The Washington times., 1902-10-16
WAL | STREET HOPEFUL
OF STRIKE SETTLEMENT
Stocks, Depressed at Open
ing, Rally Quickly, and at
Close of Market Show
Decided Gains.
Much Diversity of Opinion
Exists as tc Wisdom of
Bond Purchases at the
Present Time.

NEW YORK, Oct. 15.-The stock mar
ket today was dull. but persistentiy
strong. Depressed at the opening by
much lower quotations from London,
prices rallied quickly. held firmly and
at the close showed good gains over the
final figures of yesterday.
There was no feature to the trading.
St. Paul was the strongest stock, sell
ing up two points on what was declared
to be good buying. Louisville and
Nashville and Norfolk and Western COM
mon were also active at higher prices.
the strength in the last named stock
being attributed to the long standing
expectation that its dividend rate will
be raised from to 3 per cent at the
approaching meeting of the directors.
An Exception.
The Atchison stocks were an excep-
tion to the general movement, barely
retaining the gain of yesterday. ster-
ling exchange was very weak. dropping
of merchandise to point which might.
under ordinary circumstances, fore
shadow gold imports.
Call money rates displayed an easier
tendency, holding most of the day under
per cent.
There was no abatement. however, In
the stiffness of the rates for loans for
any considerable length of time. Gener-
ally there was better feeling in COM
mission houses and disposition to buy
stocks for the rise. Heads OF these
houses. however, were still exceedingly
cautious. demanding large margins and
discouraging miscellaneous purchases.
The greater cheerfulness of specu-
lators. while encouraged by the ease in
money rates and to less extent by
the drop in foreign exchange. was chiefly
due to the belief that the negotiations
result favorably, and to the hope that
the Treasury would purchase a consid-
cradle quantity of Government bonds
soon to be offered.
Soon to Buy Bonds.
The impression is strong throughout
the speculative community that an an
nouncement will soon be made concern
ing the successful result of the efforts
to sell bonds to the Treasury. These ef-
forts have been, it is understood, those
of few private banking houses to col
lect as large a quantity as possible of
the Government per cent bonds falling
due in 1925. The efforts have not been
concluded, and whatever the total
amount collected may be, it can be safe
ly stated that it will be less than the
$3.50 0O0, 600 that the street talked of yes
terdav.
1t is, of course, we'll known that con-
siderable diversity of opinion exists
among bankers and students of the
financial situation as TO the wisdom of
bond purchases by the Government at
this time.
At the conference recently held in
this city by Secretary Shaw with repre-
sentatfves of the banking community
some of the most eminent bankers pres
ent, representing the largest interests,
advised the Secretary against bond pur-
chases, although they admitted that
such an act would relieve the money
market in the quickest way
Objections Stated.
Their objections were that such action
would simply restimulate the specula-
ton, whose excesses had caused all the
trouble, and that the relief afforded by
the Treasury ought to come so carefully
and moderately that the business COM
munity, rather than stock gamblers,
would experience benefit from it.
The Secretary declared at this con-
ference, and has since several times re-
peated the declaration. that the proper
remedy for the situation lay in an in
crease of circulation by the banks, and |
that purchases of bonds by the Govern |
ment as narrowing the basis for this |
circulation were unwise
So the plan finally adopted by Secre- |
tary Shaw was not to buy bonds. save |
in case Of absolute necessity, but to ex-
tend the assistance OF the Treasury in |
every way toward increasing the bank |
and the deposit of public |
money in the national banking institu-
tions
Absorption of Money.
A curious popular misaprehension
continues concerning the absorption OF
money into the Treasury. 1t was point
ed out at the end of last month that the
net balance held in the Treasury vault
available for circulation was only $75,-
Isl 514 70