The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-05-01
WALL STREET NOTES
Professional Buying the Only
Business Done.
HOUSES CURTAIL EXPENSES
Owing 90 Dismissal of Clerks, Re-
ports Go Out That Firms Are in
Given Circulation by Discharged
EmDIOyes-seIiiRg of I, p. Heavy.

Given Circulation by Discharged
EmpIOyes-seIIiRg of L. p. Heavy.
New York, April 30.-An English states
man once said of the natives of one of
the PANEL Islands that they made pre-
carious living by doing one another's
washlngs. The same might, with almost
equal truth, be said OF the members Of
the New York Stock Exchange, who for
weeks past have had no business to speak
OF. beyond what has been contributed by
purely professional operations. and the
execution of orders for other brokers at
the s. rate. The commission business
that pays $3.50 on every 100 shares of
stock bought and sold. has been almost
wholly absent; nearly all of the business
originating on the floor where the bank
ers engage in the difficult, and, never
very profitable. position of scalping
profits and one another.
To-day there was a little more appear
ance Of outside business than on anyrecent
other day, but the signs OF an increase
were so small that they would not have
been noticed If It had not been for the
fact that on the preceding few days the
volume Of business contributed by regu-
lar customers was to exceedingly small
that the addition Of even a few hundred
shares would have amounted TO multi
pie Of it.
Brokers seemed to take satisfaction
from the fact that their business to-day
was four or five times larger than on
certain days last week, although 1t stiH
left them wondering how they were go
ing 10 meet their office expenses.
II seems altogether likely that there is
still a considerable short interest IN the
market. The extent of this is not shown
in the loan crowd because much Of the
borrowing is done privately-as every
house that carries a fair line of stock
knows when the market is dull the shorts
make no attempt 10 cover. Under recently
existing circumstances about the only way
a bear could cover was buying from other
bears. for the large interests were not sell
ing. and the commission houses were not
any line OF stock 10 speak cf.
Therefore. the shorts have thought it best
to stay short. knowing that accidents al
ways favor that side OF the market. They
could see no sign OF any impetus for a
bull movement. and counted upon crop
scare, or something equally adverse to the
position of the bulls, 10 enable shem To
cover their contracts at a profit or at least
with but little loss Some stocks have
advanced quite materially since the shorts
were put out, and with the comparatively
small floating supply 10 fill their wants
the bears may find IL difficult 10 cover
their contracts IN case nothing of a char
acter unfavorable 20 the market occurs in
the next week or two.
AS a rule May is a month Of inactivity
in stock market speculation, but some
brokers think that the month just entered
upon may be the exception that proves
the rule. This expectation is based on
the fact that the crop damage bugabOO
has already been worked for all there
was in IT,
Owing to the present apethetic atti-
tude of the public toward the stock mar
ket several houses have found it neces-
sarv 10 dispense with the services OF a
number OF runners and junior clerks.
This has been perhaps the case TO a
greater extent with the wire houses than
with those doing a local business, and
probably accounts for some Of the rumors
about the closing up OF offices that have
been heard recently. The 81 a week run
ner or the SO a week clerk, when mis-
services are dispensed with on the ground
of small business. IS apt to 90 out on the
street and tell his associates that the
firm he worked for is letting its best men
go and is about 10 retire from business.
The runner especially on account Of his
acquaintance with other runners. gives
wide publicity TO rumors of this kind and
the details hardly lose by repetition. That
business has fallen of any one can see.
but rumors OF the retirement from bust
ness of old and established firms whose
very name is an asset of value, must be
taken at a considerable discount, unless
the lesson of the past times, when market
dullness left a number Of juveniles unem-
ployed in the street, is 10 be entirely dis
regarded.
It IS significant Of the feeling regarding
the future of the market that many large
houses have asked their employees 10 ar
range their vacations so as TO be back TO
their positions as early as possible in the
month Of August.
Perhaps IL was deemed best that the
market should receive a cold BATH for this
was what the heavy selling OF Union Pa
cific by the brokers who yesterday and
toward the close of last week had been
the principal buyers of the stock practi-
caiiy amounted to. The opening of the
general market was about as cheerful as
an opening could be- but when the traders
observed that the erstwhile bulls in Union
Pacific were dumping stock by the pailful
their ardor became decidedly chilled. and
they FASTENED TO relieve themselves OF
their commitments not only in this issue
but in others as quickly as they could,
No explanation q the change In the front
of the ouerators who had been conspicu-
Gus In the upward movement in Union
Pacific was heard in any quarter. but
some conservative interests express the
opinion that the setback was only tenn
porarv. Not a few houses advised their
customers that advantage should be taken
of moderate reaction to get aboard for
a further rise. Considering the volume of
selling, the stock held M wonderfully
well.
It was funny to note on the reaction
how some of the most voeiferous bulls
cautiously, silently sold out their stocks
laid them down quietly. as If ashamed Of
ion "a ut har