any rate measurably counterbI-
anced by encouragement arising out of
the action of the Southern Railway direc-
tors yesterday in resuming dividends on
the companys preferred stock. 1t was
generally argued that great financial in
terests in charge of this property would
not have countenanced the step in ques-
ton if they had been doubtful about the
general business future
Little Financial News.
Outside of the reduction in the Imperial
Bank of Germany's discount rate from
~ to per cent and the weekly bank
statement there was little financial
news The average figures made out
small decrease in the surplus reserve,
but in the actual statement the surplus
reserve increased nearly s4OolOOO. bring
ing the actual bank surplus up TO $4O,
O53,700, as compared with S21,554,000 at
this date a year ago.
Financial opinion pretty generally set
tied down at the end of the week to the
view that decline in prices just witnessed
represented, more than anything else, the
natural reaction of a temporarily over
bought stock market. The financial Situ-
alton itself has certainly in no way
become worse since last Monday, but, on
the contrary. has in many respects
greatly improved. The money position
proper has daily tended toward greater
ease. AL the great national banks made
stronger weekly statements, and the
Bank of England and the Bank of Ger
many considerably reduced their rates of
discount In our own city, time money
was quoted at lower level. although at
this season the usual tendency for time
money in New York is to become frmer,
owing to the expectancy Of a larger use
of funds by the farmers in the spring
planting time
As regards the agricultural interests
themselves a drawback of some inn |
portance lately has been lack of rain
in the Southwest. This deficiency has /
just been supplied in a heavy fall of !
moisture in this region: while the winter |
wheat crop generally seems to have en- |
joyed throughout the greater portion OF |
the winter a satisfactory amount of snow |
covering. This better crop prospect, |
along with the admitted fact that un- !
usually heavy stocks Of grain will be |
carried over by the farmers into the !
coming season, was presumably re- !
Sponsiblc for The weakness displayed in |
The week in weak prices.
GOuId's Passing Noteworthy.
Indeed, in the last few business days
gratifying progress has been made in the |
necessary and altogether hcalthfpl work |
of a readjustment in general commodity !
prices. \ great speculation in cotton and |
coffee is tumbling down.
4 drop has occurred all over the coun- |
try in eggs, butter. and all kinds of food !
products. herein disclosing the benefit to |
the country of last years unprecedented |
crop of corn. In the financial world. !
strictly so considered, the most notable |
event of the week has been the passing !
Of tho Gould interest from the control !
OF the Missouri Pacific Railroad system, /
an occurrence which seems to indicate |
tnat this great railway property will re- !
Coive from now on the attention that it !
deserves The hope is indeed almost as
Sured that within four or five years from
date the Missouri Pacific will take the
n hat hH-
of the splendid location of its territory.
among the railway companies of the |
country. y good deal of money will |
necessarily have TO be spent in placing
the system in order, but it is very clear
that those who now have the property
in charge know where they can find the
money for the purpose.