The Washington herald., 1911-01-08
WALL STREET NEWS
Market Shows lJnl0Oked-f0r
SteadineSS.
BANK CLOSING INEFFECTIVE
Expected Lifelessness of Usual Sat-
urday Afternoon on Exchange Is
Turned Into Day of Unusual Sig
nifcancc in Financial Circles.
Market Firm Under Pressure.

New York, Jan. What everybody
expected to be the usual lifeless and
stupid stock market of a Saturday half
session of the stock exchange in the
current dull times was turned to-day by
the course of events into the most highly
significant market seen in the last SIX
months. Before the opening of the
stock exchange ii became a matter OF
more or less general knowledge that the
State superintendent either had closed
or was about TO close the Carnegie Trust
Company, and such an announcement, OF
course provided an interesting test of
the stock markets general present sta
bility
At the opening quite a little stock was
sold by spectators. who jumped to the
conclusion that tho shutting up or the
trust company would cause an outbreak
of market liquidation. But it soon be
came evident that so iar from producing
liquidation the event referred to was the
signal for the execution of large buying
orders that had seemingly been held in
abeyance until tn" closing of the Car
noeic Trust Company had become a mat
ter of history.
Within Il quarter of an hour of the
beginning of business the declining ten
Gency in the market. which was at no
time strenuous, was sharply reversed,
and prices of all tho leading shares rose
with extraordinary briSkn"SS.
News Has No Effect.
Two things were plainly cvident-one
that the so-called bad news of the shut
ting up of the trust company had fallen
upon an absolutely s"ld-out stock mar
ket, and the other that the news. con-
$trued in its proper sense. was not bad
at all. The Carnegie Trust Company is
institution that has been in bad odor
for a long time. has had a Checkered
career, and its usefulness in the COM
munity as a financial institution ceased
long ago.
II is highly improbable that any large
financial losses will be entailed by its
suspensions. and the closing of its doors
WAS uniformly spUk'.n OF in banking cir
"IeS to-day as good rather than bac
thing. The stock market closed at II:
highest. and the weekly bank Statement
exhibited as il logically should. the in
fuencr Of th,, return to this center of the
money diSburSed by divdend-payinc cor,
porati"ns on January l. In the actua
form of the statement. or that taking
conditions as they existed at the close o
business last night bank loans decrease,
$22-..GG1. GO. cash increased considerably
over Sl""1.gf. and the surplus reserve
was enlarged ny Sl2--f5,'NN.
While it could not be said that ther.
WAS any actual or distinct improvement
in general business affairs last week
there was an obvious Improvement il
financial and business sentiment As con
Germs the security market the one obviou!
development of interest was a widening
demand for bonds. This did not take the
form of any startling uprush in prices oE
of the bringing out Of any new large
bond issues.
Stronger Feeling shown.
II i proper to say that better feel
Ing in all quarters, trad" circles. wei
as financial circles. was evident during
1hc week. The weather OF the period wa:
helpful to retail trade. and a genera
fan of snow or rain over the country wa!
Of benefit 10 the crops and OF immens,
advantage in WAYS other than agricul
tural to IT." drought-stricken districts o
New England.
IN the iron and steel industry curren
statistics told of such 4 reduction in pi:
iron production as must seemingly, i
continued al its present rate. bring tn
OUTPUT OF this staple commodity within
very short tim" to d point smaller thai
That demanded by consumption.
In the greatly discussed matter of price
for finished iron and steel products an
the possibility that these may be low
cred later on. it is exceedingly interest
in- to note that ruling prices here ar
already fully s. u ton lower on til
AVERAGE than they We're three years age
Bearing all these Iacts in mind ther
seems something more than ground 70
hope that the end of tn" depression i
the. IRON and steel trade is rneasurabl
near at hand.