The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-03-04
GOSSIP OF WALL STREET.

VI nv III NhO bohhhV
did-not bring a larger response in the way
Of advances In security prices produced
widely different explanations. Perhaps that
most commonly heard was that $40, ooo, 600
was entirely too little to cure the Ills OF the
money situation and that by arousing false
hopes the steps taken would only aggravate
the trouble which they were intended to
alleviate, In a few conservative quarters
the opinion was expressed that the talk about
the lnadequacy Of the measure and Its posi-
BILE effect on public sentiment was the out
come Of the fact that the market had become
largely professional. and that the professionals
were for the most part out OF stock or even
absolutely committed to the bear side. AZ
the Secretary's action took the professionals
by surprise IL was argued they were dis
posed to minimize Its effect, ct least until
such time as they could put themselves In q
position to profit by It.
In q few places the belief was expressed
that In coming to the relief Of the money
situation Secretary Shaw did not merely
consider the conditions Of the past few days,
but that his action was largely based on
the indications that unless something was
interposed TO prevent II a very acute pinch
would be felt this week. AN ounce OF pre-
vention Is better than a pound of cure. said
one broker, and the SIC. O0o. 900 deposited
with the banks now will confer far greater
benefit on the holders Of stocks than the
deposit Of two or three times the amount
could have done after the market had run
into another period OF forced liquidation
Before the bank statement made it's appear
ance the anticipation Of a heavy decrease
in loans and deposits. otfsetting in large
measure the effect Of the loss Of cash on the
surplus reserve. had been very general. and
opinions were freely expressed that should
the statement for this reason make a fairly
good showing it's publication would be fol-
lowed by a renewal OF selling pressure. An
ticipatlon In this case proved entirely correct.
as the decrease in deposits was so great as to
diminish the reserve requirements to an ex-
tent practically counteractinR the loss OF cash,
so that the surplus was not appreciably
chan ged. The predicted selling movement
came in fulnlment Of early predictions and
those who had argued that the Secretary OF
the Treasury's action would not be of any
substantial benefit TO the ma rket reiterated
their representations with i told you so
emphasis. Some Of the bulls did not con-
slider that the net result OF the bearlsh opera
tions was particularly impressive. although
a large number of stocks closed at practically
the lowest point OF the day.
In spite Of more than the usual quantity Of
bu llish literature on Amalgamated Copper
that stock yielded easily to pressure. dis
playing weakness, which was the worst feat
ure Of the last half hours business. One
OF the large Western houses was credited
with conducting a bearish movement In the
stock. but the volume of selling and the in
crease in the floating supply caused thereby
were 80 great that many keen observers
thought stock was being supplied by some
very large interest in the company. There
was a complete lack OF what might be called
good support and 30 far as could be Judged
the most important buying came from the
shorts. The traders who a month ago had
eagerly caught on to the bull side quite en-
Enthusiastically sold short after a decline OF
10 points from the high point. although a
few old professionals shook their heads and
made such remarks as that the public. which
had been fooled by the deceptive appearance
OF good buying at the time OF the dividend
declaration. was In danger OF burning Its
fingers again.
One theory about the break In Amalga-
mated which was not OF an entirely bearish
character was that insiders who had made a
very successful turn on the advance to o
per cent. In the dividend rate last January
were endeavoring to repeat the performance
in connection with a possible further In
crease In the rate at the declaration next
month. The January declaration was I'M
doubtedly followed by heavy profit taking
so well handled that the belief was almost
universal In Wall Street at the time that
the activity and action OF the stock betckened
accumulation instead Of distribution. NOW
and again the real character Of the trans
actions In the stock was recognized by keen
observers, but the temper OF the moment
was such that warnings OF that kind we're
totally dlsregarded, and the public buying
went on until practically all that insiders
had for sale was absorbed and manipulation
had to concern itself with a shakeout and
q drop such as has been seen In the past
week, possibly with a view TO renewed &C.
emulation.
Missouri, Kansas and Texas, about which
renewal OF deal rumors were current. was
a strong feature OF the market. the preferred
stock scoring q notably large advance. TIL
deal stories were disoredited In some good
quarters, but 1t was said on respectable au-
thority that earnings Of the road we're highly
satisfactory and that within the next three
months directors would take the necessary
action putting the preferred upon a per
cent. basis. The total issue Of this stock
amounts to only SIS 900, 900. and as the dividend
rate Is limited to 4 per cent. the total annual
outlay involved In payment OF the full dis
tribution to which II 10 entitled Is only $4,000
and this, 1t was said. the road could easily
pay In view Of the fact that earnings now
yield a large divislble surplus. while the recent
issue OF bonds provides funds for carrying
on needed Improvements.
while Reading was subjected to heavy
| pressure all day II acted fairly well and In
many quarters there was the greatest con-
| ndenoe that the labor difficulty could be
arranged without a suspension OF operations
on April 1. although for the purpose OF work
ing OF the accumulated supplies the mines
might be shut down for a few days at inter-
walls In the summer. This confidence seemed
TO be in a measure based on estimates made
by some Of the operators that out OF the 49,
! 600 miners In the anthracite region not more
thar 5000 paid their dues to the union and