The Washington herald., 1906-11-10
WALL STREET NOTES.


traders expressed II. which stiffened the
market at about the end OF the first hour
to-day WAS rumOr that Secretary Shaw
who was on his way from the West.
being due to arrive in Washington at 5
o'clock would at once take up the sub
/ ject of Treasury relief for the money
market
! The particular form of relief which
rumor favored was the retirement Of
some of the per cent bonds natur-
I ing next year, but the possibility of the
direct deposit with the banks OF a good
/ part Of the TTeasury's surplus was also
/ spoken Of
/ In some quarters IL was contended that
I the present high rates would soon work
their own cure by Fastening the return
/ flow OF currency from the country and
/ that Treasury relief would probably have
the effect Of sending gold abroad but as
conditions grow steadily worse up TO the
/ close Of business. the opinion became
strong that the Secretary would be forced
/ 70 act.
I When il became known that Mr.. Ed
wards, OF the Treasury Department was in
town, the Tunnor spread that his presence
here was in connection with a plan to
deposit S25,000.000 with the banks. but
this was denied and the earlier story
1 about retirement OF bonds was again put
into circulation. BY the time the market
closed there was hardly a broker left
/ who did not believe that relief in some
shape would soon be forthcoming.
CAN money loaned as high As Is per
cent but the bulk OF the borrowing was
done considerably lower, and al about 8
per cent most Of the renewals we're made
Quite a few loans were called. including
some which had stood for A very long pc
ROD. and there was so much fear OF a
stTiHGenCy that many brokers sought time
funds, only TO ind a condition Of in
creased f1rTnBess here. the rates for all
dates being higher than at any other
time recently. The known movements Of
currency indicated loss Of cash by the
banks FOR the week Of about g 600 O90. and
based on this and the high rate for mon
ey, brokers. as a rule. expected that the
weekly bank statement would make an
unfavorable showing
On the last occasion when Secretary
Shaw came TO the relief OF the money
situation he did ii in such a way az to
/ force upon Congress the necessity Of tax
ing up the subject Of currency reform.
and the belief is now strongly entertained
that tho coming session will devote a con-
siderable part OF its time 10 this impor-
tant question. The advantage to be de-
rived from the enactment OF a measure
OF this kind more than outweighs any
thing that IS to be appTehended in the
way of discussion OF the trust problem.
and for the first time In years Wall street
looks forward TO the assembling OF Con-
greSs with hopeful expectancy.
Regarding the possibility Of investiga-
ton by the Federal government Of the
alleged trust methods Of certain industrial
corporations which have not so far re-
ceived that kind of attention, a member
Of the stock exchange says:
There is absolutely no cause for un-
easiRess over this matter. The companies
have nothing 10 fear, and therefore their
stockholders nced not feel any concern.
Few In Wall street seem 20 be aware that
an investigation Of the American Tobacco
Company IS In progress. and yet FIVE OF
six men have been al work on its books in
the Fifth avenue Office for months past
Not only has the company interposed
no obstacles, but the officials have done
everything IN their power to facilitate the
work, The investigators have received
every courtesy and all information asked
Tor has not only been freely given but
backed Up hy the necCssaTy. records and
documents
The management understands that the
more complete the investigation is made
the greater viii be its effect in inspiring
confidence. With nothing 10 fear the
company has no hesitation in placing the
facts where they may be used In dispeIl-
ing doubts which may exist IN the public
mind. 50 long as there is no danger o.
their being placed at the disposal Of
competitors.
Astonishment al the absence Of liquida-
tions is perhaps the most prevalent feel
ing among the rank and file OF the hnan-
cial community. That stocks are in
strong hands IS no longer theory-it is
an established certainty.
About 5o.0o0 shares OF Rock Island have
been accumulated by one Of the large
houses. apparently for Amsterdam ac-
count. r. is said the Dutch interests on
Behalf Of which The stock has been accu-
inu!ated have been advised that prospects
for the company are very bright. and
that as the property is now earning some
thing substantial on its common stock, il
IS merely a matter Of policy when pay
mont Of dividends viii be commenced
Early in the year directors suspended
distributions on the preferred stock 50
that al available earnings might be used
for improvements. and while there is uc
reason 20 believe that a resumption win
soon be authorized. the holders Of the
common have the consolation OF knowing
the present policy is greatly in their Ia
vor. Earnings which instead OF being
paid out in dividends on the preferred
are put back into the property 60 20 in
crease the intrinsic value Of The common
stock.
II the buying of Northern Pacific was rs
good ss it looked. no fault could be found
with It.
Always conspicuous. whether on the
bull or the bear side. Readings perform
aace yesterday was IN keeping with its
past records. The stock was the weak
est on the Est when the general marke
was heavy In the first hour. but there
after became one OF the very stro1ges
features. The change of form was instan-
taneous-a reveral Of the laundry machine
with remarkable results. It could not be
said. however. that a large following was
secured. although there is some reason to
believe that the present movement toward
higher prices has more substantial back
ing than any in the past few months
Although for weeks there had been
talk about a Pullman melon, the actual
announcement Of a = per, cent stock divi-
dend' created some surprise. With some
thing of the same kind Of skepticism
which had been manifested in regard 10
Pennsylvania previous to the declaration
OF the increased dividend on that stock.
most brokers had received the reports
concerning Pullman, but as in the latter
case there was no short interest the