The Washington times., 1902-10-18
Secretary Shaw's Action Re-
lieves Tension, and With
Settlement of Strike Puts
Neville in nEvery Specula-
tive Pool.
Soft Coal Road Shares En-
joy Prosperity = Profit
Taking in Norfolk and
Western-Money Easier.

NEW YORK, Oct. 1.-THE Secretary
of the Treasury announced at noon today
that he had purchased S., 900, 900 worth OF
the per cent Government bonds of 1926
at 13s, and that he would buy, if offered
to him before the close of business next
Monday, a larger quantity of the same
issue al 1871, with proper abatement OF
interest. 1t is known that there will be
Immediately offered to the Treasury un-
der this invitation by the syndicate con-
cerned in the transaction and possibly
by individual parties, bonds to the
amount of s15.O0O.Oo0, so that the net re-
suit of the Treasury's action will be the
release of s27.00O.o0O now held in the
Treasury's Golfers.
1t is understood that the entire coun-
try was ransacked for these bonds, and
that payment for them will thus, event.
ually. be widely distributed. But as the
New York money market is at present,
and will doubtless continue to be for
some time to come. the highest in the
land, it is probable that practically all
of the money djsbursed by the Treasury
under the bond purchases will be left at
this center. available for the needs of
business and the speculative commu-
nifty,
IL would be idle to deny that there are
two opinions held ir the financial COM
munity concerning the wisdom of these
bond purchases by Secretary Shaw. 1t
is maintained, on the one side. that the
financial strain which recently prevailed
was purely and simply Wall Street af-
fair, not affecting general or legitimate
business in the slightest, and due solely
to the excesses of speculation.
The Tension Relieved.
1t must be admitted, however, that
the immediate effect of the Secretary's
aotion. taken in conjunction with the
ending of the coal strike. has been a
rapid bidding up of all prices on the
stock exchange. and the inspiration with
new life of every speculative pool So
far as can be seen, this bidding up of
prices and the activity of these pools
are likely to continue rather than cease.
The former tension of the situation
has been SO far relieved that at the
close of business today the market had
regained much more than half of the
entire fall from the highest prices re-
corded in the midsummer speculation.
Practically all the stocks on the list
We're equally strong. The greatest rise
took place in St. Paul, which sold up to
ls4. This stock has advanced IL points
without reaction of one point since
last Monday and the belief is entertained
in many quarters that there are in
huences favorably affecting the properly
beyond any that have hitherto been
made known
Proft-Taking Appears.
Norfolk and Western, which was
strong yesterday. displayed profit-taking
today. but the shares of the Baltimore
and Ohio and the other soft coal roads |
were strong, while a net gain of nearly /
two points was made in Pennsylvania.
The sentiment of acute observers at
the close of the day was that while in |
view of the rapid pace of the recent ad-
vance slight reaction was in order.
the speculative spirit was so ardent that
the general outlook was for higher
prices.
One significant fact was that money
Tor four months, which had previously
been unobtainable, save on prohibitiye
terms, was offered in quantity at 6 per
cent