Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-11-05
Wheat Markets the Medium.

1t Is this economic side of the future nat
urally with which the worlds markets con-
Germ themselves. and the most direct re-
Election in our own affairs has been through
the wheat markets. The price of wheat
was inclined to yield with the promises
OF the opening OF the transportation In
Russia and the release OF grain shipments
for export.
The effect on markets for securities and
money was transmitted for the most part
through the Paris markets. owing to the
enormous holdings of French capitalists In
Russian government and Industrial securi-
ties.
The manifesto by the Emperor of Rus
STA abdicating autocratIc powers caused
quick relaxation in the tension of foreign
money markets, owing TO the belief that
the precautionary piling up of bank re-
serves In Paris would be discontinued
The rise in sterling exchange at Paris
was the most immediate indication of this
tendency, and was accompanied by a run
ming on OF foreign exchange IN New York
rms had the effect of wiping out the mar
gin of proht on shipments of gold from
New York 10 Paris. and averted the cx-
pected large outward movement of gold
A Stimulating Factor.
This was an especially stimulating factor
on speculation here. owing to the impor-
lance still attached to the money outlook
The later recovery in exchange however
and renewed decline in the sterling rate at
Paris bringing up the question of gold ex
ports again was not of much effect in
checking the speculative activity which had
developed In the stock market The re-
covery in exchange was attributed to the
beginning OF remittances OF tho Jan,roso
funds on deposit in New York as uucb OK
10 the continued uncertainty over the ont
come of the agitation I'm Russia
The expansion of dealings In tba sto,.
market was largely due to furious specnla-
tive movements in number of specialties
of various. grades, both among RAILROADS
and industrlals. which had some disturb
ing effect in It's most violent stages esne-
cially in Reading. The volatile rise in tba.
stock was not clearly explained and wa,
attributed variously 10 actual DEVELOPMENTS
regarding the property and to the diff
Culties OF a distressed short interest The
companion movement In other stocks espe-
clally In Lehigh Valley In Philadelphia, was
the basis for surmises of further projects
OF consolidation of anthracite interests
reported statement by the head of the
mine workers against the probability of a
strike next spring
The Reading Movement.
The sympathetic effect OF the Reading
movement on the general list was confused
by the varying of these explanations of II
Wits that or a threatened corner In the
stock. A squeeze of shorts involve losses
10 that element in the process which neces-
states speculative liquidation at other
points In the market and Wall street has
100 vivid recollection or thg disastrous
consequences OF the Northern Pacific cor
ner IN May 1901, not to be very sensitive
10 any suggestions of such an outcome
me working out of a speculative corner
also involves after difficulties for the or
sanizers themselves in the disposition of a
residue OF holdings which have to he ac-
cumulatcd in maintaining the corner
suspicion OF such an operation therefore
causes feverish tone TO speculation on ali
accounts. 49,
The weeks movements have carried not
only Reading. but American Smeltine
American Locomotive and some other stocks
TO the highest prices of record and rumors
OF mergers and combinations have been
the current explanation OF these excited
movements.
Money Rates Closer.
Money rates have worked closer during
the week, but the effect on the stock mar
ket was slight up to Friday afternoon.
The conditions of general prosperity in
the country have undergone no alteration
and continue to underiay the strength of
the stock market.
The statement Of earnings of the United