The Washington herald., 1907-03-28
WALL STREET NOTES
Easier Feeling, as Fear of
Panic Is Now Over.
MARKET IS NOT YET STEADY
sharp Breaks and Erratie COndi-
tions Experienced in Many Issues.
Concerted Attack on Erie Brings
Price 40 Lowest Point that Has
Been Touched for Years.

New York March 27.-In banking and |
brokerage Offices an easier feeling pre- |
vailed to-day. the assured avoidance OF a |
relapse to panic conditions having dis |
PEELED the apprehension which for three
weeks has been wreoking nerves as
well as quotations. For the first day
in the entire three weeks there was
not the faintest rumor of failures. and
there was almost an entire subsistence
of the loose talk regarding the shaken
financial condition of various corpora
tions.
The market. while rejecting to some
extent the renewal Of confidence and as
surance, was still far from being steadied
10 normal conditions There was wide
range of prices between the high and the
low, and sharp breaks and erratie spurts
indicated the effects OF panieky eondi-
tions. There was extensive bear covering
In the morning, accompanied, very likely
by a practical withdrawal OF support ia
terposed by big interests the preceding
day This withdrawal OF support, how
ever. was not of sufficient Importance to
check the upward course OF the market in
the morning, but it was felt in the after
noon.
Broker. generally agreed that ii would
be several days before the market reached
normal conditions, and meanwhile, antici-
pating erratic movements, many Of them
advised their customers that the only
profit likely in the immediate future would
be obtaInsble only By endeavoring to get
in and out with the rallies and reactions.
Few traders were willing TO commit them
selves TO a sustained position On either
side. In most cases they referred to
post-panIe experiences in the past. and
there were many predictions that when
the market steadied itself It would grad
ually become dull and inactive.
Erie was the feature OF the afternoon
trading. A concerted attack on 1t was
accompanied by rumors that the direc-
tors were perplexed over the financial af-
fairs Of the company. and particularly
over the prospects Of renewing notes ma
turing in the near future The attack
was made Just as the market began to
turn and the common, which had sold up
to 26is. a gain OF = over Tuesdays closing.
broke sharply 70 gla The figure is low
record for many years. Concurrently. the
first preferred declined from SO 10 5I15.
and the second preferred from 30 TO Sel4
Erie directors were in session while the
stock was under attack. and ali the re-
ports had it that they were concerned
over the situation.
The directors. IL appeared subsequently,
took up only routine business at the meet
ing, and 1t also became known that ar
rangements have long been made for
whatever financing the Erie will do for
some time to come. AS has long been
known. the company has outstanding
about $500 900 In notes made last fall
The first OF the notes natures in April,
and there is said TO be no question that ali
provision has been made for their retire.
ment or renewal.
Provision has also been made for the
payment Of the second preferred dividend
next month. The next stated time for
declara ton Of the dividend on this stock
( is not until fan, and since the payment Of
the present rate involves an annual ex-
penditure Of but $50 600. It does not seem
at all likely that Il will be discontinued.
For the seven months ended January 81.
1 the net earnings of the company were
/ s., ,g3s. GOO somewhat in excess Of those for
the same period in the preceding fiscal
year. In the preceding fiscal year, It was
also pointed out by an Erie official. the
tcompany expended about s., ,C00,e00 of the
net earnings on additions and improve
ments IN the preceding year As is well
known. it is not the policy of the company
/ TO make such expenditures in the current
year.
.~, - .-,,.~,5 4a~zs ar,o,,nfS "a
the 81, 900 deposits from customs au-
thorized by the Secretary Of the Treasury
the preceding day, and there was a con
siderable increase in the number of gov
ernment bonds sent on for redemption
/ All of them were making arrangements
for the April I interest and dividend dis
/ ibursements, but the amount of new money
was considerable enough. Notwithstanding
TO bring about great relaxation In botf
cali and time money rates, Renewals O
call money were made at per cent, anc
in the afternoon there were loans a.
low as 3 per cent. IN time money Their
was greater activity than In severa
weeks. Loans were made freely at rate
generally II Of / per cent on those o
the preceding day.
The decline in St Paul in the afterooI
was attributed in part to the death o
James Henry Smith, Prior 10 his re
tirement from active participation in tn
management Of the road, Mr.. Smith wa
one Of the largest holders Of the com
mon stock Subsequently he sold out al
his common and purchased preferred
so that if the market for the common
was affected by his death. the selling wa
due TO a misapprehension
The value Of Mr. Smiths estate, 1t wa
! said. could not be determined until tn
adjustment OF the book value Of his sc
curities was ascertained. There ha
been a shrinkage of over $50 a share Il
the preferred since Mr.. Smith started o.
his trip abroad.
Not a single railroad president mad
a public statement in the entire day.
. The banks were understood to hgv
persuaded the stock exchange governor
of the advlsability of keeping the OK
change open on Good Friday with tn
I exchange closed that day. though ope
Saturday loans made to-day would hav
carried over until Monday. Closing tn
exchange on Saturday. on the other hanc
will not at all disturb the routine. Fri
days loans carrying over to Monday a
all times.
Secretary Cortelyou's action produce
the expected result in reassuring Londo
sentiment. Convinced that New Yor
would not raid London for sold. tina
: center maintained a strong market fC
Americans and bought freely in this maj
ket A little bear sentiment was create
out Of the London situation, however,
I cables announcing two failures and r,
: ports that traders checks had been r.
: turned At the same time the cable
reported the failures entirely moons.