The sun., 1907-04-21

Der: OF the leading stocks. and these gains
we're attained 80 rapidly and.So entirely with
out apparent cause that the session. instead
OF being wholly uninterestinE, gave the trad
Ing element one OF the most genuine surprises
it has experienced even in this year Of start
ling price changes.
How extreme vas the duiness during the
greater psrt-Of the session may be understood
from the fact that up to the time OF the pub
IlcatlOn OF the bank statement not more than
half the active stocks quoted by the COM
mission houses on their quotation boards
could show q single transaction, Even such
usually active issues as st. Paul. the Erie
stocks, Rock Island. Southern Railway,
Missouri. Kansas and Texas. and Republic
Iron and Steel had not up 60 that time figured
In the trading-a condition without precedent
in the business Of the last year. at all events.
Many OF the traders, unable to stand the op-
Dressve dulness. left the floor and so missed
the very interesting outburst that came at
the end.
For a week there had been good ~ unob-
trusive buying Of Chica go and NOrthw eHtern,
and this continued yesterday, although
little more openly than befOTe-a change in
this respect being perhaps necessitHted by
tho fact that the floating supply had become
40 reduced that the buyers in order TO get
stock were obliged to come ont in the open
and bid for IL. The reason for the absorption
could only be surmised but that accumula-
ton was in progress could hardly be doubted.
and this fact initself was regarded as factor
OF generally bullish import.
Just before the close OF the market the
Hill stocks jumped into. the frat rank Of the
advance. and while some Of the activity which
they displayed might have resulted from the
covering OF shorts there is little question
that buying OF a very good character gave
the first Impulse and continued to lend lts
influence until the last transaction was COM
pleted. In these stocks As in Northwest there
had been for days u degree O[ strength that
foreshad adowed'an upward movement OF some
proportions, the ore certificates especially
displaying q very etrOnR tone. Sons buy Ing
Of the latter probably TeHulted from Tealiza-
tion Of the fact that the situation In the steel
trade was such as 10 call for large output
Of ore in the current year, All the I'LL issNcs
have had heavy decline from the high prices
Of last year. and conservative interests think
a fair recovery would be only natnTal
i do not know, said a trader, who has
been buying Northw ssC and The Hill stocks
but soma interests have been buying and
that IL encouraging. From the sort OF talk
I have heard around the Street recently Il
was almost led to believe that nobody wanted
to buy anything. but now know better. -
Union Pacific advanced In sympathy with
the stocks OF the other Northw estern roads.
but there was nothing In the way Of news
bearing on It directly. nor was anything,
wanted In view Of the fact that at prevailing
prices the stock returns about -. per cent.
on the investment Cables received from
abroad show ed that there was a recurrence
in London aud Paris OF the bulsh talk that
had preceded the rise in. tho stock two or
three weaks ago. There was n disposition
10 attach a good deal Of Importance 10 the
foreign attitude. although there was really
nothing TO show what il was based on-from
the fact that certain bankers interested in
the property are now spending . vacation
in Europe while Still probably in touch with
their associates here.
Never sell q dull market" is . maxim
that has stood the test OF time. ...,.
The astonishingly large Increase in the
loan account Of the associated banks. and the
accompanying incre ase in deposits which
resulted in a substantial decrease in the sur
plus reserve, induced some Of the traders TO
turn to the short side Of the market Just as
soon as tho bank statement made its appear
ance These, however. found reason 70 re-
Rrpt their action before the market closed,
several OF them being obliged to go home
short although they would have much pre-
up the week without any commitments on
either side OF the market. The generally
accepted explanation OF the Increase in the
loan account was that a large amount Of
foreign loans ON American stocks had been
paid on and replaced by money borrowed
from the local inst!tutione. and that In addi-
ton the trust companies and oHt. OF town
banks had Withdrawn a considerable amount
Of funds not caring to continue as lenders
under the prevailing low rates for call money
Only three stocks, Union Pacific. Reading
and AmaIEamated Copper, were dealt in to
the extent Of upward OF 10 900 shares. and In
no stock did the total volume OF transactions
reach up, to the 25y0Oo share mark. By far
the greater number Of issues In tho active
list we're dealt in to the extent OF less than
900 shares, and nowhere on the list was
there the slightest evidence Of liquidation.
REGARDING the money situation one OF the
best weekly market letters issued In Wall
Street has the following: "Of' course. the
great cause which checks speculative activity
is the money market. just now rates here
are low on account Of the liquidation which
has taken place, but II is by no means certain
that general trade has been ourtailed TO any
great extent. That there, must be some
curtailment due to the fact that the business
of the world outran the supply of available
oa Oital seems probable. IL was this that
caused the disturbances in every great money
market OF the world In March. IL seems in
credible that the general business community
should not have learned the necessity OF TAX
ing in sail from these disturbances. but II
il of course possible that the country may
not see the necessity for such prudence,
though we cannot believe IL. As We see the
problem, the causes which have produced
much Of the trade activity. which has used
M capital win continue to act, and therefore
really cheap money during the next year
seems out OF the question, but the check
which financial disturbances have given
will make money relatively cheap for some
time TO come. tits, however, 90 be expected.
and indeed almost certain. that rates here
will get nearer those prevailing In London.
The rates for time money here are indeed
rather hi cher than those abroad, as is natural
and conforms 60 the teaching OF financial
history. As to call money It must be re-
membered that the Wall Street money market
is the only one In North America IN which
money lent on call can be really got back
in any quantity required. II the interior
hanks lend money 10 their customers the
loans may be extremely good, but they are
in no sense loans that can be called without
AT all events lon 9 notice being given. There
fore banks either here or IN Canada must
keep a very large PROPORTION Of whatever
funds they have to keep ready 20 pay on
demand In loans on Wall Street collateral.