Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-06-25
A Speculative Leadership.

A speculative leadership for an advance
in prices has asserted itself in the stock
market this week and has moved prices
upward with aggressiveness and determine
ton The leadership is evidently in the
hands of practiced and skilful operators
supplied with abundant means and organ
ICED to attempt an extensive speculative
campaign. Large orders have been dis
trihuted in concentrated form and give eVl"
dence of coming from an organized source
The advance in prices has encountered
an important volume of realizing sales, and
these have rather increased as the advance
extended. But offerings were absorbed
with apparent confidence. and the holiness
manifested by the buying has impressed OBJ
servers with the power and resources of the
conductors of the campaign. Speculative
sentiment has been the more impressed by
the aggressiveness OF the leadership owing
to The fact that some of the immediate
news of the week has seemed unfavorable
to the movement and has been ignored.
An Impressive Condition.
One of the most impressive conditions
prompting the attempt TO lift prices was
the resistance shown for a considerable
time to attacks upon the market. The
declines failed to dislodge any important
amount of margined holdings and the con-
viction was forced that the market was
sold out TO a large extent.
Ii was believed in fact, that an over-sold
condition existed and that any considerable
rise In prices would place extensive
short interest in a vulnerable position.
Present conditions in business and industry
are regarded as satisfactory and it was
argued that the possible hazards of the
future and the dlsquiet aroused by some
OF the unsavory Incidents in the financial
world had been allowed to induce an I'M
warranted and unduly prolonged conserva-
tism in the attitude toward the securities
market. Such seems to be the line of rea-
soning on the part of the men who en-
parked this week in a speculation for the
reason and who met with an encouraging
degree of success.
The Buyers Calculations.
The buyers of stocks have counted also
upon the effect of the demand for invest
ment to follow from the disbursement of
semi-annual profits in July. The money
market shows evidence of extreme ease and
any apprehension of a squeeze in money to
be caused by the arrangements for the July
disbursements, have been allayed
There seems likelihood OF even a tenn
porary arrangement of the money market.
There Is large accumulation taking place
In New York in which re-transfers from
San Francisco of funds sent there a few
weeks ago play a part as well as consider
able disbursements by the Sub-treasury on
nScaI operations. Foreign money markets
also have been easy and ready recourse has
been had to that source by New York Dor
rowers. az shown by the appearance of
bar kers' finance bills in the exchange mar
ket. II was argued that after the July set
truents Were concluded there would likely
be pressure of capital for investment that
would take present aCCumula lions of securi-
Ties off the hands OF buyers. There has
been rather 4 conspicuous absence, how
ever. OF any preliminary investment de-
rcand in the bond market which is the de-
pertinent of the market where ii usually
makes itself felt.
Iron and Steel Outlook
The stock market view of the iron and
steel outlook has become more confident
and a more cheerful tone is reported also
by trade authorities as to the prospect for
revival in the trade. The immediate condi-
ton, however is one of continued deadlock
between buyers and sellers of pig iron.
The weeks grain markets have shown
strength and have had a share of crop
scares. The same is true of the cotton mar
ket- Opinion TN the stock market, however,
seems to be content with the dimensions of
The crops promised on the basis of condi-
items now existing and the usual dangers
OF harm In the later stages of the crops
have been ignored. Traffic officials of the
granger railroads have contributed mate
rally to the confident feeling over the
crops by their hopeful expressions of the
prospects for future traffic.
The weeks returns of railroad earnings
have also made a good showing. The action
of the Reading directors in increasing the
uiFldehd rate Dy raising the Semi-annual
dividend on the common stock from y to
2 per cent has had the effect of eniivening
the hopes of holders of other stocks of re-
ceiving a larger share OF the enhanced
profits being realized by the railroads
Dividends Affected Railway Stocks.
This influence affected the stocks of other
railroads affiliated with the Reading
through Pennsylvania control The second
quarterly dividend at 1 per cent declared
by the Tennessee Coal and Iron Company
was regarded as fixing the rate and was
helpful to the steel industrials.
The incubus OF the Equitable Life affair
has not been entirely removed from the
market, but it was ignored in the prevailing
hopeful temper of the speculation. was