The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-04-22

Damage cause Slight Furry.
New York, April 2i.-The especial char
acteristics of the stock market last week
were its extreme dullness and its distinct
strength. Transactions in securities
throughout the week gradually diminished
up to Thursday. when they were the
smallest for any day IN the year thus far.
but while the market was inactive ia
this way. its notable feature was that il
was strong. There was a firm and hard
undertone TO #, which discouraged specu-
lative operations for the fall and toward
the end Of the week particularly these
conditions were pronounced.
One question concerning the market re-
Gently which has been rather puzzling TO
those who invariably regard fluctuations
in quoted values from a strictly and tech
nicaily speculative point Of view is
whether the heavy drop in prices which
occurred on March "A last is to be Teck-
oned as that of the real low point Of
the market or whether this decline was
only in the nature Of that secondary fail
that usually comes after a period Of vi0-
lent recovery following a previous mar
ket break. One of the reasons, in other
words, why the short interest in the mar
ket has stubbornly resisted any advance
in prices at the present time is this con-
tention that the market is now in a state
OF SLOW sag" consequent upon its recent
great c0mmOtiOn. A violent drop in prices
is often followed. as is well known, by a
quick recovery, and this in turn by q
gradually declining movement which car
ries values once more down 10 the low
point previously reached. 1t must be said
however, that if the market is indeed IN
any such state as this just now, it is act
ing very peculiarly. So far from being
governed by any definite downward tend
ency il manifests very decided residence.
Whenever it declines the volume OF trans
actions falls on; and so far as surface in
dications are concerned il looks more Ike
"A market that is oversold and sold out
than anything else.
Market for Time Being Professional.
II is, of course, for the time being a
very professional market. and there is
very littie doubt that at least three-quar-
tiers Of the dealings IN stocks last week
originated or the floor of the stock ex-
change itself The market exhibits in
every way the sustaining force Of the
largest short interest in ID that has been
created in the hast decade. if. on the other
hand. IL is held back by many influences
making for conservatism ia financial
operations There is a private borrowing
demand for Amalgamated Copper. United
States Steel, Union Pacific, Reading, and
the other active stocks far larger than
Is popularity Imagined, and Il remains 10
be seen whether the spectators who are
responsible for all this viii be successful
in their gamble.
There were really only two events las
week or influences bearing upon the mar
ket that deserved TO be treated as in any
way of importance. One Of these was the
general exposure of the practices adopted
on the New York Metal Exchange in fix
Ing quotations for the price of copper
metal The frank statements regarding
these methods made by The president of
the exchange himself and by other respon-
sible people We're such as 20 leave no
doubt as 10 the actual condition OF affairs
here. The Metal Exchange comprises
among its membership many prominent
interests in The local metal market and
there is no question but that a large bona
hde business is done on the exchange in
the purchase and sale of tin. spelter. and
perhaps one or two other commodities of
similar sort The real estate owned by
the exchange is valuable and imparts an
equity 10 certificates Of membership IN the
organization.
How Metal Exchange Operates,
Whatever may be the real business done
at the Metal Exchange. il is conceded that
Few. if any, deliveries OF copper upon
contract made there ever occur. and that
the real market for copper in this city
is at the Offices Of the great selling
agencies or producing companies. Never
theless, the Metal Exchange. in order 10
round out" its general operations daily,
quotes prices Of copper as made by a
committee of the exchange, and this com
mittee makes quotations. apparently, 10
please itself. The committee has recently
been quoting prices of copper nearly .
cents a pound below those given in the
genuine market for the commodity, and
the only wonder is that the members Of
the body contented themselves with an
nounclng such a moderate recession in
prices as they did. A greater sensation
would have been caused If copper prices
had been reduced 5 or 10 cents instead
of .. Why was not this done. since j.
could have been done just as easily?
In trade circles, Of course, the Metal
Exchange has long been a Joke. so far as
the quotations for copper made there We're
concerned. Wall street. however. has not
fully understood the matter. and flurries
in the price of Copper shares on the
Stock Exchange have time and again
been caused by the news" SIS 10 the
fluctuations IN the copper market sent
out from the Metal Exchange Building.
there will be better under
Of the matter from now on.
Wheat Damage Creates Furry.
Then. too, the stock market was agi-
tated more or less during the week by
stories regarding alleged damage to the
winter wheat crop from insect pests and
from lack Of moisture. The truth seems
10 be that In Texas and Oklahoma. where |
lnly little winter wheat is raised, a good |
zeal Of injury has been caused TO the !
crop by the work of the aphis bug In |
Kansas and in Nebraska there has not
been the full average of moisture thus
far. while the farming season over the !
country generally is late Neither in /
Wall street nor on the produce exchanges
we're these stories Of crop damage re /
sarded as of any serious moment.
This is a time of the year for crop /
'cares, and everybody who knows any /
hing at all about such matters under /
stands that the so-called experts VINO are |
travelling over the grain fields and send 4
ng ont stories about injuries 10 crops are !
n The empIoy Of speculatlNe grain houses |