The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-12-02
GOSSIP OF WALL STREET.

In some conservative quarters the view is
expressed that the tightness In money Is not an
unmixed evil at this time since il serves as a
strong object lesson TO Congress on the need
Of currency reform, which il is believed the
President will urge in his message. The re-
duCtion in the surplus reserve. which Is again
down to near the vanishing point. discourages
expectation that the banks will be inclined to
lend freely, and as IL has been frequently
shown that when the item gets as low as at
present IL Is apt to disa ppesr altogether before
an Improvement sets in there Is a strong
feeling that the condition Of the associated
banks will become worse before II becomes
better. When the surplus disappears and the
banks are forced to retire from the money
market the necessities Of borrowers attract
funds from every quarter and the situation
automatically rights itself. .
Agood many Of the traders were away yes
terday. and most OF those in attendance were
disinclined to commit themselves far on either
side Of the market. their apprehensions re-
Carding the Presidents message preventing
them from buying. while the unEnistakable
strength of the market discouraged them
from making short sales. or public interest
there was practically none. and as the. pro-
fessiOnals hardly knew what to do a very un-
interesting market was the natural result.
As usual'in such circumstances there were
movements In a few specialties like National
Biscuit and Virginia Coal and Coke, both of
which made new high records. but no follow
ing Of consequence was obtained for either.
There was a feeling that in the early part OF
the coming week, at least. money would rule
strong, but the Weakness In exchange gave
rise to some slight hopes of a possible re-
sumption Of the gold import movement.
While there was a revival OF the rumdrs
about buying for control in connection with
the continued advance in Atchison the opin-
ion expressed in conservative quarters was
that there was nothing mysterious In the
rise. as the reason for II was easily found In
the earnings OF the road. Keeping in mind
the remarkable showing in the October state
ment, published a few days ago. 10 was clearly
case of cause and effect and the only reason
why the latter did not more quickly follow
the former was that the Street was more con-
cerned AT the time about the money situation
and the meeting OF Congress than about con.
siderations Of intrinsic value.
Next to the movement in Atchison the rise
In Chesapeake and Ohio was the most notable
feature OF the days trading. For the buy
ing Of Chesapeake and Ohio no very definite
reason was given, but II Ia worthy OF note
that the stock has been selling In the past
two or three weeks boIc- me average price
Of the year, which with the present upward
movement suggests that on the talk OF an
increase in the dividend rate early In the fall
insiders took profits but subsequently bought
back on the decline which followed the an
nouncement OF the declaration OF the usual
per cent. yearly rate. The annual report
showed that in the year ended June 80 last
the compan earned fully 2 per cent. on its
stock, and as earning power rather than
what the directors at any one time may feel
justified in distributing TO stockholders de-
termines value In the long run many conserva-
tive interests class Chesapeake and Ohio
among the issues that are not dear at pre-
vailins prices.
As Chesapeake and Ohio possesses earning
power far above what the directors have
chosen to distribute in divid ends the inference
il that the need OF Improvement to the prop
erty IL responsible for the policy OF con-
servatism now in force regarding the size
~ the disbursements TO stockholde But
there il a more speedy way Of providing the
means for improving the property than by
devotinR earnings to that purpose. Inc
money situation, however. has not oeen
favorable to the raising OF new capltal. DuI
in view OF the growth OF business and the
nee essity OF adequately providing for 10 the
.,mlany can hardly AFFORD to temporize. 80
re probability is that a plan TO finance the
'oompany's Improvement projects will be per-
fected before long. The announcement OF
such a plan would be regarded as tantamount
tn an assurance that stockholders would IN
future receive an enlarged participation IN
the company's prosperity and that instead
Of having to wait until next fall Tor another
DIVIDEND one would be declared In the spring.
marking the beginning OF semi-snnual dis
tributions
Broke rs who have argued that the inaction
of Amalgamated Copper IN the past rev weeks
has been due 10 a desire on the part OF stand
ard MI lnNawnakx tn discourage 4DOcuiHtlOn
In mining stocks on the curb now say they
can see evidence OF a renewal Of the restraint
rat upon the stock Of The big companies
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