The Washington herald., 1907-08-21
MARKET NOW EASIER
Short Covering Follows the
Presidents Speech.
SOME ASSURANCE IN TALK
Reference to "Certain MaIefactOrs
of Great Wealth" DIspIeases wall
Iarify, Active Leading stocks
Close at AdyaRse on the Day.

New York. Aug. 20.-Encouraged by the
declaration in Secretary Tafts speech
that the President. in prosecuting his
campaign against the corporations, did
not propose to "trip up past transactions" Z"
speculative interests in Wall street ar
rived at the conclusion early this morn
ing that Mr.. Roosevelt would give further
'reassurances" Of the same kind. and
began. almost at the very opening of the
market 10 lay their plans for movement
against the short interest the existence
of which was clearly shown by the
scarcity OF stocks in the loan crowd.
Does Not Like Presidents Rap.
The Presidents speech was not pub
lshed in the street until near noon, but
by that time a number Of speculative op-
orators had been induced 10 undertake
commitments in the market which in
duced them to look only for favorable
points in the address, and to put the best
possible construction upon all of it. Even
in. this temper, no consolation could be
found in the main body of the speech that
spectators affected 10 find encourage
ment IN an addendum. in which Mr..
Roosevelt referred to the break in the
stock market, and asserted that for this
the governments policy could not be held
responsible.
In all but speculative quarters, how
ever, this addition 10 the speech was not
regarded as at all likely to help TO a
restoration Of confidence for the state
rnent that certain malefactors Of great
wealth" had combined ito bring about as
much financial stress as possible, IN order
TO discredit the policy Of the govern
1nent," was considered not only unstates-
manlike but foolish in the extreme,
Traction Stocks Fare Badly.
The market was irregular al the open
ing, a few stocks being higher than last
nights close, while Reading and Union
Pacific were each of more than a point,
and ST. Paul, Southern Pacific. Great
Northern, Brooklyn Rapid Transit and
several other of the active issues were
fractionaIly lower. Heaviness prevailed
during the first hour, and In some Of the
inactive issues there was very little sup
port.
Liquidation appeared to be under way in
Union Pacific. and the stock at one time
dropped 2la points from its opening quota
IiOn, Notwithstanding a moderate volume
of buying for London account The trac-
ton stocks We're conspicuously weak, In
terborough Metropolitan common and
preferred making new low records while
Brooklyn Rapid Transit sold down to a
lower point than it had before touched
in nearly four years. On the curb a break
Of g points occurred in American Tobac-
co, the stock selling down to 2l1 against
the high record Of SO made last year.
Foreign Markets Heavy.
Abroad, the markets were heavy. and
little doubts were anywhere entertained
that the Bank Of England rate would be
increased to . per cent on Thursday. An
engagement Of 10000 gold was made for
shipment 10 Hamburg, and 1t was be-
lieved that further shipments would fol-
low If the metal could be spared. The
annual report of the Louisville and Nash
vile showed an increase Of $5254,923 in
gross earnings, but the gain of only $l02,-
147 in surplus after charges, the higher
cost Of operating practically offsetting the
increase in business.
Short covering which started on the
publication of the Presidents speech,
either on the ground that Mr.. Roosevelt S
utterances contained some assurances, or
that the worst had become known, CON
tinued TO the end Of the session, and most
of the active leaders closed at a substan-
tial advance on the day.