The Washington herald., 1907-03-10
DEMAND FOR STOCKS
Market FeyeriSh and Prices
Lower, but Buying Active.
SEVERE DECLINE IN LONDON
Effort to influence Sentiment on This
Side Rather Futile - Prediction
Made That Bear Panic Is About
Due-Rapid Recovery Probable ns
Result OF Sustained Buying.


can stocks suffered n severe decline in the
London market in the early part of the
session. but recovered somewhat before
the close as result of buying for New
York account possibly intended to infu-
ence sentiment at the opening of the mar
ket here. Notwithstanding the recovery,
however. London still showed some heavy
declines at the close, Union Pacific being
notably weak, and it was. therefore, with
a feeling of relief that initial transactions
were made al prices not very far from
those of Friday evening.
Some stocks in fact, such as Reading
and Pennsylvania, opened at considerable
advance Union Pacific and the Hili
stocks were among the weakest in the
early dealings. for while the latter open
ing was well above the London level, Il
soon dropped down to it and continued
heavy during the remainder OF the ses-
sion. The heavy selling OF United States
Steel continued. but good support ap-
peared to be met with on the decline, and
the stock rallied with some vigOr toward
the close. helped probably by the fact that
there appeared TO be excellent buying OF
the preferred every time II dropped below
par.
The Hill stocks were weak without any
special reason, but St. Paul and Pennsyl-
vania. while actively dealt in, showed
considerable degree of strength The
market throughout the day was feverish,
but there appeared 10 be better demand
for stocks than yesterday or the day be-
fore. and the bank statement. although
much worse than had been anticipated,
did not cause an increase in the volume OF
liquidation. although the surplus reserve
Of the associated banks is SO low for this
time Of year as 10 make it practically
certain that the money situation must
continue "a more or less disturbing factor
for some time 20 come.
No Cause for Declines.
For the sensational activity and extreme
declines in the stock market this week no
cause certainly was found in any new de-
vaIopmeat of financial Importance. What
has been witnessed in the market seem
inglv. has been no more than an intensi-
neI form Of that same depression of senti-
meut that has been the controlling iutiu-
elcc upon prices for many months back
Attention in Wall street converged only
during the week upon the trend OF the
stock market itself and the outpouring
of securities that was in progress. \
matter greatly discussed was, Of course,
the probable extent TO which speculative
selling Of stocks for the decline had
layed a part in the markets general
movement. The most casual observer OF
stock exchange transactions could not
fill TO notice the haring evidences of bold
ana widely conducted operations fer the
ifIi that were constantly predicted Ii
would therefore be not at all surprising
AID should fu fact ne "a matter of def
uitr expectation, that there should come
~ any tirN Utw "a vigorous rebound IN
uI5ar iu the eh4pe Of bear panic as
Wall street calls IL. caused 10y the dis
eoso:y THAI the floating supply of some
one or more Of the active stocks in the
course of its long fan has passed into
sVch permanent hands as TO be praCJi-
csliv coTnered.
4 brief forecast of an experience Of this
so- was afforded in the market Wednes-
day. when the Reading common shares
rose II points in q few minutes, owing
10 the vulnerable position in which these
Ieopla found themselves, who had sold
:Nares cf the stock that they did not own
t'a The other hand, il must be admitted
with equal readiness that all this purely
speculative selling stocks has induced
goat amount of real liquidation.
As tnc market has gone on dropping
HcHer and higher grades Of spectators
for the rise have heen forced TO close. or
greatly reduce their accounts. and so far
as has yet been shown those who have
been attacking the market have been en-
abled except on one or Two occasions. to
easily retire their commitments for the
dcc''n- IT profit. Indeed. It must Zee
said that on the face Of things practically
fl, ul- support tldt seems 10 have been
extended 20 the market has been the
covering purchases of operators Of the
class described; and in the reason for this
lack of buying OF other nature lies the
general explanation of the current weak
ness of the market itself
Dividend Return Good.
1t is. of course. perfectly clear that at
such prices as were touched to-day for
the standard railway shares which as
sured a dividend return on the securities
in many instances Of from 10 per
cent. there would have taken place, under
ordinary circumstances, such an accumu-
lation Of these stocks for investment as
would have puj an end TO the declining
movement in short order, nor is there
any doubt that il might have been said
weeks ago as Well as to-day that the
price of the principal stocks on Wall
street market had fallen TO Il level where
81 could he said that they were cheap,
even with every adverse factor against
the market taken into consideration. Why.
then has not the decline been stayed?
II Is DlUDdDitr III the III Isl UidtNt ttiaA
financial interests of the first rank. see
ing the furiousness that the selling move
ment was developing. concluded. some
time since, to let this movement exhaust
itself, or begin 10 exhaust itself before
hey began 20 exert themselves TO stop
il The wisdom Of such "A decision has
time and again been proved in the past.
II is To be remembered. also, that the
greater number Of people who have been
active I'm the stock market I'm the last
few years are not at the moment as able
10 make purchases as they recently have
been.
They have made great losses in the last
twelve months, and have bought securi-
ties frequently during this period at times
when it seemed as If the declining
movement had spent its force, only to
find that their judgment was mistaken.
II is inevitable. therefore. that they
should now be in a more sparing and
cautious mood
In the third place. the great banking
interests in the financial community are
undoubtedly still hampered in consider
able degree by the financial obligations
OF a so-called syndicate character pre-
viOusly entered into Nearly all OF them
possess securities or have contracted to
buy securities at higher prices than those
that now prevail which, although of
unquesuoned value, are not at the mo-
ment readily salable. Naturally many Of
them feel that they do not. under the cir
cumstances, care TO enlarge their hold
ings Of stocks, however tempting are The
prices at which these stocks are offered.
GOVERNMENT BONDS.
New York March e-Closing quotations Of United
States government bonds;
Bid Asked