The Washington times., 1907-11-30
NEW YORK STOCKS
IN A BOLD RALLY
Market is Evidently Dis
counting the Presidents
Message Situation
Considered.

NEW YORK. Nov. 30.-A broad, ac-
tive, strong market. One OF the old
fashioned kind with sharp advances all
along the line and with Reading, Union
Pacific, Great Northern, and United
States Steel preferred favored. There
is not the slightest question. but what
the market is discounting a favorable
message from the President 10 Congress.
As stated before, Wall Street has a
way OF obtaining inside information OF
good and also of unfavOrable news.
When IL breaks with fury it is safe to
say that bad news has Leaked and IS
being discounted. And the same is true
of good news The street expects that
the President will temper the wind TO
the shOrn lamb that he will recognize
that combinations Of capital are part Of
the latter-day commercial life, and that
ir every way consistent with his policy
Of antagonism to vicious trusts and re-
batting railroads, he viii endeavor to
reassure and placate capital trusts ana
railroads.
Wall Street evidently knows what's
what, or thinks Il does. Following the
same theory and the usual action OF
Wall Street IN similar cases, there
should be reaction Immediately after
the message has been given to the
eighty-odd millions OF people.
Will the Advance Continue.
The question that interests the Street
more than anything else is. VIII the
advance continue? The belief that there
will be a reaction of profit-taking and
that the whole situation, while unques-
tionably better, is not what might be
called entirely well, leads to the con-
clusion that reactions are likely to fol-
low from time to time. Then there is
, something like $50, 900 of money COM
fr1u n 10 hanks n 1fEf-
bends and interest payments with the
; LIST of January. Much Of this money will
; be Immediately reinvested in stocks.
Immediately on the resumption OF cur
rency payments by New York and Chi
cagO banks. will the country banks draw
down their deposits TO the limit? VIII
the people draw out their money and
start In buying securities? These are
the interesting questions.
For a long pull, one. two, three, or
four years, the stock market Is, in our
opinion, a purchase for a big rise. The
people who will receive millions in divi-
bends will reinvest much OF the money.
Country banks Will probably draw down
their balances. but not to the limit by
any means. Much Of the crop movement
must be financed, but much has already
been taken care OF.
This is the way many men OF Wall
Street feel about the situation today.
But the banks are going to be very
cautious. Their efforts during the late
unpleaSanLneSs, 10 Keep above board, are
too fresh in their minds TO permit of
much enlargement OF the market specu-
latively. Margin trading has been re-
sumed, but only partially, and the mar
gins asked are nothing Ike normal, so
that The buying today and yesterday has
been by strong parties.
II is not likely that there can be any
steady upwnrd movement, but that an
advance will be followed by at least
partial reaction. a fve-point gain
by a three-pOint loss, and so gradually
with play on sides, the market will
move toward a level much above pres
ent values.
Today's Gains.
The gains today amounted to a point,
on Copper, 2; on Smelter, 1; on Atch-
ison. IA; on Baltimore and Ohio, IL;
Canadian Pacific. 294; Delaware and Hud-
son. ~; Great Northern, /; General
Electric. nearly 2; Missouri Pacific, q
New York Central. Ia; Reading. nearly