Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-04-09
Effective Market Support.

Inc prospect OF per cent dividend claims
on S1OO,000.0O0 of preferred stock ahead of
the common stock seemed formidable and
shook the stability of the price of the COM
mon shares, but powerful and effective mar
ket support was offered and the price sus-
tanned.
The effect was to revive the circulation of
merger and combination rumors and TO con-
firm the confidence of operators in the stock
that the stock issue was designed to perfect
some great plan of amalgamation in the
railroad map. The determined withholding
of all official information of the proposed
use for the new resources was an Indictment
TO conjecture rather than a damper to con-
hdence, and this proved an important infu-
ence on the renewed outbreak of speculative
excitement.
The favorite superstition for some time
has been that Union Pacific contemplated
the acquisition of Chicago and Northwest
ern and New York Central for the forma-
ton of an unbroken system from ocean TO
ocean Other supposed acquisitions cover
ed by the weeks busy rumors have includ-
ed the, Atchison the st. Paul or the recov-
cry OF the Northern Pacific. control of
which was lost as consequence of the
Northern Securities decision.
Northern Securities Influence.
The incidental declaration in the Supreme
Court decision that the delivery of the con-
troll of Northern Pacific to the Union Pa
cific interest would directly contravene the
object of the Sherman law and the purposes
or the government suit against the North
ern Securities Company received only cas-
ual attention in the progress of the excited
speculation.
The sudden jump of United States Steel
preferred 10 above Its previous record
price. made in the course of the market
operations incident to the Rotation of the
securities or the new corporation in 1Sj1,
was or decisive influence on market senti-
ment. Reports from all quarters of the
steel and iron industry for some time have
pointed TO volume of orders unprecedent-
ed In the trade The sluggish response of
the United States Steel stocks to a pros
perity In the trade never before equaled
has been the cause of distrust of the rela-
lively high level of other securities.
The new movement serves to rectify this
disparity TO some extent, and its influence
on sentiment is not lessened by the evident
signs of widespread market organization
TO bring II about Misgivings over the
money outlook seem to have receded into
early In the week, however. They were
based on the comparatively low level of
bank reserves here at present
Condition of National Banks.
The condition of national banks through
out the country as of March IA, reported to
tho controller also revealed a heavy vol
ume OF outstanding loans, in full measure
with the vast increase in deposits. The
great activity of trade in all lines points
to a large demand for funds. But conf
dence in the soundness of conditions and of
credits seems unimpaired, and with conf
= dence undisturbed the vast expansion of
credits is felt to be safe. The constant
additions to the new capital issues for alb
sorption seem to be viewed with equal
equanimity.
The price of foreign exchange during the
week has showed the flow of remittances
away from New York, but without disturb
ing the signs of confidence in the money
outlook, and the call by the Treasury De-
partment for surrender of ST 100000 of
government deposits by the banks In equal
fnstallments on May 10 and July failed to
cause a ripple of apprehension. Trade ac-
t!vity. the great movement of cotton, the
favorable condition of winter wheat and
expanding railroad earnings prove potent
considerations with stock operators. and the
supplementary effect of constant intima-
tons OF great corporation combinations