The Washington herald., 1911-02-04
WALL STREET NEWS
Moderate Reaction Follows
Week of Advances.
NO LARGE BLOCKS FOR SALE
Stocks Dealt Out Gingerly and Sell
ing II of Dribbling Character.
Sirmer Tendency in the New City
bond Issue-Good Bank Statement
IL Looked for To-day.

New York, Feb. 2-The moderate re-
action which took place in stock market
prices to-day was generally greeted in
Wall street even by those who are be-
levers in higher prices in the immediate
future as good thing. The market
has risen without any reaction at all
through the last seven business days,
and even if the rise has been attended
with several intermediate recessions in
the course of each day it has yet un-
doubtedly reached a point where more
of natural fall is looked for than has
yet taken place.
Under such circumstances prospective
buyers of stocks are naturally inclined to
delay purchases until such a fall occurs
as according to common experience is
due to occur at any moment 1t was,
however. very noticeable to-day that
when the market declined it did so in
halting and gingerly way, and on a
great decrease in the volume of tranSac-
tions.
No large blocks of stocks were offered
for sale and the selling was of what
Wall street calls a dribbling character.
There was, in other words. no pressure
of liquidation in any way apparent.
Meantime, too. the bond market contin-
ued exceedingly strong and presented a
scene of diversified dealings.
Firmer Tendency in Bonds.
frner tendency was shown in the
market for new city IA per cent bonds
when issued" and general investment
buying was manifeStly in progress
through the whole list. All this was
more important inasmuch as preparations
are still going on rapidly for further
bond issues. There is as yet absolutely
no sign of any tagging interest in trans
actions Of this sort which have already
reached a larger total than is common
at this period of the year, and which
must, if precedent is followed lay a
sound foundation for an upward move
ment in stocks in due course of time
1t is, of course, to be borne in mind by
spectators and others that these oper-
ationS leave temporary trace upon the
condition of the banks as weekly report
ed, that is to say, that they serve for the
time being to increase bank loans which
will be paid off when the transactions in
question are completed.
Also. the great difference now current
between time money rates in this coun-
try and in London is unquestionably re-
sulting in lending of money by bank
ers here to London houses with the fur
ther result that bank loans here are be-
ing enlarged, and of course, that ster-
ling exchange rates are advancing So,
too. time money rates inevitably tend to
become firmer.
Rates Will BE Equali.ed.
Meanwhile, the movement will end as it
began by a coming together of discount
rates in the two great commercial and
financial centerS referred to- This pro-
cess is already in operation, as while |
our time money rates are hardening those
in London are lowering. and touched IA
per cent, or three-Quarters of l per cent
below the Bank Of Englands regular fig
ure.
With conditions as they are at pres
ent, bank statement tomorrow sol
superhcially favorable as that of lastl
week can hardly be looked for, although
as matter of fact underlying bank con-
ditions from the point of view of this
courtry are becoming stronger and bet
ter all the while.
To-day's market was. after all, irregu-
lar rather than reacuonary, and an ex-
animation of price changes through the
list of securities shows many advances
The real feature of the day in the finan-
cial world here and abroad was a fur
ther sharp break in the price of various
commodities.