The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1907-11-24
ADVANCE
AF TER WEEK OF
NEW LOW LEVELS
Banks Sold Collateral
and Operators Took
Profits Monday.
Buying on Margins Re-
Sumed-ShortS Are
Nervous.

NEW YORK, Nov. 2s.-On Monday
last the stock market opened with a
soda water squirt and fixed out day by
day during the week until today, when
there was a change.
The action Of the Government In the
issuing OF 100000, 900 one-year 3 per cent
certificates Of Indebtedness and so, 000,
600 Panama bonds was received with
generous applause and a hurrah in the
market. the shorts falling over each
other IN their frantic has te to cover.
On more sober consideration the hnan-
cial authorities came TO the conclusion
that the relief from the Government
was not well planned. that it would but
tend TO cenTaliZing more dollars in the
bulging vaults in the United states
Treasury
However they considere- the relief
measures, they did not hesitate to dump
stocks onto the market on Monday. sell
ing right and left finding the good
market very profitable for realizing
sales, and many securities held in banks
and trust companies as collateral, and
held because Of previous lack of a
strong market TO absorb them, were
thrown on Mondays market in such
way as 10 Jepress conditions.
There can be no question but what the
patient Is convalesceut, but the illness
has been awful. and the recovery Will
be slow and attended by numerous re-
lapses Is fresh sore spots are uncovered,
and strong interests Of the days that
were ind that their weakness must
bring on Liquidation
Money Still HOarded.
with over Ss2.o0O,Oo0 OF foreign gold IN
va ults of banks or en- route since the
inception Of the present import move
mcnt; with the measures OF relief
adopted by the Government, there is no
good reason, save of lacking confidence,
for any further delay in the resumption
of payments over the counters by banks
and bankers. Toe boards have not come
out. President ROOsevelt's assurance
has not treasured. II has perhaps been
responsible for some betterment I'm tone,
more so than the latest methods adopt
ed with his approval for putting more
money into circulation. but dollars are
still hidden, and some Of the interior
banks are holding on tighter than New
York bankers 10 the coin. They are
carrying from Is to 100 per cent. OF
their deposits in cash
II Is considered reasonably certain
that the worst is over in New York. but
the spread Of inactivity and shutting
down of mills and manufacturing estab-
Iishments. with idleness for thousands
of men. reduced wages for others, and
the effect that this will nave on general
business, is a source OF regret and a
disturbing element
New Low Records.
Stocks cannot go one way all the time.
This has been the cry of the bulls for
nearly year, and yet during the last
week low records have been established
on some OF the erstwhIle reIables, such
as New York Central. Pennsylvania, I
Baltimore and Ohio. Erie. and other Sc
curities that a year ago were hundred
points or more higher than they are
today
1t was not until the closing day Of the
week that there were what might really
be called encouraging symptoms. Per
haps most Of the recoveries and the i'm
proved sentiment OF the final day Of the
week was anticipatory Of something
coming out from Secretary CortelvolI's
office The fact that the President had
requested a call from Air. Morgan indi-
Gated that whatever advice the financier
might give the Executive would be
sound and helpful
Sensational publications contain all /
manner Of reports concerning the real /
object Of Mr.. Morgan's visit. but they
are probably based less on fact than on
positive fiction.
Buying on Margins Again.
There was real evidence of buying on
margins on Saturday. Some commits
sion houses and brokerage concerns. ex-
pressed their willingness to do business |
on a fair margin, but reserved 20 their /
own judgment the stocks on which mar
gin orders would be accepted. and regu-
lated their scale of margin demands ac-
coTdingly.
The Steels were prime favorites in the /
minds Of brokers and commission men.
and in the same class were placed Con-
per. Reading. Union Pacific. and Penn \
sylvania. along with the hin shares. /
These stocks can be purchased on 10 to /
% per cent margin.
Shorts Rounded Up.
Despite the fact that the bears have
been IN clover for over a year. thew are /
nervous. and ready on the slightest /
Indication OF a turn &c cover; but. de- /
spite the fact that there has been con
siderable profit-takiEg on their side for /
months, the short interest is uuwieIdy
and the undertone of strength in Sat /
urday's market was something in the /
nature of loud warning. 1t actually /
terrified them. for when this market 1
starts going they viii find 1t hard TO |
stop it,
There have been few changes Of i'm |
portance that were not represented IN !
ne advances OF today. The whole list /
Is materially better than at the close OF /
the previous week. but in the meantime 1
they have nearly all been lower. The /
start on Monday showed a gain OF 3 to /
( points. then day by day there was /
a recession. followed by occasional re- !
coveries. and. finally the strong. buoy /
ant market Of Saturday
Perhaps the worst is over. II so stocks /
wiIl be many points higher before the |
close Of another week. They have been
persistently on the bear side; perhaps |