The Washington herald., 1907-04-08
MARKET FEELS HELP
C0rtelyou's Announcement
Tells on Transactions.
WILL DIsBURsE $85,OoO,OOO
Results in Lowering Rate of Time
Money and QuiekeniRg OF Market
for short-time Railroad Notes.-The
Iieved Market VIII Also Respond
to Improved Conditions.

New York, April Right at the close
Of business for the week on the stock
exchange a week ago last Friday, a vio-
lent upturn in the price of Canadian Pa
cihc sto,k was an impressive reminder
10 spectators for the fall in values that
people in Wall street who sold stocks
that they did not own had sooner or later
TO buy them back again. and that it was
not always easy to get them back Al
though at the beginning Of the following
week the great rise in the Canadian Pa
cihc shares prompted realizing sales in
London. and there was no little general
profit-taking in this market on account
Of the large advance in the average price
of stocks made without any reaction in
the course of the last I'VE business days.
it was yet plainly discoverable that the
stock market was animated by new
feeling
From time 10 time during last week
various drives on different occasions We're
made at prices by the still strong bear
party, but whenever the market declined
under these onslaughts ii tended TO be
come inactive. Very little further Hqui-
dati0n was noticed and there were nu-
merous signs that the buying power un-
derneath the market whenever prices
declined was much more powerful than
any selling pressure when prices add
vanced. Throughout the week these ia
vorabie symptoms became emphasized.
even if Wall street was for d time more
or less slow 10 recognize them, and had
its attention diverted once or twice from
the factors of real Importance in the sit
uauon by such incidents as the wretched
Harriman-Roosevel controversy.
COrteIyou'S Aid Tells.
What has chiefly wrought this change in
affairs has been, of course. the improve
ment in the money situation caused by
the release OF "A large amount Of govern
ment funds at this center and here again
Wall street was slow 10 grasp the real
bearing of the steps taken by the Secrs-
tary of the Treasury When on March Il
the Secretary announced that he would
buy So. coo of the maturing governme Mt
per cent bonds Of 1891 at the same pricr
that would be paid Tor them upon the
date Of maturity Cthis action representing
in substance an offer 10 holders OF these
bonds of the interest upon the bonds
from now until the 1st of JULY no great
quantity of the bonds was at first turned
in, because those who owned them had an
idea that sooner or later some process Of
refunding the issue might be adopted by
the government which would make an
exchange Of the bonds into per cent
government obligations more advanta-
9 f.1.7r
This idea was dispelled by the announce
ment last week that the Secretary would
refund only S58.000oO0 of the bonds in
question, and this upon terms which
would make the exchange desirable only
10 national banks. About S1S00O000 of the
bonds are now held as security for bank
note circulation. and these will probably
be willingly converted by the banks into
= per cent ISSUES in order TO avoid a can
collation. OF the circulation based on them.
About Sl0.000O00 of the bonds are also
held as collateral security for the deposit
of public funds A certain portion OF
these viii probably also be offered by the
banks for conversion.
VIII Disburse 500, OOO,OOO.
only about three-nfths of the SIS. 600. 9ol
of bonds covered by the Secretary Of the
Treasury's circular have been paid on up
TO the present time, It is probable. there
fore, that fully S95,0000l0 more will be dis
bursed by the government between now
and July l next, Some Of this money Will,
Of course, be paid by checks upon the
government deposits now in the national
banks, but a good deal of II viii come
from the Treasury vaults proper and the
money market viii be benefited thereby
rI4 al
ceived from the same source. But tho
Treasury did more than this. II placed
Immediately Sl5,05JCl0 in the national
banks in this city. representing the rede-
post in the banks Of "a portion Of the
money paid in by the government upon
customs duties thus far during the year,
and Il is undoubtedly the intention OF the
government from now on 20 deposit GUS
toms revenues as fast as they are re-
csived IN the national banks Of the cOun-
Try. This Outpouring OF money and the
indications that il viii continue resulted
naturally, in a decentralization Of the time
money market. Time money that could
not be borrowed et 6lz per cent a fort
night ago. was offered last week at 5i,
per cent. and bankers united ia saying
that no great amount of time money f0I
long periods could be lent at this figure
They had reference, of course, 10 cases
where approved collateral was rendered
as security for the loans. and the circum-
stance that the Erie Railroad Company
had TO pay per cent during the week
for a time loan of S5.500.0O0 was not con-
sidered at all as derogating from the i'm
mense change for the better in the general
financial position.
As a result. secondly, of these events
the market for railway short-term note
issues and the general bond market ex-
perienced a quickening such as has not
been witnessed before in the present year
All the bonds of semi-speculative charac-
tel dealt in on the stock exchange ad-
vanced last week from ! to points, and
the bid price for the leading railway
short-term notes averaged from ~ to
points higher at the close Of the week
than al the beginning. 1t would have
been very surprising, indeed, if, under
such circumstances. the general stock
market failed TO advance and advance
il did with "a rapidity that in some cases
appeared to be as sensational as did the
recent decline. Thought must be taken
however, of the long continued and alto
gether extreme depression in the market
recently and of the great quantity OF
stock thatin the course of the fall passed
into investors hands. It is always OBJ
servable upon SUCH occasions that the re-
cOvery in the market when it sets in run.
very much farther than the majority OF
observers thought likely at the outset oil
the movement. Even at the final quota.
tions of last Saturday the market had moi
recovered half OF its decline since the be
thinning OF the wear. and il cnnld SIN h.