The Washington herald., 1907-05-23
STOCKS STILL LOWER
Prices Decline Below Low
Point Reached Tuesday.
FAILURE CLEARS THE AIR
Stock Exchange House Suspends, hut
Its Effect on the street Is to Cause
Market RaiIy-Foreign buying
Adds to Strength When the Up
ward Movement Begins.

to-day was Of that shifting and iTTOgu-
lar character which, coming after a vlo-
lcn+ and perpendicular advance or decline
in prices often indicates an abatement
Of the impulses previously behind the
general market movement. Indeed, there
were many signs to-day that the recent
liquidation in the market. which has un-
doubtedly represented the closing cut Of
speculative accounts open for the rise.
carried over the troublous days Of
March, had been concluded.
Prices at the opening Of business were
a little higher than they closed Yesterday
under the influence no doubt. OF higher
range Of values for American stocks in
London, and purchases here OF a quantity
OF stocks for foreign account variously
estimated as between $500 and 5000
shares; but pressure upon the market
was still unreleived and carried quota
tons before the second hour OF the stock
exchange session had passed to the low
est levels seen at any time since March
p. But Il seemed, after this selling, that
the liquidation had exhausted itself.
Shortly before noon the failure Of a
stock exchange house was announced. and
the news taken in a speculative sense as
clearing the air" to a greater or less
extent The failure, however. was COM
monty regarded as unimportant. inas-
much as the house in question has not for
many years figured IN an extensive way
IN Wall street transactions.
Al ~
known the market rallied brisk,y. and
although prices declined thereafter from
time 10 time, it was noticeable that the
residence Of the market upon each fan
increased, and the greatly firmpr under
tone displayed led finally 20 a sharp ad-
vance, which brought about final gains
of from one 20 four points in all the
prominent stocks.
Small Buyers Are Busy.
a distinct feature Of the dealings In Sc
Curities to-day was the increase in mum
Der Of odd lot transactions; that is to say
in purchase Of stocks IN blocks Of less
than 100 shares, plainly indicating the
entrance into the market again of the
investment buying which was so notice
able a feature Of the market in the weak
days Of the month before last. Houses
making a speciality of executing orders
Of this kind reported that not since March
Il or March . had there been such
large amount Of stock bought as to-day
for the account Of small investors.
II seemed rather plain, too, that in the
wheat markets to-day as well as on the
stock exchange, a gradual change of pO-
sluon was visible on the part of leading
operators. Although transactions in wheat
were still on an enormous scale ana new
high record prices for the year were made
IN the speculative options. get realizing
sales Of wheat were obviously 81 factor
of increasing potency I'm the trading.
What could not be called exactly a re-
versal of sentiment, but what was still
undoubtedly the growth of opinion that
recent stories regarding injury 60 crops
has been eNaggeratad, was also evidan.
in many ways. The Journal of Com
Terce, of this city, published an eIabo-
rate review Of the crop situation compiled
from data furnished mainly from bank
ing Institutions in the agricultural dis
tricts. The reports thus given covered
about three-Quarters Of the spring wheat
area, and were by no means c0nfrmat0rv
Of the extremely unfavorable reports
that have been current on the produce
exchanges. They We're. in general. that
all the crops were from two to three
weeks late, and that there had been
reduction both Of spring and winter
wheat acreage. but that the outlook was
stili for an average crop If the weather i'm
June and July should prove favorable
No More Gold Exports.
Another matter for announcement in
the market to-day was a fall Of 8 Of /
cent IN ssrling exchange, which. Of course. /
places gold exports out Of the question. /
This decline in sterling exchange was
thought. in some quarters. TO reflect an
early withdrawal Of government money /
from the national banks, which would re-
suit of course, in hardening Of money .
rates. and in others was attributed TO the
large purchases of stocks here during the
day by European houses.
II should be said right AT this time that
there seems 10 Doe no reason why the Sec F.
retary Of the Treasury should withdraw
any money from the national banks in f.
the near future or withdraw funds at any
time except for the purpose Of maintain F..
ing an adequate balance I'm the Treasury
proper The Secretary must. Of course. /
draw upon the national banks 90 q great .
er or less extent for the payment Of the .
national bonds to mature on July l: but 4
the suggestion that has been made I'm re- /
gard to this matter seems extremely wise /
namely. that even on this occasion there
should be no withdrawal Of money from
the national banks. as the phrase is usu-
ally understood but that the Secretary /
should at the time Of the maturity Of the /
bonds. and not before draw his checks F.
IN favor Of individual bondh0lders upon
that portion of the government deposits .
in the banks as ne finds it expedient at .
that time 70 recall