The Washington herald., 1911-02-05
WALL STREET NEWS
Reports of Railway Earn
ings Are Favorable.
STOCK MARKET AGAIN B00MS
Continued Shifting of Bank Loans
and Deposits Incident to the &c.,
ditions Show COnsistent Improve
ment-ForeiEn Trade Better.

New York, Feb. 4-Beyond the publica-
tion Of several railway earning statements
for December, which were all of the same
pleasant tenor as those which have been
lately received fer that month. and news
Of the heavy volume of subscriptions
made here and in London to the new
Cuban bond issue, there was no develop
ment of interest to-day in Wall street eX
cept the routine details of the weekly
bank statement. and the bank return
when 1t appeared at Il o'clock was only
notable in that it exhibits the curious
effect of the continued shifting of bank
leans and deposits incident to the city of
New York's recent $50. 900 bond sale.
and also that of the preparation for
further issues of corporate securities
1t was expected by many bankers that
the return would be on its face decidedly
unfavorable inaSmuch as the transactions
referred to usually have the effect Of
making temporary large increase in
bank loans not offset for the time being
by other credit entries that will make
their appearance in due course.
Statement Is Explained.
AS it turned out there was something
of this disturbance in the average state
ment OF the bank which reported an in
crease in leans of s34 900 and an in
crease in cash of over Sc, o00.0G0. the net
result of which was a decrease in the
average surplus of s3,7iO,OOo. The actual
statement. however was more representa-
tive of the true state Of affairs in a re-
port of an increase in loans of but 50, TO-
900, which left a small increase in the ac-
tUal reserve figures.
The stock market was in strong con-
traSt to the hesitating and reactionary
tone shown yesterday. Prices at the
opening were in the main at last nights
closing level, but advanced steadily there
after Until the end of business, touching
n many instances the highest figures yet
shown in the current upward movement
The notable fact about the stock mar
ket this week was. of course. that as ad-
judged by the record of quotations taken
at the close of the market each day
prices rose continually through the week
until Friday. when they declined slight
ly; and this phenomenon Of daily ad-
vances really began on Thursday of last
week, so that the market up 10 Friday
should have enjoyed seven days success
sve rises.
Market Settles Itself.
1t was. therefore. entirely natural and
iiuStu d welcome occurrence tnat toward
the end of this week the rise halted, and
the market was allowed TO settle itself
Search has to be made for a long time
back to discover a period when such
another continuous advance as that de-
scribed has occurred, but after all, the
action of the market was in no way sur
prising to those who have been close fol-
lowers of financial events and have tried
to keep closely in touch with the bus
.inesS spirit of the community.
The truth is that business matters have
slowly improved and that confidence in
the future is becoming brighter These
circumstances. accompanied with easy
money. became pretty plain last week,
and they led, as a matter of course, to
a rising stock market The iron and steel
companies are all reporting increased or
ders. especially for finished materials.
The railway companies for December
generally made extremely favorable earn
ings statements. Both the countrys ex-
port and import trade is in better shape
that is to say that exports are increaS-
ing and imports are decreasing.