The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-04-06
STOCKS STILL BOOM
Net Gains Larger Than Those
Made on Thursday.
FOREIGN MARKETS STRONG
Gold Reaching London from south
Africa Proves of Great Value to
European Northumberland OF
Bank Statement Also Gratifying
10 Wall street-Copper Leads.


ment to-day in the stock market gained
in breadth and vigor, and net gains in
prices were made in the leading stocks,
even surprising the large advances of
yesterday. The extremely pleasing fea-
ture of the market to-day was as was
notably the case at yesterdays stock
exchange session. strong. evidences of the
buying of stocks by the general public
and Of the fact that the advance was not
caused merely by the frightened retreat
Of a short interest
The foreign markets. particularly that
in London. were much hrmer to-day than
they recently have been. owing princi-
pally, it seemed, to the cancellation in
London of orders for gold shipment 70
this side made a few days ago.
This was primarily due 90 the rapid fan
in money rates here. which brought about
such rise I'm sterling exchange as to
make gold imports by our bankers un-
profitable. The truth is, of course, that
money at the moment viii do much more
good in London ana Paris and Berlin
than it will in New York, and the stop
page of gold exports from Europe, under
the circumstances, is, therefore, benefi-
cial factor SO far as our local security
market is concerned. Inasmuch as the
Bank Of England bought to-day without
hlndrance over 100000 in new gold that
was offered in London and viii probably
now secure without competitive bidding
all of the S6000.000 in gold that is known
10 be in transit from South Africa TO
England, the prospect for monetary ease
in the British capital brightens very con-
siderably.
sharp Rise in COnsOIs.
SO much more rosy. indeed, has the
financial outlook become in London in
the last twenty-f0ur hours that the pri-
vate discount rate there is now fully
half point below that of the Bank Of
England, and there was a sharp rise to-
day in consols and similar stocks, practi-
caily those of the great copper-mining
companies that have been such active
subjects of speculation All this led 10
predictions that if the reserves of the
Bank Of England are actually replenished
IN the way thus outlined the Bank of
England's discount rate viii soon suffer a
reduction. A more cheerful feeling, too.
prevailed to-day in Berlin and Paris. and
there was a cessation Of selling of stocks
here for foreign account
In this market enthusiasm regarding
prospective higher prices ran unchecked
from the beginning until the end Of the
business day Every development VS.
wholly in favor of values Aside from
the improved foreign situation, the fore
casts of the bank statement We're for
gain in cash by the clearing houses of
between $IZ00a000 and Sl250100.
Il viii De remembered that the bank
returns last week failed TO reflect fully
The strong position of tie banks as it
was then known 20 exist. and the only
cause that may serve 10 make to-mor-
rows bank statement less satisfactory
than was to-day expected may be that
the loan account of the banks may have
SO expanded during the week as TO can /
Tor a larger bank surplus to be held /
against a. II Is, however. to be borne in /
mind continually on this point that. owing |
10 the present system of compiling re-
turns the loans of the clearinghouse /
banks appear to be unduly swollen when /
rates arc low and 10 be surprisingly Ue- /
duced when money rates are high
On occasions when money is CHEAP the /
nonciearing house institutions. and par /
uculariy the out-of-town banks retire to /
a greater or less extent from the money /
market and their loans appear on the I
books of the banks m6sing report to the /
clearinghouse association. When money
rates advance. private lenders and out-of- /
town banks once more lend freely. and
loans disappear from the clearinghouse I
books
May Prove Deceptive.
Should to-morrow's loan account. there /
FORE. as finally reported show an increase /
il VIII not at an prove that there has been /
any great expansion of credit.
While the rise In the market to-day was I
general. attention particularly converged I
In the fore part of the day upon the Union /
Pacific, Southern Pacific and Reading
stocks and in the afternoon upon the
Amalgamated Copper shares. The gain
in the three frst-named issues was such
as TO cause great advance 10 be recorded +
in them since the beginning Of the week
without any Intervening pause TO speak
OF, and there was naturally, therefore. to-
ward the close of the day a good deal of
proft-taking in these issues Neverthe-
less, the stocks closed not far from their
highest prices.
The recent buying of the Union Pacific :
stocks has no doubt been greatly stinnu-
lated by the extraordinary earnings lately
shown by the Southern Pacific Company.
IN which the Union Pacific holds a con !
trolling interest, and the fair presumption
rs that before the year is out a much
larger distribution than that now made
must be ordered upon Southern Pacific
common stock, from which the Union Pa
oife Wiil of course, receive direct benefit /
No special explanation was heard to-day
for the advance in Reading. other than
that there has been i'm the last month an
accumulation of the stock by powerful
financial interests long associated with the
management OF the company
Tie buying OF Amalgamated Copper ap-
peaTed 20 bC based upon the magnificent I
business returns of the c0mnany. which I
according 10 all trustworthy observation. /
viii remain practically unimpaired
throughout the present year. 1t is prOba-
bly, true, also, that there is at present I,
more of a short interest in ANA samated
than in other active stocks in the security
list The stock has unquestionably been
heavily oversold by UNIFORMED specuIa-
tors. who hearkened to absurdly untruthfuI
stories regarding "a decline in the consump-
ton of copper metal and paid attention
10 fluctuations in copper prices in the
London market which have no bearing
upon the metal dealt IN here. The last
quotation OF the Amalgamated Copper
stock to-day was at the highest figure.
Sterling exchange to-day was q little
firmer, and money rates were reported as
unchanged. but with a still distinctly
easier tendency.
GOVERNMENT BONDS.
New York. Anil 5-Closii.u ,uofstions of Trrits5