Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-08-05
SELLING PREDOMINANT
An Animated Speculation Throughout
the Week
OVER THE U. S. STEEL DIVIDEND
Unsettlements of Foreign Markets by
Russian Disorders Shut Off London
-subtreasury Operations.

fault again today. Discrepancies were
partly due to the fact that new member
of the clearing house was included In the
showing for the first time today, thus dis
arranging the comparison OF the averages
The estimates of the known movement of
money yesterday seem not to have made
sufficient allowance, either. for the effect
of the redeposit of treasury funds against
payment of Panama bond subscriptions the
loss in cash, therefore, instead of rising to
over 81, 000. 900, was indicated. is less
than three quarters of a million dollars. But
the more favorable showing than was ex-
pected in this item was neutralized by the
heavy loan expansion of s1s.77s. 800. which
served to increase the reserve requirement
to such an extent as to leave the surplus
impaired to the extent of "a. 769, 800.
Stocks were under pressure partly ac-
count Of the bank showing. no doubt. Rates
for time loans were also appreciably higher
and smaller supplies were said to be offer
ing. There was also a firm tone and
sharp advance In foreign exchange rates.
IN spite OF the holiday In London, which Is
TO be extended until Tuesday. The stock
market was more influenced. however, by
the evidence offered by yesterdays opera
tons that stocks were being distributed in
speculative liquidation.
The feeling out of recent speculative IA
yorites was continued today, and only mo-
mentary support was offered the market
Immediately after the opening. BY the
time prices were restored to last night 8
level the force of the selling again became
Predominant and continued almost unin-
terrupted to the closing, which was easy
and at declined running to from one to over
two points for many OF the prominent
stocks.
Total sales of bonds. par value, s427 900.
An Animated Speculation.
Early In the week there was sood deal
of unsettlement and irreguiarity In the
market following the rise OF the previous
week: but an animated speculation broke
out after the action of the directors of the
United States Steel Corporation in declaring
dividend on the common stock, and prices
were swept to a higher level throughout.
The dealings were unevenly distributed and
n greatly disporportionate interest was
shown in a group OF stocks influenced by
rumors of important projects pending.
which remained unauthorized by official
sanction.
The speculation was based upon the gen.
eral conviction that powerful capitalists
had entered upon operations in the stock
market and that concerted policy had
been adopted in favor OF awakening the
dormant public interest in the securities
market. The motive for such a policy Is
sufficiently obvious in the well-kuown con-
dition of the market for new issues OF
bonds and stocks which have become leth-
argic and congested, with enormous issues
in the hands OF bankers and syndicates and
with prospect of additional issues to come
indicated by the known needs of great cor
porations for additional capital to carry
out projects already entered upon.
The entire lack of any sign OF initiative
or countenance for a speculative movement
on the part of influential financial leaders
up TO the present time has left the market
nnrssponsiye to the manpulatve tactics of
professional operators in attempts to start
q speculate campaign With the success
I've return of various capitalists from Euro
mean vacations and with the acton OF
stocks in which they were interested there
has been gathering impression mat tnelr
opinion was in favor of higher prices TOT
stocks. This opinion Is inferred not onIy
from the market movement of special stocks
but from the action of corporation director
ships. especially in the case Of the United
States Steel Corporation.
The Steel Dividend.
The dividend the Steel stock Is &C
copied as an earnest Of the confidence OF
the directors of the maintenance of the
present prosperous conditions In the indus
try OF which they are the chief representa-
tives 1t was also regarded as g formula
ton OF a policy of larger disbursements
TO stockholders in general. In contrast Win
the marked conservatism which has ruieu
in the accumulation OF large treasury sur
pulses, which has made dividend distrihu-
tons but q small proportion of the APP
parent annual earning power or the STOCKS.
IL has been evident for some time that TINS
rOiIcy has caused the growth of doubt
in the minds of the investment public OF
the confidence of corporation manages III
the perrnanence of the earning power or
their companies.
There have been many evidences of tus-
satisfaction of stockholders with ;he small
proportion OF earnings annually disocrsed,
and organized movements and eyen legal
processes have been resorted to for the
purpose of enforcing more liberal disburse-
iuSnts The high interest rates ruling In
the market also make the smaller invest
Ineut return shown by securities unattrect-
I've. Discussion has been very active In
the financial world OF the probable issue
OF these discrepancies. the adjustment Of
ferinr the alternative of a fall IN prices
81 securities or an advance In The amount
OF the annual distribution.
A Spirit of Confidence.
The spirit OF confidence engineered by
the promise OF large dividend returns has
, thrown into the background some of the
considerations which have been a restraint
upon speculation. but they have not passed
wholly out OF consideration.
Money on call has been seasonably easy.
but the large loan increase by the banks
last week suggested the requirements OF
r.