The Richmond Virginian. (Richmond, Va.) 1910-1920, 1914-01-04
RECOVERY FOLLOWS
SHARP DECLINES
SELLING PREssurE ON THE STOCK
MARKET Is SOON
CHECKEn.
SURPRISE FOR STREET
INCREASE IN ngxSK SURPLUS RE
SERVES UNExPECTED--REAC
TON DURING WEEK con-
sIpERED MODERATE.

cline In stock prices this morning con-
Vorged rather conspiciousiy upon the
Artive speculative mediums, The COM
mon excuse for the weakness was the
Mexican situation. but even az the time
Of happening the movement suggested
drive" against the market more than
anything else.
The only question asked Was whether
the selling. presnning ita speculative
origin, was based on anything really
substantial. The answer TO that oues-
ton may have been furnished by the
subsequent recovery. for whatever the
nature Of the selling pressure. IT did
not last long and the second hour saw
much of the ground lost regained.
The weekly bank statement of the
clearing house Institutions VICE. every
thing considered. a remarkable docu-
nent Tho extraordinary necessities
Incident ID the last few days of the
cid year, and thu fact of the rise in the
call rate on Friday to ten per cent, had
led to universal expectation OF a
considerable impairment of the local
bank position. The increase in the
bank surplus reserves of ss.soo.00e fol-
lowing an increase In cash Of $i1,-
7ss, geo, was. therefore, more or less OF
q surprise
Rather Narrow Affairs.
On the whole the stock market last
week was a rather narrow affair. The
reaction which took place from the
high level made on the upturn could
hardly be considered more than mod
crate In all the circumstances. Not only
had the market TO absorb the usual
quantity of profit taking. inevitable af-
ter a brisk advance of the kind recently
Witnessed, but II is altogether probable
that renewed speculative pressure was
stimulated BY the general tenor OF the
news. Net changes in prices at the
cioee were not extraordinary. and the
general nndertone OF the Htnck mar
ket did not appear to have suffered any
noteworthy change.
The week In the financial world was
an interesting one, IL for no other rea-
son than II covered the turn Of the
year at which time there Is usually
more or less apprehension on the score
Of the year-end settlements to be made.
In addition there was several impor-
tant features in tho budget OF news
with y financial application. Perhaps
the chief of these In point OF general
interest was the announcement that
members OF the Arm of J. r. Morgan
A Company had, In response to a
change In public sentiment in regard
to these matters, withdrawn from the
drectorates OF a large number OF rail-
road. Industrial and banking corpora
tiona. and would In tho future extend
this policy even further.
While the first differences from this
development may have been somewhat
confused, II was soon generally con-
coded that in the long run It marked
another step In the direction of 81 bet
ter understanding on many points. and
specifically an ending of tho money
trust" agitation.
Eye on Foreign Markets.
Quite naturally the eyes Of Wall
Street were fixed upon the foreign mar
kets- The state of affairs In Paris
engaged attention particularly not only
on this side, but In London and Ber-
lin az we'll.
On the whole. the year-end payments
on the other side went of very smooth
~, especially when the situation Is
confrasted with that year ago A
rather extraordinary depreciation In
the reserves OF the Bank OF England
during the week was noted, but the UNI
favorable effect OF this showing was
neutraiixcd by general realization that
this was due TO the normal movement
OF an enormous holiday trade. and other
seasonal requirements.
At home all the devedopmecmfwyp
At home all the developments in the
-Haeney- xnarpat- testified to -ausPria--
ingly strong banking position. On
Friday the can loan renewal rates was
Ia per cent. and while a maximum
rate Of ten per cent was touched during
the day, this appeared merely due 10
temporary conditions. A continuation
Of the relaxing tendency in the time
money market was a point that was not
lost sight OF.