The Washington herald., 1911-01-10
WALL STREET NEWS
Market in a Thoroughly Lii
quidated Condition.
LITTLE SELLING Is PROVOKED
Oafside of Bank News There Il
Little of Importance-LarEe De-
cline in Amount of Copper ON
Hand-C0ttOn Market Ii Heavy.
Money Rates Lower, but Firm.

New York, JAN 9-In analyzing the
causes for the recent strength in the
market. following upon such unfavorable
Developments. at least from speculative
points of view, as the announcements on
Saturday and to-day regarding various
local banks, several facts stand out as
rather clearly defined. One is that the
current stock market is in pretty thor
oughly iquidated condition.
II there had existed a great speculative
account for the rise, either in the Wall
street commission houses or, as has been
often alleged, through the medium of
loans extended by financial institutions
direct to various large operators, the
tidings that have lately broken regarding
such number of local institutions would
have resulted beyond any possible doubt
In serious market declines.
But the news really seemed to provoke
no selling whatever, and, if anything, led
to buying of stocks. based on the idea
that something untoward that had been
overhangtng the market had become a
matter of history and was no longer to
be feared
Market Holds Strength.
Outside of the bank news to-day there
were no occurrences of special impor-
tance. The stock market held its strength
nrmly throughout. becoming a little
heavy in the latter part of the day upon
natural profit taking. Grain prices rose
sharply, owing to the operations of a
large pool that has lately been formed
Tor the purpose of advancing the prices
OF the important wheat options in Chi
cago- The chief basis for this specula-
uon seems to be, as has already been
stated In this column, the large decline
In the price Of wheat that has taken
place since midsummer, and the fact that
at the current level of quotations the
farmers are not inclined to sell their
grain, with the consequence that de-
liveries of wheat at primary markets are
becoming small
The December report OF the Copper
Producers Association showed another
large decline. and for the fifth consec-
utve month in copper stocks. The falling
on was S,359,0C pounds and was the
result not so much of reduced production
OF copper as enlarged shipments of the
commodity to foreign countries.
The cotton market was again heavy,
and its entire action in the last fortnight
has been such as to justify the opinions
OF those maintain that the market has
grown stale at an inflated price level
Sterling exchange went through some
nervous fluctuations, closing ten points
lower. A factor of moment in this re-
Eard is, of course, the rapid movement
toward lower rates of our own money
market.
Banks Report Gains.
At the opening of business this morn
ing the banks reported a gain from the
subtreaSury Of nearly $4,000, 600 since last
Friday, and reports from Chicago told of
a similar accumulation of money in the
banks there The bulk of the money
loaned on call for stock exchange DUR
poses to-day was put o.: at So per
cent, and time money was again lower
even if applications for it seemed to be
a little more numerous.
Late in the afternoon it became public
ly known that city bond issue of $50,
cO.WO would be issued within short time
While it is understood that the rate of
interest which the new bonds will bear
has not been finally determined upon, there
is very strong probability that the
rate will be AZ per cent Presumably
this will assure the success of the loan.
1t is also altogether probable that such
railway refunding and other financial ar
rangements as are to be consummated
during coming months will be upon terms
that are similar or nearly so.