New-York tribune., 1911-12-30
FINANCIAL MARKET
Recovery in Stocks, with Strong
Closing-Money Rates Easy.

The stock market decline of Thursday
carried over into the first hour of trad
ing yesterday. prices opening traction
ally down and continuing to decline
slowly for awhile, when a recovery set
in, which was not interrupted ana whcn
was most general and most active IN the
last hour. the market closing strong and
AZ the best prices of the day. The i'm
mediate cause Of the recovery was the
welcome. although belated, appearance OF
investment buying orders in anticipation
Of the interest and dividend payments OF
the coming month. and in London also
stimulus was given 10 the market by
purchasing demand from similar sources.
The continued ease of the money market
here was another contributing cause 10
the advance i'm stocks, but TINS satls-
factory condition did not prevail in Lon
don. where rather high rates for money
had a restraining and depressing IN
fuence on stocks, which closed sllshtiY
lower; nor in Berlin, where the urgency
of the demand for funds, demonstrated
in the last fortnight by German bidding
at relatively high figures for short term
loans at this centre. was evidenced ny
the advance in the oVer-the-year loaning
rate to 20 per cent. Receipts OF cash
from the interior have been exceedingly
heavy in the current week, and the esti-
mated net gain in cash by the local
banks has been more than Sl3,ooo,oOO.
which makes probable fairly favorable
Clearing House statement to-day. al
though a positive prediction Is never
more hazardous than in the closing week
Of the year. when the final arrangements
are being made for the January dis
bursements. The rate for call loans. TO
run until Tuesday. did not rise above
per cent, and this was an important
factor i'm tho strength Of stocks in the
late trading, when considerable covering
of shorts combined with speculative op-
erations on the bull side and with falr
amount of commission house buying TO
advance prices.
The most noteworthy gain was that OF
2s4 points in New York Central which
was bought on a large scale on the plans
for bringing about a gradual unincatloh
of the lines Of that great system. The
heaviest transactions were, as usual, IN
United States Steel common, which re-
ceded nearly point in the early trading
and then more than recovered its loss
closing fractionally up, as did Union Pa
Cific. the December earnings OF when
were declared by inside interests 10 show
improvement over November, and Read
ing. Mackay Companies stock was at
the outset the weakest of the list, drop
ping 10 74ts, or jl2 points lower than
the preceding nights close, under selling
credited TO the rate war between the cor
poration and the Western Union; its rise
later on was equally rapid, and it closed
AT tho opening level with net loss Of
only l., point. The InterbOrough-Metro
politan issues displayed conspicuous
strength on buying based upon the bet
ter outlook for the company securing
now subways and upon the definite step
taken Yesterday in the affairs Of the
Metropolitan street Railway Company.
The weekly reviews of the mercantile
agencies were cheerful in tone, one re-
porting something like buoyancy in
some Of the leading departments Of
trade while the others opinion was
that the year was ending with more
optimistic feeling in most lines" Rail
road reports for November were in the
main favorable The Erie's gross in
creased $S7.7J4. and net S27,054; the
Philadelphia * Reading reported an in
crease Of S231.191 in net earnings. and
the Canadian Pacific d gain Of $50, 244
in net. The Southern Railway on the
other hand. showed an increase Of SILL
291 in expenses t. $67.S41 in gross the
net earnings for the month decreasing
Sl43.JJO After tho close Of the market
il became known that the directors Of
the Allis- Chalmers Company had decided
not TO meet the January 1 interest on
the first mortgage bonds and "A friendly
receivership will probably result The
company has been working under diff
culties for years owing TO lack Of work.
ing capital, and A reorganization which
will place it on a sound basis has long