The Washington herald., 1911-02-03
WALL STREET NEWS
Great Power of Absorption
Shown by the Market. :
TEMPORARY REACTION COMES
Northern Pacific Falls Nearly Three
, Points from High Level of Wednes-
day-Funds in London Command
Higher Prices Thnn in New York.
Big Cotton Crop in View.

New York, Feb. A-There was no such
sensational advance in any one stock IN
the security market to-day as was seen
yesterday in the Northern Pacific shares.
but strength in the market was, neverthe-
less, as generally dispersed as on the
preceding day. and perhaps to an even
greater extent. The real feature Of the
market was the power Of absorption
shown by it in the business done in the
early part of the day. when a large guam
tity of stock was Hauidated BY specula-
tive traders and others on the idea that.
iEasmuch as yesterday was the sixth sue
cessiwe day Of consecutive advance. prices
were at least entitled to a temporary reac-
tioa before the upward advance was re-
sumed-
Under this selling Northern Pacific
stock fell nearly three points from its
high level, touched on the day before.
but this proved to be the only decline Of
any moment whatever. After a fall of
less than a full point Of prices in gen.
eral, the market became dull, and only
dribbling amounts of stock were offered
for sale.
Rebound Comes Quickly.
Professional traders who had made
commitments for the fall fastened to re-
cover their stock, and a renewal Of the
rise started, which carried the leading
shares to the highest level seen on the
present movement and to points in pref
ty near all instances higher than any
seen in the last eight months Toward
the close of the day realizing sales caused
Scme slight recessions, but the market
left off with its underlying strength as
distinctly in evidence as ever.
A striking disparity is now presented
between time money rates here and in
London, funds in the English capital
commanding a distinctly higher price
than in our own city. 1t naturally re-
suits, therefore, that our bankers are
lending money to London, and the sterl-
ing exchange market is strengthening as
an inevitable further consequence.
The So 600 or sl2. 600 worth of the
recent issue of New York City bonds
secured by foreigners is also, as seems,
being carried by the banks here, for the
same reason as above mentioned. This
only means that the tendency of money
rates in all the worlds leading capitals
is to move toward an equilibrium
Strength in Investment Market.
Meanwhile the strength of the invest
ment market is undiminished and the
banks and bond houses are engaged
of new securities, for which numerous
advance applications have already been
filed.
There was not much of note to-day
in the weekly statements of the Bank
of England and the Bank of France, the
English institution showing an increase
of gold holdings during the week, but
a slight increase also in loans. resulting
in a small decrease in the banks pro-
portion of reserve held against liabili-
ties. The trend toward lower valua-
ticns that has for some time been evil
dent in both the wheat and cotton mar
kets was seen manifest to-day
On the cotton exchanges talk is begin
ming to be heard to the effect that the
cotton crop in the present season may
run in excess of the Il. oJ0, 600 bale figure
that up to a short time ago was COM
monty supposed to represent the maxi
mum anticipation regarding the yield
The decline in wheat was perhaps helped
by the renewed indications that stocks
of grain in farmers hands are still large
The Price Currents weekly report of
the condition of winter wheat was IA
vorable.