Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-05-07
Finance and rade in
Markets Of the World
PRICES SLIPPED BACK
MORE FROM EXHAUSTION OF DE-
MAND THAN PRESSURE TO SELL.
Union Pacific and st. Paul Continued
NEUTRALITY-SUSPICIOUS. Pacific Ad-
vance Not Helpful.


vance Not Helpful.
NEW YORK, May 6.-To-day's dull and
sagging stock market was in accordance
with general expectation and was corrobo-
rative of the view that yesterdays buying
largely represented profit-taking by the
shorts. With this demand from the short
interest satisfied prices slipped back today
more from the exhaustion of the demand
than from any renewal of active pressure to
sell. The superstition Is general that a per-
iod of quiet speculation is before the
market in the absence of important new
developments, with the possibility of some
further speculative liquidation yet to be
concluded. So many illusions have been dis
sipated and corresponding losses and disap-
pointments suffered by those who accepted
unwarranted rumors in good faith that an
early renewal of speculative confidence Is
not counted upon What adds to this prob
ability Is the approach OF the season of
uncertainty and vicissitudes for the coun-
Jrys crops and the normal unsettling eff
sect OF this period upon business In gen.
eral
Union Pacific and ST Paul continued their
leadership of the market today on the re-
action as on the recovery. There was come
temporary show of strength in other quar-
tiers, but it not sustained Unofficial
reports, which were denied, that Lake Shore
had acquired some blocks of Erie gave a
firm tone to those stocks. Yesterdays
jump in Peoples Gas was found this morn
ing to have been due to a false report as to
the proposed gas legislation and that stock
dropped back.
The advance in Northern Pacific was de-
trimental to the market rather than help
full The bank statement conformed so
closely to the forecasts that it's publica ton
n n 6ivJS fS NJ vi
counts Sterling exchange advanced a few
points and there is discussion among for
elgn bankers Of the possibility of outgo
of gold to France.
But the price of gold in London was lower
and sterling exchange advanced at Paris,
thus indicating a relaxation of the demand
for gold by Paris upon London. The market
closed weak and dull.
Total sales of bonds, par value, 81 OPS 900
+ Uncertainty Of Sentiment.
The unsettled movements in the stock
market this week have reflected much I'M
certainty Of sentiment. The liquidation
which swept the market at the close of last
week seemed to have spent its force ON
Monday, after prices had touched lower fig
ures than Saturday. Forcibie measures
were adopted also to support prices and
check the declining tendency, which was
itself forcing large selling by the exhaus-
ton of margins and dislodging of stock
giving the depression cumulative effect the
further 1t proceeded
The success achieved in stopping the de-
cline drove short interest to cover and
there was substantial rally AS was ex-
pected, this rally brought out offerings that
had been bought at the decline simply for
the purpose of holding the market. But the
hope was entertained that the worst of the
liquidation was over and that the market
was TO settle down into duh trading and
sluggish movement such as invites the slow
but effective investment absorption which
takes stocks out of the market instead of
the perpetual shutting from one set of
spectators to another which characterizes
boom periods But liquidation was re-
newed IN force, and ii became manifest that
large amounts which had been withheld
from the market during the period of de-
moralization remained to be liquidate ted
The process forced prices lower than dur
ing the preceding week and disturbed hold
ings on margins, which had been unimpair-
ed by the previous decline. Opinions in the
financial center of general conditions and
of the outlook were colored to some extent
by the movement of securities prices but
principal importance was attached to the
unsound speculative conditions which had
been built up in the stock market itself.
Discredited Assumptions.
Many development went to discredit the
unwarranted assumptions on which much of
the furious speculation of the past has been
based. The conviction gained ground espe-
cially that the dissolution of the Northern
Securities Company left the dispute aroused
by the Northern Pacific's requirement of
the Burlington still open. Conflicting ru-
mors have prevented solution of doubts
and fears whether efforts to compromise
this dispute were not proving futile, leav-
ing open the danger of measure of hostility
and reprisal In the railroad policy of the
northwest The current conjecture on this
topic is generally based on the assumption
that 1t is the Union Pacific power which
he 80 ~
conditions
For this reason the approach of the date
for the special stockholders meeting of that
company TO act on the proposed issue of
SlO0,OO0,O50 additional preferred stock was
made the occasion for many reports of a
conflict in the company owing TO new in
teres.s acquired in the open market and of
possible hostile purposes, for which the new
capital may be designed. Belief has been
completely abandoned in the old rumor that
combination was projected between the
Union Pacific, the Chicago and Northwest
ern and the New York Central and sub
stantial arguments against such a depart
ure from long-estabiished policy in the
grouping of the country's railroad systems
are given consideration which was en-
tireiy neglected during the time that this
project was making Its appeal to specula-
tive imagination.
Shaped Opinion.
The record in the Lake Shores annual re-
ings of Reading stock, with the intimation
that Baltimore and Ohio had acted on par
allel lines, was accepted a well-informed
and capable estimate of the attractiveness
of prevailing prices for purposes of profit
able marketing that was highly influential
in shaping opinion throughout the financial
world. In considering the business and
financial situation at large the question is
canvassed of the extent to which the fac
tors which have disturbed confidence in the
stock market may affect business generally
Attention is alert to detect any indication
that confidence Is impaired in the further
expansion of industry, a condition which
would be expected to lead quickly to a
contraction of demand for future require
ments. The decline in the price of copper
is considered and some slackening of de-
mand in portions of the iron and steel trade
is admitted, where also the prodigious pro-
duction shows evidence of outstrpping the
consumptive demand Railroad traffic Off
Gals couple their confident expressions with
pointing out that the record tonnage of the
March business is no longer offering the
railroads.