The Washington herald., 1907-03-21
MARKET STILL DULL
Little Support Found and
Outlook Not Bright.
SHORT INTEREST IS GREAT
Prices open at Advance, but Soon
Experience a sharp Reaction.
Rumors Affecting Credit ThiekIy
Circulated, but None Found 10
Have Any Basis-Money Improved.

New York March 2O.-The stock market
to-day only differed from its immediate
predecessors In that it was considerably
duller and that swings" in it were much
less extreme. The tactics of spectators
for the decline were very much in evil
dence. and upon any momentary increase
of the pressure from this source prices
seemed to decline very easily. On several
occasions during the day the market aps'
peared TO be practically as destitute Of
support as il did during last weeks dis
trbution. but 1t was clear. nevertheless.
that operators for the fan were not as
confident OF their position as they recently
have been. and bought in the stocks sold
by them with a good deal more haste
than they have done in the recent past.
On the other hand. whenever the market
rallied with any vigor a good deal OF
stock appeared to be for sale
The truth is, of course that the mar
ket has come TO be subject to a great
number of conflicting influences, Iiquida-
tion IS obviously still proceeding when
ever a favorable opportunity offers and
because Of many different reasons. But
the effect of this Is offset whenever
prices recede by certain amount Of in
vestment buying. which has undoubtedly
been attracted 10 the market, and by the
purchases made to cover sales for the de-
cline.
The short interest in the market is on
the face Of things, greater at the present
moment than il has been at any time
for several years, and II is, of course,
possible that much of this short interest
is only apparent, and that the borrowing
demand for stocks arising from seeming
speculative operations of the kind repre-
sents only the unWillingness Of sellers of
real stock to make for the time being
actual delivery Of the shares sold.
Holds HIS Reading shares.
It is current gossip in Wall street that a
large capitalist who some months ago
placed upon the market at large profit
the greater portion of his holdings of
Reading common stock did not at the
time deliver the shares from his strong
box, but made what was practically a
short operation in the market, and later
on bought in the stock in the usual way.
Had he not chosen TO replace the stock
he would have completed his transaction
by delivering his own certificates If
anything of this sort has been going on
in the market. an important influence
affecting the future of prices will be,
naturally, whether holders of stocks who
have thus sold shares without delivering
them choose 10 Te-enter the market as
buyers or TO complete their liquidation
by transfer of the real stock sold.
Prices opened to-day almost invariably
At "A round advance above their yester-
days closing figures and then suffered a
reaction that, if il was not as violent as
that of yesterday. was vet severe. declines
OF from two to four points being common
In the standard shares. Recoveries and
depressiOns succeeded each other. leaving
IN the case of most of the active stocks
fractional advances and declines about
evenly commingled at the end of business.
The only specific feature of the market
during the day worthy of mention was the
particular weakness at one time Of the
American Smelling and Refining common
and OF the Tennessee Coal and Iron
shares. The first named stock fell six
points in the early part of the day on
fairly large sales, and closed at a net fall
OF three points. Opinion was equally di-
Vided as 70 whether or not this was due
10 bear attack. Tennessee Coal and Iron
stock. which is. as everybody knows.
thoroughly cornered, fell at one time 10
price of 1874, as against a price Of 40
finally bid for it yesterday. But the stock
rallied again as quickly as it fell
RumOrs Are Dfscredited.
There was a great thinning out to-day
OF the rumors affecting credit that were so
thickly circulated yesterday, aud general
confidence as to the situation in this re-
gard was undoubtedly greatly strength
ened by the assurances on the subject
given by the leading bankers. There is
very little doubt that yesterdays stories
We're substantially fctions. circulated by
the bear element and having only the
slightest Il any vesture of truth
The general money situation appeared
10 be easing a little. call money rates
holding al relatively low figures. while
time money could be rather uniformly
obtained at per cent, as against last
weeks 6iz per cent, Banking interests
expect of course, some stiffening of these
rates around the 1st of April Sterling
exchange was again weaker, intensifying
the anomalous position in which the ster-
ling market now stands.
There is - the present time a sure ana
comparatively large profit in bringing
6V+0 Cft4 ~ tAf9 Stt4c from Europe. why.
then. is the operation not generally in
dulged in? Chiefly because individuals
here wishing TO bring gold from Europe
have 10 obtain the wheyewithal to do so
from the banks, and the banks are un-
willing 10 disturb the financial status quo.
which is considered to be so delicate in
London, by lending any money for the
purpose.
Great stress is laid by English financial
interests upon the probability that if gold
Is taken from London for American ac-
count an advance in the Bank of Eng
lands discount rate viii certainly follow.
Up to the present time our bankers have
been very forbearing in the matter.
Existing conditions in the case are how
ever obviously of the strained sort
GOVERNMENT BONDS.