The Washington herald., 1906-11-21
WALL STREET NOTES
Money Coming Back from the
West Benefit to Market.
EYES NOW TURN TO CONGRESS
Bankers and Brokers Interested in
Presidents Messnge and Probable
Action by Bav-maIing Body.
Union Pacific and 81. Paul in Close
Race-HiITs MeIOn-cutting.

Action by Baw-maINing Body.
Union Pacific and 81. Paul in Close
Race-HiITs MeIOn-cutting.
/ New York. Nov. 20.-Ca1 money reached
higher notch to-day than on the pre-
ceding day. and the market for time
! funds also was firmer. But, while the call
rates went to 10 per cent, the stock mar
/ ket showed but little effect. and that
rather in dullness than in pressure TO
sell The baDkings interests in speak
/ ing Of the money situation say that from
time to time until the end of the year
occurrences of pretty high rates should
be looked for. Already this has begun 10
manifest itself, as a little money from
/ the West and other sections has reached
here. TO be placed on call and time. but
principally on the latter. The willing
ness Of out-of-town institutions to place
funds on time is regarded as d very
hopeful factor since it indicates a feel
ing on the part OF the bankers that the
demands for crop-moving purposes have
been satisfied.
y
Der of a prominent banking house. lis
the only thing that could have saved US
from rampant speculation and its con-
sequences. Every move is in favor of
higher prices. but speculation must be
kept under restraint until we get into
the position where there will not be
enough money 10 sustain d bull market,
as well as the tremendous commercial
activity Of the country and one or the
other must give way. II is for the ult-
mate benefit Of all to keep within safe
lines.
If the advance in money rates is in
tended to check speculation and force un-
loading OF stocks as I am told is the
case" said a floor trader, Il would like
TO know against what class of operators
il is directed. II cannot hurt the big
ones. and if only the little ones are effect
ed, viii the market sUffer2 Ny little
guess Is that it viii not"
Some time between now and the as
sembling OF Congress there will be a good
sized decline in prices" in this or words
OF similar purport the majOrity of traders
express their opinion regarding the mar
ket. Il is interesting to recall that some
predictions were made a year ago but
were not fulfilled The general theory ap-
kind OF a desire on the part of the large
interests TO take the stock. although 50
far the weight Of evidence is entirely the
other. Cniavorable circumstances only
show the more clearly that stock are in
strong hands and that the holders are not
apprehensive OF the future
At about the time when Congress met
last year money was tight-the highest
rates for call funds were made in De
cember-yet stocks ruled strong over the
end OF the year. and went to very high
levels in January so that the selling In
fear Of what the President might say in
his message was hardly of an influential
kind.
A year ago there was little hope that
the Presidents message would contain
many words Of consolation for Wall
street. This year it is different, for while
il is believed that the trusts will be dealt
with vigorously, the recommendation for
currency reform may go a long way
toward counteracting the other queS-
tons. 4 great many conservative inter
ests in the street has been continually
agitated on the trust question in the past
couple of years. A further agitation OF It
will be like threshing over old straw from
which a little more chaff, but hardly any
solid grain could be beaten.
If the suit 10 dissolve the Standard OIL
Company contains no more serious possi-
buities than the one which resulted in
the practical dissolution OF the Northern
Securities Company. stockholders Of the
so-called "Oh Trust may well wish it
success.
It IS seriously contended that the rea-
son why Pennsylvania has lagged behind
the rest Of the market the past week
is the fear that the employees Of the sys-
TEN will not accept the 10 per cent in
crease in wages voluntarily granted 10
them as an adequate Offset to the high
er cost Of living. OF course. as most
brokers argue, it is never possible
to tell what organized labor may do.
bat il is hardly possible TO believe that
an increase which will give to the en-
nloyes the equivalent Of the entire gain
made by the whole system will be re-
jectcd as not sufficiently liberal At ali !
events, the company could not afford TO |
go further
There were times during the day when |
Union Pacific and St Paul sold at exact /
y the same figures, but during the great /
er part Of the session the price of the lat /
ter was fractionally above that of the /
former. The traders were puzzled by
the equality in price where all else was /
so differentiation Pacific, for instance /
being a 10 per cent stock. while St Paul /
is at present en- a : per cent basis-and /
there was undoubtedly some buying OF 1
the one and selling OF the other, on the /
theory that no matter how the general /
market might move those two could not /
keep together indefinitely.
Close observers of the trading in St /
Paul said they could see no evidence Of !
any attempt 1t realizing on the part Of /
the large interests and that the supply of /
the stock was apparently as small after
the rise of nearly twenty points as il has /
been since the beginning of the move /
meut. They had no theory TO account
for the strong technical position, but
were impressed by the condition as they
found IL Guessing was. however.
INDUCED in by some traders, and followed
a new line, the prediction being made
that the next dividend to be paid in April.
1907, would be at the rate of per cent
yearly.
Among people who ought to know all
about Rock Island the movement in the
stock appears to be regarded as some
thing quite mysterious They admit that
the road is doing we'll, but where the
buying comes from they do not seem to
have the slightest idea. Possibly when
they get all the stock they want they
may have some information on tap
l.