The Washington herald., 1907-06-04
WALL STREET NOTES
Buying Begins as Levels of
March % Are Neared.
BEARS MADE UNCOMFORTABLE
Market Refuses to Grow PnniCky,
and the shorts Are Forced To
CoVer-Union Pacific Finds Good
Support-Weakness of the Amalgn-
mnted Copper Is Explained.

New York, June 3.-The day may have
had something TO do with it. but at all
events there was not a single streak in
the pessimism that overhung the market
at the opening to-day. Outside all was
lowering and cheerless 20 a degree, and it
may be that the effect was reflected in
the cherries views which the brokers
took Of the financial outlook. They could
see no prospect but lower prices, and all
the dark spots in the situation took on
deeper hue in the prevailing gloom. All
the old and nearly forgotten rumors of
the trouble was revived and given a de-
gree Of significance that they never at any
time deserved. and which. less than for
merly, they deserve now.
Any old thing served as a preteXt for
selling stocks. and the transactions IN the
first half hour or SO far exceeded those
for the corresponding period in any other
recent day. But for all the pessimism OF
the trading element. there was good sup
port for some Of the leading stocks. and
the bears. who We're the principal sellers,
began TO question whether the stocks
they had sold had not gone into a bag out
OF which IL might not be easy TO get them
for covering purposes. Naturally, such
doubts had the effect Of restraining the
selling order. and with the decrease Of
selling pressure it became evident that
the undertone Of the market was fairly
strong.
Some brokers professed to see evidence
OF organized support to the market when
the average price Of the active issues
dropped back to the low level Of March
-. Whether there was really any organ
lied movement 70 support the market
could not. of course. be definitely deter
mined. but that there was an increase
IN the volume ~ good buying where the
trading element had expected 20 find a
decided increase I'm the volume of iquida-
ton was a matter about which there
could be little or no doubt The bears
could not understand IT, and felt that IL
was all wrong.
For days they had confidently asserted
that if they could get prices back TO the
old level Of March g. the lowest Of the
year so far-the bottom would fan out of
the market They had industriousiy
worked 10 that end. and were simply
dumfounded when they found the event
did not justify their calculations
or course the market had no right 20
rally after ii had gone back 10 the lowest
levels of the year It's action in SO doing
was most unseemiHg. and In complete
conflict with all rules and formulas made
and provided. According 20 the first rules
OF a game. a decline % the old level should
have brought great outbreak of liquid3-
tiOn, both from those who had suspended
operations of that kind when an advance
in prices ENCOURAGED them with hope of
permanent Improvement. and from others
who had not before been reached. but who
were not prepared 10 risk the danger Of
"a decline 10 still lower levels.
But the rule was disregarded and tho
market, instead of going down further. as
il should have done. stifeutd and then
rallied with the most extraordinary per
yersity. Some Of the traders We're 50
much disappointed with the stocks dlsre-
gard Of ali recognized forms and prece-
dents that they felt Ike retiring from the
game until normal conditions were re-
stored But there was the trouble To
retire would have involved buying 20
cover shorts, and buying for any purpose
would have involved an advance in prices
So the shorts resolved upon course of
action something ike that ~ the ostrich
when hard pressed and by shutting out
from their sight the evidences of a sold
out condition In the market. walled them
selves around with a feeling OF security
that was not very substantial
OF the bcarish rum0rs circulated In the
first half hour, not one had any truth
whatever. The most widely circulated,
and the most influential Of all. was that
which told Of the alleged difficulty Of a
bond house. without mentioning the name
Of any Individual firm This was. Of
course, only a repetition Of a former
rumor that has already grown very
familiar. II had done service on several
previous occasions in the past six months
and that it should have been brought out
again was not surprising in view Of the
prevailing peSsimism and the recent de-
cline in the bond market combined with
the evidences Of the apathy Of the in
vCstmeut house toward that class OF Sc
Curity.
There is not a bond house in the street
that will not cOnCede that business in
the past year has not been satisfactory.
Every one of them have made prepara-
ti1ns long ago for a lean season, and all
are prepared TO encounter any kind Of
hard times in the investment business
that need be apprehended.
Reading was one of the first stocks to
display strong support. This was met
with when the stock sold down 10 81. soon
after the opening, and it was never re
linquished. being always encountered
every time the price dropped 10 that
level.
At Y o'clock the most significant SUD-
port was encountered in Union Pacific
The insiders appeared TO be willing 10
trade any amount Of the stock at that
level, but showed little disposition to
follow up the advance. The object Of the
support seemed TO be TO discourage opera
tions for the decline and restore conf
dence to those holders who had begun
10 liquidate, and. being attained. the