The Washington herald., 1906-12-10
STOCKS STILL BOOM
Prosperity in Country Keeps
Wall Street Prices Up.
NIPIssING DEAL DISCUSSED
Believed that Powerful Interests
FroSyn on the 'WiId-eat" Mining
schemes, and Their Attitude IS Re-
spOnsibIe for the Guggenheim
Move-RaiIrOads Cry for More Help.

New York, Dec. 9.-Alth0ugh there were
many developments last week of consid-
cradle Importance from a financial point
of view, il was not until toward the close
of the week that any OF them seemed to
influence prices in the stock market in
any degree. There was, of course, no
break in the story Of mercantile and in
dustrial prosperity in every quarter Of
the land the sole complaint heard in
business circles referring to the difficulty
of getting sufficient and efficient labor
OF matters directly affecting the secur-
ity market last week first place must be
accorded. Of course. TO the Presidents
annual message to Congress, and yet the
message was so in accord with previous
antiicpations of its character that it was
utterly without influence as a market
factor
The general expression of opinion heard
of it in Wall Street partook of the rather
faint praise that it was the most cOnserv-
atiye document of the kind ever emanat-
ing from the present Chief Executive. al
though no little disappointment was eX-
pressed that the President did not urge
with greater force the necessity of pass
ing a currency reform bill at the pres
ent session Of Congress. Prospects for
the passage of such a measure are now
admittedly less bright than they. were a
few weeks ago
Fail to Exercise Option.
The sensation caused by the failure of
the powerful Guggenheim interests to ex-
ercise their option to purchase what was
fl effect n controlling interest in Nipis-
sing mines stock belongs really TO last
weeks dealings in the financial district
although the news Of the decision Of the
Messrs. Guggenheim was really made
public in the week preceding. No clear
light has yet been thrown upon this eX-
traordinary affair, and so far as has
been made known both the title 10 the
Nipissing mine and the character of the
mine itself stand as high as ever. There
are some reasons FOR believing that the
throwing over OF the option in question
even though it involved heavy fiHan-
cial loss WAS determined by other CON
siderations .nan those 10 which allusiOn
has been made. It has become evident in
recent We-ss nat the craze for specula-
ton in mining stocks both in the curb
the country was assuming undesirable
proportions, and il is entirely probable
thar financial powers of high rank in the
country were not upon second Thought
anxious 10 openly figure as backing such
g movement.
The advance in the dividends Of many
OF the Vanderbilt railways and the propo-
si,ion Of the Atchisou directors 10 ask
their stockholders to authorize an in
crease in capitalization in the sum Of
nearly Sll0,G00J1 were little regarded, nor
was any concern manifested over the
widening circle OF demands for higher
pay and shorter hours of labor Of many
organizations of laboring men, Such is
the rush Of business throughout the
country that employers would in most
instances gladly pay the increased wages
asked if they could be certain that il
would attract more men to their mills
and mines and would result in getting
the work done that is to be done.
Call Money in Demand.
What finally affected the market in the
closing days of the week was obviously
the unre!ieved pressure upon all specuIa-
tive ventures for the rise in stocks Of
high rates for the use Of money. The
rate of renewals for bank loans Of call
advanced steadily each day during the
week until 80 per cent was asked and
paid in this way on Friday.
Losses Of cash by the local banks dur
Ing the week were such as to result in a
dminution of the reserves Of the local
clearing house institutions in the sum of
500, bringing the banks surplus here
to S6,702.175 below the legal minimum. 1t
is undoubtedly surprising under these cir
cumstances that the security market did
not decline last Friday and Saturday
more than it did; but the market was
bu0yed I'D by a strong impression that
the Secretary of the Treasury would soon
effectively come TO the relief Of the
money situation. The Secretary's offer
made earlier in the week 10 pay in ad-
vance S12,0000O0 OF interest money due On
government bonds in the first two quar-
teTs Of the coming year was held TO be
an extension of very small amount of
help, indeed, since the money thus dis
bursed by the government would be scat
tered all over the country and was not
TO be disbursed anyway until some time
hence.
state of Deadlock Exists.
1t is easy to see. taking a review of the
entire situation in Wall street as it has
existed since the first of September. that
the security market there has been in a
state of deadlock Although fluctuations
in it at times have been active and the
influences bearing upon the market have
been Of varied and at times Of a sensa-
tiOnaI character, nevertheless prices have
remained within very narrow range and
the great majority of small professional
spectators who have tried TO catch the
turns in the market during the period
have found their occupation Improbable.
The case seems to be that on the one
hand buyers Of stocks either for invest
ment or for speculation have been and
are few. on account of the strained
money situation; and, on the other. that
as the floating supply Of stocks in Wall
street has been concentrated in strong
hands or in quarters where arrange
ments were made a long time ago to car
~ them al rates for the use of money
that were not prohibitive. and as also
there has been no liquidation worthy Of
the name because spectators for the de-
cline have been scared by the twisting
processes TO which they have been fire.
quently subjected. and because genuine
holders of stocks saw nothing in the
state of business TO warrant parting
with their securities, the market remain
ed very easily under control and held
within a limited range.
The outlook for the immediate future
is hardly for any change in these re-
spects. whatever may be the case a few
months hence. II is unquesuOnable that
it is the underlying desire of people to