The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1907-12-29
Situation Shows Improve
ment, Although Far
From Being Sat-
isfactory.
New Year Will Feel Eff
fectS of 1907 Trou-
bIeS, and Reduced
Dividends.

old or another year the stock market
assumed a better tone. This was par
tally caused by the better bank state
,1nent and the belief that much Of the
} 500, 90 that Will be paid out in the
next few days on account OF interest
and dividends will find its way back
Into the market for reinvestment. More
over. the stock market is now closely
watched by in-and-out traders. profess
SiOnal and room traders. who are ready
, to follow any turn either way in the
Tnarket for scalping profit. II the prom
Use is for higher prices they will buy,
Fbut no matter what the promise they
will take profits on the slightest indi-
scation Of weakness.
, There are few among the old-time
TRADERS on the market, and also among
the banking fraternity, who do not
Nook with more or less dread on the
possibilities of the year about to enter.
They fear the heritage OF 1907
The savings banks have proved their
advantage over the commercial instI-
buttons in a way. because they. through
their sixty days notice policy. prac-
'tically avoided being obliged 10 sacri-
ice their collateral and with the ex-
'piration of that time there has not been
1.-THE slightest desire on the part OF de-
spositors TO draw down their desopits.
VIII Go Over to 1908.
The heritage that 1907 leaves to 1908
rs not a pleasant one. The great iron
land steel industry is in a bad way with
Hundreds OF idle furnaces; railroads will
mot begin to do the business that they
iTdid in 1907 because Of the lesser volume
tof freight; tn labor OF the country is
EOnly partially employed and in many
iplaces the full dinner pail Is endan-
gered- New York banks have millions
of dollars OF clearing house certificates
TO retire and this Is also true Of the
banks in many OF the leading cities
The premium on currency has about
disappeared. so in the gloomy situation,
there is this much encouragement
! Overexpansion has been pressed TO
Tthe limit and for three months contrac-
Ftion has been the order.
Many banking institutions have been
lwiped out and in the stock market
Falone, the estimates Of securities depre-
Pciation has been placed at 5000, 900. 900.
Prices Have Discounted Conditions.
! Therein lies the safety and the hope
Pof the stock market for 1908. Not only
has the water been squeezed out Of
fsecurities, but much genuine value las
lbeen eliminated as well. Put Il this
fway-the market has discounted pres
Sent conditions 1t is entitled to an i'm
fprovement as the exports are rushed
Fabroad and the gold this way-it Is but
Ethe natural reaction after months. over
a year. of tobogganing. 1t is time that
scOnditions were responding to the prom
l5se OF better times, but the response
must be slow and it must be gradual.
The foodstuff interests are satisfac-
tory There seems to be plenty of buy
ling power in the people and the holt
day trade attests that the prosperity
rOf the last few years has not entirely
left US. if it has hit the stock market
a vengeful stroke
Railroad earnings are likely to com
r1rence to show loss. Some Of the
sstock expansions of the past will make
1he earnings of dividends harder, but
iprices are en- a reduced dividend basis.
Many cash payments must be made
ION Hi stocks Of recent Issue, on New
tEork Central and Missouri Pacific in
the near future, and these payments
reven run over into 1909
The cutting Of dividends. passing OF
anterest payment periods and payment
of dividends and interest in scrip all
Mend to disturb confidence and keep
the lid on the stock market-to turn
EeveJy rally with a conservative reac-
Ptdon-ard yet back OF it all there is
tstrength enough to keep the bears from
Fgetting too free with the list. strength
enough or support on the part of the
financial interests Of the City Of New
Fment, 70 make the declines slow and
GRADUAL
Hope in Investment Buying.
The hope Of the market is investment
fbuying-actual purchasing OF securities,
taking them out OF the market and lock-
ing them away In vaults, not to come
out for months and years. There has
Ibeen much Of this buying Of late and
'the stubbornness with which the list has
yielded when yielding at all. has en-
bcouraged them to make their purchases
n little more freely. A continued up
turn would bring in a large number OF
kbuying orders. but the leading financial
i3nterests in New York city do not want
amy great bOoms nor serious declines
IN fact they would be best suited with
% dull. inactive market.
The year 1908 is a Presidential year.
There is nothing OF the cut and dried
lorder in the campaign and surprises are
l1iable TO be sprung. with the usual
ldoubt and uncertainty. This is another
treason why the powers that be want
shings to go slow. to fiuctuate within
marrow range and to hold as steadily
as possible. The bears do not seem to
De as aggressive as they have been. but
are ready 20 clean up accounts on short
fOrder and every time they do they re-
move a sustaining influence from the
gist
Z The fact that the working balance Of
Pthe Government is getting low suggests
lfhe early calling of some millions Of
3oans made by the Secretary OF the