The Washington herald., 1907-02-17

New York. Feb 1.-the traders
thought the bank statement rather col
ored affair. and such Of them as had
counted on bad showing to enable them
20 cover their shorts and had not for
gotten their experience a week ago, pro
ceeded TO even up over the weeks end,
seeing no reason TO anticipate anything
that might cause the market TO open low
er on Monday. Some Of the keenest OBJ
servers on the floor expressed entire sat
1sfactiOn with the way the market acted,
taking the view that if the large interests
were not so openly in favor Of a slow ad-
vance rather than an aggressive rise, the
shorts could be forced into the liveliest
eovering movement that has been seen in
many day.
One Of the strongest features Of to-days
market was Canadian Pacific. which
opened points higher on active buying,
The argument was rather indirect. but
not without merit IF, said the bulls on
Che stock, the street sees reasons for
congratulation in the sale Of New Haven
bonds abroad on something like a per
cent basis. let it not forget that Cana
terred stock in London on terms better
30 it than { per cent basis"
New Ravens new obligations are. of
course a fixed charge, while the dividend
on the Canadian Pacific preferred is con-
,ingent, which makes the difference in
Hotations ali the more favorable 10 the
Canadian company; and as this road is
now supplied with all the money it wants
and a good balance to spare. il Is natu-
cal that the market should reflect the
fact that the financing was done on terms
more favorable than any that are within
the reach of roads In the United States
One thing that Stands in favor of Cana
dian Pacific preferred in London is that
the stock is legal investment for trust
funds.
Union Pacific acted So well throughout
7he day that many of the traders who
had been appTehensive Of the possible
effect OF the resumption Of the Interstate
commerce investigation, came to the con-
elusion that large interests either were
Indifferent 70 that fact or were bent on
utilizing the intervening time TO make a
turn in the stock As in the case of
Canadian Pacific. the New Haven hnan-
cling was used as the bull argument, the
ground on this instance being that as the
bankers who arranged the placing of the
New Ravens bonds abroad also act as
bankers for Union Pacific they could
probably obtain good terms for any
financing that the latter might want 10
undertake.
II was not suggested that there was
any immediate need of new financing but
that if Union Pacific at some future time
should decide TO sell bonds to pay for
D the investments made in the stocks of
other roads since the end of the last
fiscal year, it could probably place them
in Europe without much difficulty.
Anaconda rose to high record price,
but reacted toward the close so that at
-he end of the days session it retained
only a small fraction of its early gain
There was q story to the effect that the
Amalgamated Copper Company would
make an offer Of its own stock, share for
share. for the outstanding stock of An
acoada. which would be equivalent T.
putting O. market price Of nearly AGO on
the latter. the par value of which is only
So a share. while Amalgamated is Of
par value -of Sl0J. The story however
found Few believers, and there was
strong suspicion that Anaconda was re-
ceivirg attention from spectators who
make a speciality of such narrow stocks
as this and United States Realty which
scored "a sharp advance.
The attitude of the large interests was
best shown by the action of AmaIga-
mated Copper, which moved within
range Of three-quarters of a point. not
selling any time during the session as
high as us or as low as IA. but showed
small advance on the day.
Close observers Of the trading in the
IIH stocks said the buying appeared to
be % very good quality. and that unless
all signs failed some Of f. came from the
Hartman interests. There We're no
rumors 90 account for the buying but
this IT, often the case when accumulation
Is in progress. the bullish ammunition be-
ing reserved for use after the large in
forests have succeeded in getting their
lines.
out Of harmony with the general sen
tiweUt on the Aldrich currency measure,
the weekly letter of one of the largest
commission houses in the street says.
1T is wei that the truth be distinctly
stated and those who base their hopes
on the miserly sop offered by the Senate
an the auti-curTeucy legislation should
disabusa their minds of belief that there
is any real progress toward elastic cur
rCuey IN tie measure which the AIdrich
b.ii offers namely: first to deposit GUS
ioms receipts as We'll as internal revenue
in banks second. TO Increase the mini
mum of circulation allowed 20 be with
drawn monthly from 100000 TO g. G53.JJ
''The first provision merely restores
further volume 60 the circulation after
depletion. It is altogether superficial.
10 leiepOsiJ money Withdrawn by the
Treasury from the circulation does not
ADD a particle of automatic elasticity to
thc fixed sum Of the currency which.
whether in bank or Treasury totals the
same. The second provision, IN view OF
making for elasticity. is rather distinct
ly a means for contraction when the
money is needed. Secretary Shaw at the
dinner Of the Missouri Society said. An
issue OF the bank notes, secured hy a de-
p0sit Of bonds Ike orr national bank
circulation always Yields greater profit
when interest rates are low than when
interest rates are high. The tendency.
therefore, OF an bOnd-sCcuTCd circulation
IS 10 contract as interest rates advance,
and to cXpcnd as Interest rates decline
"Thc AldriCh provision then similarly
allows at the time OF most needed ex-
mansion contraction of the currency Of
Sm000 a month instead of $5.oM.0J0 as
now permitted
Discussing in its market letter the cues
lion OF stock watering one of the most
conservative houses in Wall street says:
If the courts are asked to decide whether
any proposed rates are Illegal because
they interfere with the rights of owners
of railroad property. the question will be
not what the property is capitalized for,