The Washington herald., 1907-04-29
PRICES TEND UPWARD
Wall Street Market Almost
All Professional.
MONEY RATES IN DECLINE

Many Spectators 81 Crippled Con-
dstion as Result of Recent shrink
age-Crop Outlook Is CIouded.
clearinghouse Returns show Re-
auction in Bank Surplus.
New York. April 2s.-Although the dull
ness of the stock market was as equally
pronounced last week as it was in the
week preceding, the nrnness Of the mar
ket was so increased as 10 make notice
able a distinct upward trend In prices.
The market was still almost entirely pro
fessional, the buying and selling Of stocks
was confined to d limited number of IS
sues, and at the close Of the week opera
tons We're seemingly concentrated in only
two OF these stocks and were conducted
mostly by two or three of the large pro-
fessional room traders" on the floor OF
the stock exchange. No doubt thanks
for the rising tendency Of the market
were due more than anything else 70 the
continually easier working OF the money
situation.
Although no great drop occurred in cali
and time money rates during the week,
the plain disposition Of these rates was
10 recede; and few people win question
that if there was absolute certainty that
current rates for the use OF money on
call and on time were 10 be continued
throughout the remainder Of the year, or
for even the greater portion Of this
period, with general business keeping up
too, az its present rate. there would be
much less doubt about the future of the
security market than now exists.
The fact is, however. that the market
at present has two very plainly dis
tinguished sides. In favor OF the market
is It's liquidated condition and the ease
in money that bids fair 70 rule for some
weeks at least to come. On the other
side, in the first place, IS the crippled
condition Of so many spectators and IN
vestors. who have incurred such losses
in recent months or nave seen such
shrinkage in the value Of securities
actually owned. that they are either not
able or are unwilling to buy any more
stocks just now.
Crop Outlook ClOuded.
The outlook for the crops is al best
clouded. political contingencies affecting
values of securities are coming 10 be
more and more clearly apparent. while
/ the All important question remains to be
answered as 10 what measure Of business
/ contraction, If any, is at hand. II hardly
seems. in spite Of the more hopeful feel
/ ing that has become engendered among
! spectators during the last fortnight, as
/ if the time were ripe for any sensational
buying movement In either bonds OF
stocks.
While the money situation is greatly re-
/ Taxed at the moment. it is not at all GER
/ tain that it Will continue or that IL il
does so continue il will not be preceded
/ by a general slowing down Of business
| The causes contributing to the fan "a
/ money rates. those chiefly consisting OF
! the large deposits Of public money in the
national banks made by the Secretary OF
the Treasury. are well understood; but
attention has not perhaps been sufficiently
| paid TO another factor in the matter, the
small demands for money now making
/ by the Wall street commission houses.
Rates Tend tn seek Level.
! If this demand should enlarge would
/ there be money enough to finance q
great rise In stocks2 The truth about tat
money market at present is that money
rates all over the world are tending 10 q
state of equilibrium, that is, that money
is moving from places where there Is an
abundance of funds 10 quarters where ac-
! commOdation is more desired. II is plain
/ moreover, that all these movements fol
/ the time being converge upon the New
/ York market.
The banks of England and Germany re-
duced their discount rates last week. but
/ these rates are still higher and the cash
! reserves Of the two institutions are lower
than they have been at any corresponding
period for long time back. The Bank
OF France. taking advantage of the easier
state Of affairs in London. is asking re-
payment OF the loans made by II TO the
| London market late last year, while oul
own English creditors are in turn asking
US to pay of our own borrowings, viii
the result that sterling exchange here
has risen TO a point that almost allows
gold exports.
Bank Surplus Lower.
/ The returns of the clearing house fo
the last two or three weeks have exhib
tied a great reduction of the bank surplus
reserve here, this being due, OF course
to the enlargement of the bank loan ac
count caused by the transference TO tn
national banks OF loans formerly mad
by out OF town lending Institutions an.
now withdrawn because of the decline il
money rates. The logical outcome o
these various processes is higher none.
rates in this market. although such a.
advance can hardly be said to be immi
nent.
Bearing very poi1tedly upon the sam
subject is the condition of the natiOna
banks of the country as shown in the re
port made to the Comptroller Of the Cur
rency under his call for such an exhibi
! as OF date Of March D. As compared Wit
a year ago the cash in the banks has in
creased only s35 600. 000 while bank loan
have increased 1894, 900, zoe.
Only one inference is possible from this