The Washington times., 1911-01-22

creased somewhat in the stock market
of the week, and speculative sentiment
was more hopefully inclined, but the
price movement was irregular and the
trading lost none of the professional
features which have characterized deal
ings for a long time past.
In fact, professional tactics were even
more in evidence than during the pre-
| ceding week, as was evidenced by the
circulation of some rather foolish deal
and rumor stories, and by a general
marking up of numerous specialties and
minor issues of problematical value by
various little pools. Profit taking in
| fluenced some late recessions,. but the
selling was not regarded as important.
| Commission houses reported practi-
cally no expansion or general public
| interest or outside participation In the
speculative division of the market but
| it is definitely known that some of the
| larger operators have taken a firm po-
sition, and a large position at that, In
certain issues, among which Reading.
| Norfolk and Western, and United States
Steel are most frequently mentioned.
Under the last call OF the Comptroller
of Currency, made public during the
| week. the reports of certain large in
stitutions, like the National City and
the First National Banks, show in
creased security holdings. Disclosures.
like these. have added to the stability
of the stock market, and give encour-
agement to the professional element
Securities Versus Money.
Securities purchased by banking in
ooI 10 70
likely to continue indefinitely in the
| hands OF the present holders, for the
buying referred to is more in the ma
} ture of a short term investment than
| anything else. and is influenced. ap-
parently, by a belief on the part of
| moneyed men and moneyed institutions
that interest rates are going to rule
! very low indeed, covering period OF
say six to eight months. In consequence
of this. IT is held that surplus funds
put into well-selected stocks at pre-
vailing prices, are likely to return more
| in interest than il laoned in the market,
Or employed in some other way.
That some such consideration as this
has entered into the calculation Of buy
ers in the stock market, is indicated, in
part, by the marked reduction in the
floating supply of good stocks. Wall
Street firms, as rule. are not borrow
ing much money, and brokers are carry
ing very few securities, but stocks have
gone somewhere, and as they are not in
the brokerage offices, the traders feel
quite confident that the banks and trust
companies are increasing their lines.
While the short interest is apparently
much reduced. there is always a bear
account in the market. and such as ex-
lists now, together with the dearth of
floating stock, has created a strong
technical position, of which one group
of traders took advantage early in
the week to bid up prices.
No Runaway Market.
In influential banking circles, even
among men who are credited with hav-
ing taken a long position on stocks,
there is no disposition to look for any
very decided improvement in the near
future, and certainly not until the ques-
ton of railway rate advances is decided
or the Industrial trust decisions have
been rendered, but in the meanwhile |
liquidation has ceased, bonds are NOV |
ing with considerable freedom, and there |
seems every prospect that an excellent
market will develop for new investment
issues. If such is the case, industrial
reaction is not likely to run as far as
Wall Street has feared, and with rail-
way earnings maintained as well as
they are, there is not much danger of |
dividend reduction by important cor
porations.
Every indication points to the prob !
ability Of very heavy demands for capi- |
tai by railway and industrial corpora
tions during the coming year, the fore |
runner of which was contained in the |
announcements of new financing made |
during the week. These include S19, Co., |
Delaware and Hudson per cent refund !
ing bonds, s10,O00.OO0 American Tele- |
phone and Telegraph Company per !
cent collateral trust bonds, $7,000 900 |
Delaware and uHdson per cent refund |
ing bonds, and s22, ,OO0, 900 New York, New |
Haven, and Hartford one-year ~ per |
cent notes, sold in three different lots |
to various banking groups. All these |
issues were very well received with the |
exception of the New Haven notes, |
which were criticised because the finan- |
cial district did not understand the rea- |
son for such extensive temporary bor- !
rowing, at high interest rates, at a. time |
of relaxing money.
Impending Bond Issues.
In addition to the above. there were a
large number of smaller issues, and the
Street is filled with rumors of impending
offerings, including one which consti-
tutes bull argument on Reading, that
of refunding some $4,000, 900 maturing 6
and per cent bonds at a lower interest
rate, and another dealing with New
York Central. Street gossip is dealing
with some very big figures concerning
the new authorization of the Central
road, and, as under the terms of the
$50, 100000 4 per cent debenture of 1904,
that loan must be secured equally with
any new mortagage on the property,
the face of the new loan is likely to be
large. Whether it will run up to as
huge a figure as $3.50 100000. which one
hears mentioned, is a conjecture, and
it Is understood that the amount to be
issued, in any event, will not exceed
$50 100000.
The interest aroused in new corpor-
alton financing thus far announced and
impending is as nothing. however, when
compared to that which converged upon
the sale Of s60,Ooo.OO0 New York City ~
per cent bonds. Bankers and bond deal
ers regard this sale, which comes off on
z1oIy