Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-05-21

Depressing influences have accumulated
on the stock market this week. resulting In
a sharp break in prices after the middle
OF the week. In the early part OF the week
the movement of prices was very uncertain
and fiuctudted constantly. with occasional
show of considerable strength The market
was almost wholly professional and mar
row the total sales for a day falling
Tuesday for the lowest of the year The
weekly review OF iron and steel published
on Wednesday by the leading trade au-
thority. Ceutered attention ON the lull in
that trade and that was the principal in
fiuenCe in the break in prices which came
afterwards.
The response of the stock market to con-
ditions in the iron and steel trade emDha-
sizes once more the Importance attached to
that trade as an index of the industrial
and business outlook al large. The strong
effect produced is due to inference as to
what the future in the trade may be rather
than to actual conditions reported. The
arrest OF the demand for pig iron in itself
might signify little, as the accumulation
of stocks, which has commenced, is yet SO
small. in spite Of the prodigious output that
a few days OF the present rate of consump
tiun would serve to exhaust stocks. But
distTust IS felt of the consumptive power,
owing to the fear that much of the demand
for future requirements, which has been
very confident while the market remained
stable. may be Curtailed with the prospect
of yielding prices. Delayed building opera
tons on account Of weather conditions and
pause in demand for railroad materials,
pending the formation of the harvests, are
given as causes of the lull in iron and steel,
which il is hoped may prove temporary,
but speculative sentiment has taken alarm
and has refused 10 be treasured.
contributory cause TO the depression
OF the iron and steel stocks the char
acter OF the discussion in stock market
circles on the announced determination of
the administration to purchase material for
the Panama canal abroad, where that can
l. done oh nr.Ity how In no GOD
States. 1t was argued that this position
was calculated to precipitate the whole
question of tariff revision, especially as it
bears on iron and steel duties, and was
liable to be made a supplement to the agi-
tation for government control of railroad
rates and of corporations in general. Sc
curity holders have shown a sensitive feel
ing on this subject for some time and the
prospect of an approaching legislative cam
paign is not viewed with equanimity.
The northwestern railroad situation has
lost none of its power to influence specu-
lative sentiment, and new outcropping of
the multitude of rumors of deals in that
field was made the instrument of the eff
forts to start an upward movement of prices
early in the week. The action of the North
eTn Pacific stockholders at their long-de-
layed annual meeting In dropping from the
directorate all the representatives of the
Hartman Interest was given a very I'M
favorable Interpretation. The conviction re-
mains strong that numerous plans have
b'Ch uliutI ulSCuSSloH looking 10 the MAIN
tehance OF harmony, but in the absence of
any reliable information of these plans or
any authoritative admissions that they have
become effective, the Northern Pacific cleo
ton had the effect of diSconcertinR specn
latiVe sentiment
Money market affairs have PLAYED M nm
parent part of the weeks unsettlement In
terest rates have been easy and supples
seem abundant.
The large Withdrawals on account of the
The large Withdrawals on account of the
return of government deposits have had not
government deposits have had not the
slightest effect. Some very large financial
transactions have been In progress at the
same time. notably the calling OF under
writing subscriptions to the Pennsylvania
convertible bond issue to the amount of SO
Ter cent of the Sl0O,OOO,000 issue Next
week, on May %, subscriptions are payable
to the extent of $50 600 600 to the $4,000 900
OF the Japanese loan allotted to this coun-
try. The conservation of the ease of the
money market during the progress of these
transactions would be desired by financial
powers interested. This may go to explain
the belief prevalent in the stock market
that the great banking and financial powers
were averse TO any extended speculation
In the stock market at this time. Weather
conditions for the crops has not been con-
sidered favorable, and the weakness of
stocks late In the week was made the oc-
casOn for something like a crop scare.
Foreign policies have not been without in
fuenCe our stock market, and the re-
port, afterward denied. of the occupation
of a Chinese port by German troops was the
occasion of selling here for foreign account.
The coming naval battle is also an uncer-
tainty In its effects.
Bonds have been dull and have developed