The Washington herald., 1907-08-21
WALL STREET NOTES
Inside Support Checks Early
Decline in Prices.
MORE GOLD SHIPMENTS MADE
Foreign Exchange Rates on London
Lessen, Indicating Easier COndi-
tiOns I'm Money Market Abroad.
Reduction in Price of GiIt-edge
stocks Bad Sign in Wall street.

4NtW 1OIhg Aug. no.--AllcT tAS ClOSo VI
the market to-day, the idea was rather
prevalent that the advance IN the after
noon was due TO the cheerful knowledge
that the bad news was out. Both the
Secretary and the President had spoken.
The worst was known. and since for two
weeks and more the market had sold off
under developments and predictions con-
cerning the anti-corporation propaganda,
bears proceeded to cover. Whatever the
truth of this theory, 1t was at any rate
agreed that the bulk of the buying in the
afternoon was for short account.
A trifiing change in sentiment may also
have been produced by the eleventh hour
addition 10 the Presidents speech.
This addition or insert contained some
things slightly reassuring. and it may
have occurred to many traders that the
market had been oversold, had discounted
the speech TO too great an extent. The
remark principally responsible for this
slight encouragement was that In which
Mr.. Roosevelt said he wanted it under
stood that we have undertaken and VIII
undertake no action OF vindictive type.
and, above all, no action which shall in
fict great or unmerited suffering upon
the innocent stockholders and upon the
public as a whole"
Everybody wanted TO know just what
''malefactors Of great wealth" had been
combining 20 bring about as much finan-
cial stress as they possibly can in order
to discredit the policy OF the government
Nd ahxrf 20 - h1-
policy so that they may enjoy the fruits
OF their own evil doing. Everybody real
lied that the President must have known
Just who these malefactcrs are. and just
what they have been doing in depressing
the market; else, Of course, he would not
have made the assertion. Obviously there
must be such persons. but just who they
are made a proposition that no one was
able 10 solve.
After an encouraging opening with gains
running up to l IA points. which was the
opening gain in Canadian Pacific. the
market sold off very sharply. Declines
in all the active stocks were heavy
enough, it seemed, to make necessary
the injunction Of inside support, and in
some Of the shares there were evidences
that this was supplied 70 a considerable
extent Since the opening was up, this
selling was not attributed 10 Secretary
Taft's speech. but rather regarded in
some quarters as a last burst Of selling
by way Of discounting the President s
speech which was expected about midday.
The market was dull when the sheets
containing the speech made their appear
ance, and only revived on the short COW
ering Of the afternoon.
The foreign exchange market closed
with the rate for demand sterling IN
changed from the previous day. There
was announced another engagement of
$4,000 for export TO England or Germany.
The movement was again explained as
a special transaction. Apart from this.
money movements. as affecting the Lon
don position, were reassuring in showing
shift OF exchange rates in favor OF
London in the principal continental cen
ters. These changes on the continent
were considered as reducing the proba-
bilities Of an increase in the Bank of Eng
land rate this week.
The market for many speciaIties is more
like an auction sale than Ike stock
market in peaceful times. When Omaha
and Northwest for instance, come out
at big price reductions, they show very
clearly the weak purchasing power OF
the market and the Strengthened condi-
ton Of holders, for these are gild-edge
securities, and must come from the bot
tom Of the boxes. The price of lie on
Omaha Monday was the lowest since 1890.
when it was a 5 per cent stock, as com
pared with a per cent stock now.