The Washington herald., 1907-03-28
ADVANCE IS CHECKED
Early Market Gains Nearly
All Lost Before Close. i.
RUSH TO BUY AT THE ONSET
Death Of sssiIents smith in Part Re-
sponsibIe for the DeeIiae-Aidrieh
ain Expected TO Prove of Great
Beneat. since Financial stringeney
on april 1 Is No Longer Feared.

New York, March 27.-The altogether
favorable character Of developments bear
ing upon financial Affairs that were an
nounced yesterday and to which further
emphasis was lent in the morning news
papers to-day. naturally resulted this
morning in what is known in Wall street
as a wide opening in prices on the
stock exchange.
There was rush by people to buy
stocks that al the outset sent quotations
for the leading shares up from one TO
three points beyond the large advances
recorded at the close Of business yester-
day; and this strength Of the market
continued with various small intermis-
sions up 20 the end Of the first hour OF
the afternoon.
The inevitable and familiar recession
in prices then began. caused, as usual. by
profit taking sales by those who had
bought stocks on the day before, and by
renewed liquidation Of weak accounts, but
to a greater extent than by either Of
these forces by recurrence OF attacks
by SPECTATORS for the decline. Under
selling Of this sort the larger share of
the gains made earlier IN the day was
lost, although the market plainly resisted
the declining tendency with greater vigor
than it has done for a long time
Smiths Death Aids FAN.
The fall to-day has been accelerated,
perhaps, by news of the death abroad
of a capitalist whose holdings Of certain
railway stocks are known TO be large. The
capitalist in question, however. IS not
known to have been at all interested in
the stock market in a speculative way.
and there are substantial reasons for
stating taat the future possession of the
securities held by him has been so ar
ranged as to make his decease III no way
a matter of financial concern.
The active power fer the moment in
the market is manifestly and simply
bear manipulation and that too. con-
Quoted by a greater number of rash,
youthful, and inexperienced spectators
than have been operating in stocks at
any time since the boom of 1902. The
furious selling OF stocks that has char
acterized the market in the last few
weeks has proceeded almost entirely from
three or four commission houses whose
clientele is Of an ultra gambling sort, and
there is not the slightest question but
that customers of these houses have
been ''pyramiding' on the short side Of
the speculative account in exactly the
same way that others like them did in the
frenzied speculation for the rise five years
ago which met such a disastrous culmina-
ton
There is. of course. no doubt that this
attack upon the market has resulted in a
great amount OF genuine liquidation Of
stocks: but it remains TO be seen whether
further operations of the sort at the
ridiculously low level of prices for the
stocks Of the great railway corporations
of the country that now prevails viii be
attended with success
Money Rates 10 BE Easier.
The one powerful argument which spec
ulators for the decline have been able to
adduce in recent months IS that rates for
time money were larger than the yield on
dividend paying stocks, and that there
were signs that these rates would soon be
lowered, but such signs have not put in
an appearance. Almost invariably after
the first Of April each year money rates
tend TO soften from purely natural causes
The government is also taking advantage
of the provisions of the Aldrich bill and
proposes to see TO II that the money sit
uation shall not be strained by an intake
on the part Of The Treasury Department
of money paid upons scustOms dues AID in
ternal revenue collections. A considerable
portion of the s1T.0O0.OGO released in a lumI
sum from the Treasury vaults through
Secretary Corteiyou's order of yesterday
was covered into the local banks to-day
and il Is probable that this entire sum vii
be paid into the banks before the week Is
over
II in addition to this the Secretary of tht
Treasury should announce that he pro
poses to pay eff in cash and without an!
refunding operations whatever the 500,
0000 of per cent bonds maturing on tn
1st of July, it can readily be seen what
change has come over the general aspec
of financial affairs. Although the dreade'
lst of April is near at hand, no more thai
legal rate was bid to-day for time none,
for any period, and it was said that Ger
tain large loans had been negotiated 70
long maturities al less than this hgure
The youthful spectators who are engages
in selling contracts for the delivery o
stocks at present prices may wisely pom
der a little as 20 the probable course o
the security market when once a rela
lively long future Of ease in time none
rates is assured.