The Washington herald., 1907-08-14
WALL STREET NOTES
Investment Buying Results
in Strength to Market.
APPEAL TO SECRETARY ROOT
Leading Bankers Believed to Have
Sought Conference with AdminIs-
tration officials in Hope of Giving
Stability to the sIarlset-Pessimis-
tic Feeling Is Somewhat Relieved.

New York, Aug 1S-In the early trad
ing to-day many of the shorts began
covering on what they considered the bad
news of an interview with John ID.
Rockefeller; with the Standard OIL mag
nate quoted as saying that ''The run
away policy OF the present adrninistra-
tions means disaster to the country,
financial depression. and financial chaos. -
Traders satisfied with their profits fig
ured that many holders would be i'm
PEELED TO liquidate.
The traders reckoned on buying this
liQuidating stock to cover their contracts,
and many OF them were of the opinion
that very extensive short covering could
be completed without bringing about
a very brisk rally. The idea worked
well IN the morning, for, despite a large
amount of investment buying, whatever
covering took place up to noon was
transacted rather easily.
Many Of the professionals were en-
couraged by this development TO put out
new lines. and the market, after q bit
OF rally. was sagging. when the reports
Of arbitration between Washington and
Wall street broke out afresh. These re-
ports changed the then blush complex
ion.
Commission houses concurred in the re-
port that investment buying Wis much
greater than had been expected. It was
mostly IN odd lots. but IN the aggregate
It was greater than on any day since the
March panic though not OF as -eonsid-
eTable magnitude as then occurred. The
public apparently had waited until prices
broke well below the March figures be-
fore sending in its orders IN largo
amounts,
Many OF the orders, Il was noticeable
yesterday. We're srom officers OF small
interior banks and from small merchants
in the Interior. and, as Is customary on
such occasions. they came In every
imaginable form. One broker had an
order TO buy Ave shares each OF thirty
stocks, which the customer may we'll have
spont the entire summer IN picking out
Others We're not so definite. One GUS
toner wanted his broker TO buy twenty
shares OF a stock now selling above par
whom II got twenty points below par The
commission In this case looked a bit too
Indefinite TO be satisfactory for a practi-
cal man.
Among the sman-lot orders there were
many selling orders.
Every commission house bought largely
on balance IN its smaIl-lot business
Reports that Secretary OF State Root
and Assistant Secretary OF State Bacon
were in conference with leading bankers
with q view OF ameliorating the feeling
between the street and the administration
made their appearance at noon.
They were followed by a multitude OF
variations, An agreement had been made
that the banks were to support the mar
ket n return for the deposit OF govern
meni funds during the crOp-moving sea-
son,
Tn, administration was To check Atter-
ney General Bonaparte, or at least modify
some Of his utterances, Conferences were
70 be held Immediately, with every pros
pect that they would result IN better
understanding OF the real import of the
administration policy. Men in the mar
ket believed the reports with a close ap-
preach to unanimity, It mattered not that
frequent denlals were made of AIr. Roots
presence In the financial district and expla-
nations that Mr.. Bacon was not there In
y
elimination Of the reports had a beneficial
effect In mitigating the pessimistlc feel
ing prevalent for many days, and even IN
spreading the impression that matters
might not be- in such bad shape after all.
They impeiled q rush 10 cover on the
part OF the shorts and brought about a
rally that continued strong and suhstan-
tial until the close. Stocks rebounded
with greater resiliency than many had ex-
pected.
The leaders in the advance were the
stocks that had been leaders in the de-
cline Steel common was conspicuous in
a recovery Of 65S points to S2H. Other
stocks which ordinarily move with greater
rapidity than does Steel, hampered by its
great bulk. made greater though not moro
impressive net gains. Shelters, the Cop
pers, the Hill stocks, and the Harrlmans
We're prominent among them.
Little attention was given TO the prao-
teal failure Of the city bond sale. It was
rot felt that many bond houses OF the
financial district would make bids, and tia
outcome disturbed no r,rooor,o{,-oa