The Washington herald., 1907-03-22
MARKET RULES DULL
Tendency Toward Greater
Strength Is Shown.
VOLUME OF TRADING IS SMALL
Operations Chiefly by Professionals.
Bank Of France Advances It's Dis
count Rate-Erie's Retrenchment
VIII Amount To Fully S2O, 900, 900.
New York Expects London Geld.

Now York. March 2l.-The movement OF
business on the stock exchange to-day
was toward dullness, and also toward
greater strength. Save for "a compare
lively small recession in prices in the
earlier part of the day. caused by the eff
feet of the not wholly unexpected advance
in the discount rate of the Bank OF
France from 3 to 31-2 per cent. the ten
dency of prices was throughout the day
10 a higher level.
Closing quotations stood usually at a
net gain of from one to four points. The
total volume of transactions in the mar
ket however, was less than that of any
full days business for more than fort
night. and. according to all observations,
represented in large part the operations OF
professional traders.
There were no particular changes in the
price Of any one stock, and the market
seemed TO be governed mostly by the
prevalence of a general feeling that the
factor OF greatest weight in itfor the mo-
snent was the very large speculative com
mitments for the decline in values that
have been recently entered into. It APP
pears to be commonly thought that events
OF the last few days have served 10 create
TIE largest short interest in the market
that has been Witnessed for several years,
and that this short interest is just now in
a more or less exposed position. Since
the great disturbance OF last week, sue
eeeding attempts to break prices have not
been very successful, and there is no
doubt that the mercurial temper of Wall
street has begun to tire a little OF the
''bear'' arguments that have been so long
used.
Great Northern Advances.
Among the active stocks fluctuations To-
day We're most lively, as they long have
been. in the Union Pacific and Reading
common shares, although Great Northern
preferred stock advanced 8 points upon a
ruHaor that the decision Of the Supreme
Court of the State of Minnesota, in the
suit brought to restrain the Great North
ern S60000,OO0 stock issue, was likely TO he
I'm favor Of the company. The decision,
If il proves To be of this character, will be
wholly in line with the opinions of those
in the financial district best qualified tO
judge about the matter. II is TO be re-
membered, however. that the new stock
issue. II it IS allowed 10 be made. viii
bring further burdens upon the money
market.
There were really only two matters OF
news to-day that were the subject of any
comment in Wall street. the rise in the
Bank of Frances discount rate and the
announcement OF the directors of The Erie
Railroad Company. that they proposed Ia
stop work on all but a small number OF
the Improvements upon the property ol
The retrenchment thus involved will
amount. il is said 10 curtailment of ex-
penditures of over 500, ,0O0, ,000, and has been
made necessary, il is obvious first, by the
strtngency OF the existing conditions, and
second, by the seemingly hostile attitude
of the legislature of this State to-
ward corporate enterprises.
II the 'pubic-utility" bill, now pending
i'm the legislature. becomes law, the
whole policy that has IN the past animat-
ed the laws of the State of New York
toward public service corporations viii
undergo "a striking change and viii call
for a sweeping revision OF judgment re-
garding the stocks and bonds OF these
corporations from the point of view OF
investors 1t can hardly be expected
that the action of the Erie Will not entail
the cancellation OF orders previously
given by il to various iron and steel com
panies.
Knew Rate Was to Re Advanced.
There were many bankers to-day in
Wall street who professed to be surprised
by the announcement that the Bank OF
France had advanced its rate of discount
but it was known in high quarters
nevertheless. that the step was impend
ing. This is the drst time the bank has
made such a move since May, $780, ever
the pronounced strain in the English
financial market last fall failing to dis
turb French equanimity. For a long
time. however the sterling rate in Paris
has stood at a point at which gold ex-
ports from Paris TO London were threat
ened while the movement of sterling in
the New York market has been such as
to make Withdrawals of gold from Lon
don for the account of the American
bankers a matter of daily imminence fol
several weeks.
1t is thus manifest that the action Of
the directors of the Bank of France 10
day is essentially a protective measure
against the demands of this country for
gold. and that it brings out in muct
clearer light than at any previous time
the condition of the international money
market The Bank of England to-day. IL
its weekly statement, reported a lowered
proportion of reserve TO liabilities.