The Washington herald., 1907-08-23
WALL STREET NOTES
Mills Bros. & Co. Collapse
Without Effect OH Prices.
MARKET DULL BUT STRONG
Conditions Could Not Be Improved
by Heavy Government Deposits.
Gold Shipments Abroad - Heavy
Oregon Failure Net Bull Factor.

New York, Aug. 22-The failure of
ing the market. did not as much as dis
turb it in the slightest degree. A week
ago had the failure been announced on
one of the violent breaks, it might have
been considered the first game bagged by
Sportsman Bonaparte, and an indication
that he would make good the boast of
killing his bag
Since that time. however. both bankers
and brokers, having had an abundant time
to canvass the situation, have come 10 the
conclusion that none of the better known
and more important houses are vulnerable.
whatever may be the condition Of a few
lately organized or small concerns. and
have decided that the only big game
likely to fall in the Bonaparte bag is in
mercantile and industrial circles, rather
than in the financial district
As has been repeatedly pointed out,
brokerage houses generally have been
very careful recently in insisting on Gus
toners supplying ample margins. Brok-
ers went through the March decline with
bur few casualties, and they have gone
through the August decline with but one
to date. simply because business has
been transacted with a greater care.
probably, than previously in the history
OF the street. That the Mills firm was
an exception to this rule, it was reported.
was due to a bit Of misplaced confidence
in or misunderstanding with one of the
best known gamblers in the world, who
has been losing more money in Wall
street than he could make in legitimate
business.
With the general understanding of the
most likely solution of the IRterborough-
Metropolitan problem. that is, the sus-
pension Of marlborough Metropolitan pre-
ferred and Metropolitan dividends. there
was 10 market depression caused by
further declines in those two securi-
ties. Apparently. 1t was the impression
that there was future for both stocks.
even II dividends under the stress of
present circumstances are passed or re-
duced.
The covering Of shorts, it vas believed,
constituted the greater part Of the days
buying in the stock market. Accord
ing to some reports. there was covering
Of $1,000 shares of Union Pacific alone.
and Va riOus estimates placed the extent
Of the short interest at the beginning OF
the day all the way from 550.CCO TO 100000
shares.
1t was rather a dull market. but bet
s.-- 4.
the week. Though most Of the gains were
attributed TO short coverings, indications
Of a revival Of substantial buying power
were noted in gains in prices OF many
specialties and not particularly active
stocks
Mr. Hartman was quoted as telegraph
ing on from san Francisco:
The outlook in the West was never
better than it is to-day. We look for
big fall business
News of the failure OF an Oregon trust
company, with SS0o0.o00 deposits, some
what tempered the JOY over this declara-
ton
The Bank Of England failed to raise the
rate of discount and demand sterling ac-
cordingly dropped on % points. The clos
ing rate, 1876 and 4S00 was. however.
high enough 10 induce bankers TO dis
courage those who have been arguing for
the deposit Of government money in the
banks If the Secretary should place any
amount OF money, whether IL is S, ,0e0, 900
or S5000,000, in the banks at this time.
it was COntended, the relief would 20
10 London or Germany. and not TO this
country. Inevitably the effect would be
the resumption OF the gold export move
ment on a large scale. for both England
and Germany have sent securities here r.
such volume that they have turned the
balance of trade, for the time being,
against US There are some bankers who
contend that gold shipments TO Germany
cannot be avoided in any event Later,
wien credits have been established by
grain and cotton bills, and the crop
moving period is at its height, the Sec
retary might deposit money, it was said,
with more beneficial results.