The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-04-06
WALL STREET NOTES
Power of Market
Continues Good.
UNION PACIFIC STILL STRONG
Little Attention Paid Ia Commerce
Hearing In WaShiBgton-sOath
Pacific May Be Placed ON Is Per
Cens Basis-Foreign Investors TAX
ing Great Northern stock.

&NfR ADAAs 4AAt4A ~ III Adii filNBEt
lending at about per cent. brokers
showed no particular inclination 10 borrow
time funds. and as the supply OF these
was fairly large. there was a further
shadowing of rates. Some of the banks
expected that domestic exchange would
turn strongly in favor Of New York With
in the next few days on account OF the
.semi-annual settlements by dry goods
merchants who purchase their supplies on
terms requiring payment on April 10 and
October TO- with 2 per cent on for cash
On account of the money situation. cash
payments this season have been smaller
than usual, and. therefore, the amount TO
be paid on or about April 10 will be un-
usually large. The effort, of course, win
be to bring money TO New York from all
parts OF the country
Expectation regarding the forthcoming
bank statement was that the figures would
make a favorable exhibit The prelimi-
nary estimates of the movements of cur
rency indicated a gain in cash by the
banks Of about Sl2. coo. but in some
banking circles it was said that the gain
in cash might TO d considerable extent be
offset by a heavy increase in loans, both
on account of the activity ana the advance
in the market. and the fact that the trust
companies usually cease 70 lend on call
when the rate drops as low as it has been
in the past couple of days. As, however,
both these factors have operated more
strongly iu the latter than in the earlier
part of the week. their greatest effect
may. under the average system. be shifted
over To- the statement to be presented
week from tomorrow.
Right from the opening Of the market
there was a good deal of short selling by
the traders who believed that after ii
rise that had continued without any con-
siderable interruption for more than a
week. during which period advances Of
as much as 10 or 2e points were made. the
time must be about ripe for a reaction.
The absorptive power of the market.
however. seemed 10 be as great as on
any day this week. and those who were
early sellers Of such issues as the coppers
and Hartman stocks found reason to
repent their action before the session
SAANNA- A4AN -Ns'A llthatS AT POI III AitAA
the buying was not all professional by
any means. and that instead Of the CON
tigCed advance having scared away Gus
toners, it had the effect of helping 10 re-
store confidence and bringing in new orders
for purchase OF stocks. That there was
a good deal of manipulation was pretty
generally admitted, but as it was of the
constructive Kind, and yielded results
most CT the commission houses would
have been perfectly willing 10 see more
OF ii.
History is now repeating itself. for those
VINO would not buy on the break a week
ago are eager buyers on the rise. This
is the old story, and it is equally true Of
the speculator and the investor.
What the news WAS tha1 set Paris and
London bullish on Union Pacific and st
Paul at the end OF last week has never
leaked out here. but the effect OF it was
again i'm evidence in both stocks to-day.
In Union Pacific there was the added fac
tor Of a large short interest which con
ubuted TO the rapidly with which this
issue advanced. After she stock first
crossed 40 the rise was checked by sell
ing executed through prominent house.
but as soon as this supply became ex-
hausted the advance was resumed more
briskly than before About an that was
heard ia the way Of bull arguments was
a report which was sais 10 have ema-
mated from high quarters. TO the effect
that the present 10 per cent dividend rate
could be maintained under any conditions
IN the railroad business that might be ex-
pected 10 arise. Comparatively little at
tention was paid TO the arguments before
the Interstate Commerce Commission i'm
Washington, although il Is possible that
the timing of the movement TO the areu-
ments OF counsel for the railroad interests
was intended as an lntimation that these
were very well satisfied with their case.
As the Southern Pacific statement indi-
Gated earnings for the year equal to
about Is per cent on the common stock
it was not extraordinary that encourage
ment should be derived therefrom for the
expectation that this issue viii in August
next be placed OF a 6 per cent basis.
leading houses having important con-
nections in London received cables from
that city reporting a feeling of encourage
ment over the Improvement in Americans
and the great ease in money in their own
center as well as IN New York. The re-
sale OF the gold bought a couple of DAYS
ago for import to New York was re-
garaed with satisfaction both here and
abroad. for had the shipment been actu-
ally made if would have amounted TO
the metal from point where it
%as wanted TO a point where it was not.
On the rise in Northern Pacific and
Great Northern there was considerable
buying for foreign account. and it was
rumOred that Mr.. Hills English following
had not parted with any considerable
amount of the stocks. either before or
turing the slump. and that as their policy I
seemed 20 be to reduce the average price !
1f their holdings by buying at this level. (
L was entirely probable that they would
soon be holders of these, isues to a larger
extent than ever before. The statement
vas made during the day on good author /
ty that the record of transfers of Great 1
Northern showed that stock had recently /
ound its way into the hands of upward /
II 800 new investors. who took it in /
amounts running from 10 shares to 100 /
shares and above.
The move in Reading that broke off so /
suddenly on the preceding day was re- 4
umed. and carried the price up 20 above I
Is level Of March /, when Union Pacific
vas selling at about 40, Amalgamated
Upper in the neighborhood of 10. and
iteel common at about A. The advance
orced considerable covering Of shorts. bur
here was little or no indication that the
trong interests that have again come into
possession of nearly all of the floating
upply of the stock availed themselves
f the opportunity afforded to take profits.