The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-03-19
FINANCIAL AND COMMERCIAL.
SATURDAY. March is.

II IL one Of the most commonplace OF
maxims that any specified movement in
the buslness world cannot run indefinitely
IN one direction; that what goes up for
long time must some time fall; that what
falls must rise again, and that as general
proposition action must be followed by
reaction. This Il particularly true OF the
stock market and yet, strange to say, It Is
in Wall Street that it is most frequ emily
forgotten. prolonged decline in security
prices usually finds the majority OF market
operators, exactly when the decline culmi-
mates, more hopeless and respondent than
at any previous period; and conversely,
a long continued rise when the force behind
il has pushed values up as far as II can WITH
out stopping TO take breath, almost invari-
ably discovers spectators more optimistic
than at any time in the past OF large profits
on the rising side Of the market Immediately
in sight Just as invariably, however,
Il happens that for some cause that IA ap-
parently inexploable and without the
slightest change In the character Of the
general market news, tho current move
ment In security price, revers,' tselt'
the simple reason therefor being either
that at some stage in the upward
movement people who bought stocks
lower down Wilt desire TO make reallza-
tons upon them, though still believing
as firmly a. ever that higher prices
for these stocks will be seen at a later PERIOD
or that II the market has been declining
Il has reached a stage where those VINO
have cash on hand available for purchases
will form the conclusion that prices have
-suflciently discounted for the time being
the unfayorable factors that have been
ruling. Ii il rather clear, looking at the
course Of quotations during the present
week. tfat a realizing movement OF the
kind described has been in progress, which
has no doubt lecn accompanied by reason
ably large operations for the short account.
There is nothing that can he predicated
as a cause for it in any diminution Of general
confidence or In any abatement OF fiattering
reports from every branch OF trade and
industry only, IL seems, a natural desire to
seize profits on too part Of spectators has
exerted itself and the weight Of this selling
has not been counterba.anced by new
buying There is no doubt that there has
been in the larger and more scdAte COM
mission houses in Wall Street NJ Gently IN
inclination to discourage any except mod
ernte ventures for the rise IN the market
on the part Of their customers. Another
matter that has unquestionnb operated
against the market has been tho lack Of
definite information concerning many sup
posed deals and other plans In the rail-
way and industrial world which have been
the subject of such unboundsd Tumor, and
which would, il was declared when thcir
purpose was made known, account for
the sensational rise In prices In many st ocks.
Instead, indeed, Of revelations Of this char
acter, denials as to their truth have pro-
ceeded from high sources, 80 that suspi-
cions have been naturally rife that oven
II some OF these dcnials were of technical
character, there had been n little too hasty
anticipation Of tho favorable effect upon
values Of the schemes in question.
There arc, Il is true, some apprchensions
that higher rates for tho use Of money
may rule during the next few weeks.
8 or per cent call money rate would not
be high and should not, under ordinary
circumstances, have any adverse effect
upon security prices. These rates only
seem high a. compared with the very low
rates that have ruled for so long time,
and some Of tho greatest blooms In the
history OF tho stock market have been
conducted on a firmly 1aintCined 0 per
cent. rate for tho use Of call funds with
time money drawing a rate Of interest
proportionately great The problem Is
raised however, and II Is one that must
be solved by every person interested 40
cording to his own light whether the
elevated price level which now obtains
throughout the market and the record
expansion OF bank loans that has taken
place render tho market moro vulnerable
than 1t would be undcr normal conditions
20 such a rise In the money rate as has
boon referred to- Excellent opinion can lie
had In Wall Street at the moment in sup
port Of both tho affirmative and negative
sides OF this question, In general the
professional and trading clement affirm that
prices ght TO experience further decline,
but those gentlemen have boon very wrong
In their market opinions this year, and
there Is no PROOF now that thry may not still
be in orror Evory ono admits that In spite
Of the weaker tendency prevailing in the
main throughout the week the undertone
Of the market was firm, the floating sup
ply Of stocks was still not notably enlarged
and that Il was a market in which an over
sold equally as we'll as an ovcrbought condi-
ton might speedily arise. Prices to-day fiuc-
tuatcd rather fovorishly, and at tho close
were vary little changed fr m those q
yesterday, the larger number Of stocks per
haps, showing small declines. The opera
tors for tho fall declared OF course that the
failure Of the market to rally after its
severe drop Of yesterday showed that tho
hquidating movement was stil in progress
Tho Ontario and Western and American
Smelling and Refining shares held thoir
exceptional strength, while the effort ID
sell seemed greatest in tho Union Pacific
New York Central and other stocks ia
which recent operations by pools have
supposedly been on a large scale. Tho
weekly bank statement did not perhaps
make as good a showing as had bcon com.
monty looked for, as the loss in cash only
amounted TO 81, 40 900. as against the nearly
sl2.o0oc COO predicted, although, On III,
othaT hand loans decreased only t5.24f, 900
or less than most bankers expected IL
view Of the largo loaning Of funds during
the week by trust companies and privat,
lenders. Tho bank surplus now stand
at SS.i64175, as against a surplus last yea
at this time OF S57, s50.057 and two yea n
ago Of $3.50, 800. Neither comparison car
DO considered especially pleasing.
New YORK stock Exchange sales Mar, Is