The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-04-09
STOCKS STILL BOOM
Despite PrOft-taking, Active
Issues Are Strong.
LONDON CONTINUES TO SELL
Financial Strain This MOath Is on
the Other Side of the Atlantic.
Smelling, Anaconda, and st. Paul
show Greatest strength-RaiIrOad
Congestion Practically over.

New York. april 8.-Prices Of stocks
to-day continued TO reflect the profit
taking movement. which became very
notable in the security market after the
publication of the favorable bank state
ment last Saturday, and which was nat
urally invited by the great adyanee~With-
out reaction for several days previously.
This was followed to-day by a further
liquidation for London account precedent
10 the beginning of the fortnightly Lon
don settlement. in the English mar
ket, and a good Illustration of the
change in conditions that has recently
occurred in affairs here is derived from
the fact that during the past week there
have been sold, as is estimated, between
10000 ana 150,000 shares here for the ac-
count of English operators, without at
feeting materially the rising tendency Of
values here.
1t is obvious. moreover, that now that
such a great transfer of stock from
Europe to this side has been successfully
completed, that the general situation has
been immensely benefited. According to
ali competent observation, the financial
strain of the month is really greater on
the other side of the Atlantic than it is
here. Any occurrence which tends to
ease matters in London and Berlin is an
event of highly favorable Importance. so
far as our own market is concerned.
Rally, Then "a Decline.
After the opening weakness to-day
prices here rallied sharply. but again fell
on so that the lowest quotations of the
day were commonly made in the first
afternoon hour Of business. and the de-
clines at that time ran between one and
two points in the active stocks. that
making. with the fall on Saturday, a. large
recession in many prominent instances
from the high level Of the recent upward
movement.
After this, for a considerable period. the
market became extremely dull. showing
that at the decline no voluminous guam
tity of liquidation was noticed, and that
after such a drop spectators for the fall
were wary about attacking the market
and in the last an irregular recovery set
in, wiping out large portion of the pre-
vious losses, so that. although the market
closed with declines predominating, adj
vances were shown in many of the active
Issues.
The strength of the American Smelling
and Refining shares was the salient fea-
ture of the days business, these rising
nearly three points and holding their gain.
and the impression seems to be general
in good quarters in the financial district
that an enlarged distribution upon these
shares is probable at no very distant date.
and the belief is, in fact, that dividends
viii soon be paid upon them at the rate
Of 10 per cent. Other particularly strong
stocks to-day were Anaconda and St
Paul, while the little-dealt-in Union Pa
eifc preferred stock rose % points on
sales Of only so shares.
The only real development which should
have properly affected the stock market
to-day was further evidences of increas-
ing ease in the local and international
money position. Call money borrowings
to-day were commonly renewed at . per
cent. and while no quoted concessions
We're made in the rates for time money,
funds for long periods could be obtained
with greater facility than at any time
heretofore during the present year. Lend
ing Institutions almost uniformly repre-
sent an unwillngness on the part Of
borrowers to make time engagements at
present figures. and that the general ten
dency of Ume-mOney rates is toward d
lower range.
Money Easy in London.
Deposits of money with the local ma
tional banks paid into the government as
the result OF customs collections are still
proceeding. and it is the unquestioned de
sire of the Treasury Department to con
tinue these deposits currently. In London
the ease in time money to-day became 50
pronounced as TO result in another reduc-
tion in the discount rate in the open mar
ket there. bringing this rate down TO 4 per
cent as against the per cent rate of the
Bank Of England, and it is generally ex-
pected in London that the English Bank
rate viii be reduced to per cent at the
coming meeting of the directors on Thurs
dag.
The Bank of England to-day secured
without difficulty S.7500o0 in gold offering
in London. and now that sterling ex-
change here has so risen as to preclude
gold exports from London. the anticiDa-
ton is that the condition of the Bank of
England VIII be very rapidly strength
ened. In London to-day the market for
raw copper metal advanced. as did the
shares of the Rio TintO and other promi-
nent copper mining concerns.
Cheering reports were received from the
West to-day To the effect that the conges-
tiOn on the railway lines which has been
already in progress there has now ceased
and that traffic is moving in great volume.
Difficulties of this kind still affect the
trunk lines, but there is little doubt that
the railway blockade so long general
throughout the country is on the point of
disappearing.