The Washington times., 1905-04-23
TIME WAS RIPE
FOR A REACTION
Numerous Factors Causing
Last Thursdays Break.
OPTIMISM CARRIED TOO FAR
Abundant Vitality Remains in Market.
Stocks Likely to Recover Nearly
Ali Their Losses.
OPTIMISM CARRIED TOO FAR

\ NEW YORK, April ga critical re-
view of the market history Of the week
reveals the fact that the prospective
effect of favorable occurrences in the
news-field had all been thoroughly dis
counted by the general advance of val
ues during the preceding week, and that
the time was ripe for a reaction. Thus
the actual determination Of the North
ern Securities litigation, followed at
once by the initiation Of the movement
10 distribute the assets and the stock of
\ of the component companies, was ap-
praised as an influencing feature at
rather more than its full value by the
advance of Northern Securities upon
the curb to 1S5ss
Thus. too. the upbuilding Of Amaiga-
mated Copper in recent markets from
about so to S9s&, was evidently adjudged
by the public as more than a fair COM
pensation for the placing of the stock
upon regular dividend basis of 4 per
cent, with The prospect OF an extra d.
vidend When the Anaconda and Parrott
distribution have been effected Similar
ly, ST PauFs meteoric advance to 1S711
based upon that roads excellent pros
poets upon the breaking up Of the North
/ ern Securities Company, was weighed
in the balance of Thursdays reactionary
market and was determined to be too
heavy gain to be justified by any pos
sible, albeit nebuious, redistribution of
traffic
Hardly, indeed, would have been that
/ growth of market sentiment that could
have withstood the unreasonable climat-
ic conditions which obtained on Thurs
dag. BY careful husbandry the tender
) shoots of optimism which were just
breaking into eff1orescence might have
been shielded from the benumbing effect
Of the wintry blast from Albany-the
. unexpected signing by the governor of
: the unjust stock-transfer-tax bill; but
: what plants of hothouse growth could
sustain the frost of triple holiday;
prospective naval engagement; Z per
cent call morey; threatened trouble be-
tween Japan and France and the stud
led attempt of a financial mountebank
to cause panic?
That the sum total of the general
yielding of prices averaged only a little
more than 2 per cent, should under the
circumstances be accepted as an indica-
ton that abundant vitality remains tn
the market, and that as soon as the
course of events during the next few
days has removed these disquieting fac
tors, stocks Will recover at least par
TALLY. Only the stock-transfer-tax will
remain, permanent depressing factor,
until riddled by legal hot shot its un-
\ constitutionality is finally passed upon
and determined in a court of last re-
sort. 1t Is to be seriously regretted that
the governor OF the greatest commercial
State in the Union should have consid-
cred a legitimate pursuit, such as the
stock brokerage business, a proper sub
ject for an experimental measure in
class taxation, measure. alike repug
nant to the Constitution, to the prin
ciples of abstract justice, and to the
overwhelming sentiment Of the people of
a community which pays 80 per cent of
the taxes which support the State GOV
.ernment.
Considered in detail, the transactions
of the FIVE days which comprise the
markets of the week. display uniform,
consistent movement toward lower
prices eliminating in Thursdays violent
break. Last Saturday ushered in a per-
iod of prodt-taking, and the general
: liquidation continued throughout Mon
days market although upon that day
specialized strength was shown by the
Steel stocks, st. Paul, and few other
favored Issues On Tuesday. Northern
Securities broke sixteen points on the
Curb, precipitating significant decline
in Union Pacific and in the general
market.
The cause of this phenomenal weak
ness OF Northern Securities would ap-
+ pear TO have been two-fold-liquidation
of Union Pacific holdings and misun-
derstanding upon the part Of small spec
ulators concerning the necessity of de-
posting their Northen Securities stock
- .. m Wednesdays market wit
messed a partial recovery, though the
tone Of the trading was such as to in
dicate that sentiment continued in an
unsettled state and on Thursday came
the universal slump" as has been
seer.