The Washington herald., 1907-04-21
WALL STREET NOTES
Sharp Rally Comes in Last
Half Hour of Trading.
NORTHWESTERN STILL ACTIVE

Other stocks of Northwest Roads
Respond TO strength, and HiII
stocks Especially Are Affected.
Buuish Talk on Union Paciac Is
Heard ia London and Paris.
New York, April Golf IT had not been
for a sharp rally and a decided quekening
Of activity in the last quarter of an
hour t0-day's session of the stock ex-
change would have ranked with the
dullest and most uninteresting I'm recent
years. The complete change. which came
in the last few minutes, however, added
substantial gains 10 the quotations for a
number Of the leading stocks. and these
gains were attained so rapidly and so
entirely without apparent cause that the
session, instead of being wholly uninter-
esting, gave the trading element one or
tie most genuine surprises it has expert
enced even in this year of startling price
changes.
For a week there had been good, if
unobtruslye buying Of Chicago and North
western. and this continued to-day. al
though little more openly than before,
change in this respect being perhaps
necessitated by the fact that the floating
supply had become so reduced that the
buyers. in order TO get stock, were Obliged
10 come out IN the open and bid for t.
The reason for the absOrbtion could only
be sHfInised. but that accumulation was
in progress could hardly be doubted, and
this fact in itself was regarded as a fac
tor Of generally bullish import.
Just before the close of the market
the Hill stocks jumped into the first rank
Of the advance, and while some of the
activity which they displayed might have
resulted from the covering of shorts.
there is little question that buying of a
very good character gave the frst i'm
pulse and continued to lend It's influence
until the last transaction was completed.
In these stocks. as in NOTthwestern-th
has been for days "A degree of strength
that foreshadOWed an upward movement
of some pTOpOrtiOns-the ore certificates
especially showing a very strong tone.
Some buying of the latter probably re.
suited from realization of the fact that
the situation in the steel trade was such
as 10 call for a large output of ore In the
current year. All the Hill issues have
had heavy decline from the high prices
Of last year, and conservative interests
think fair recovery would be only
natural
Union Pacific advanced i'm sympathy
with the stocks OF the other Northwestern
roads, but there was nothing in the way
Of news bearing on it directly. nor was
anything wanted in view Of the fact that
at prevailing prices the stock returns
about Is per cent on the Investment
Gables received from abroad showed that
there was a recurrence in London and
Paris Of the buliish talk that had pre-
ceded the rise tn the stock two or three
weeks ago. There was a disposition 10
attach sood deal Of Importance to the
foreign attitude-although there was
really nothing to show what IL was based
on-from the fact that certain bankers
interested IN the property are now spend
ing a vacation In Europe while still
practically in touch with their associates
here.
The astoRishingly large Increase in the
loan account OF the associated banks. and
the accompanying increase In deposits.
which resulted in a substantial decrease
in the surplus reserve, induced some Of
the traders 10 turn to the short side OF
the market just as soon as the bank
statement made its appearance. These.
however, found reason TO regret their ac-
ton before the market closed. several OF
them being obliged 20 go home short. al
though they would have much preferred
TO follow their usual course Of winding
up the week without any commitments
on either side Of the market The gen.
orally accepted explanation Of the in
crease in the loan account was that a
large amount Of foreign loans on Ameri-
can stocks had been paid OF and replaced
by money borrowed from tie local mstl-
tutions. and that in addition to the trust
companies and out-of-town banks had
Withdrawn a considerable amount Of
funds, not caring to continue as lenders
under the prevailing low rates for call
money.
With all that has been heard about the
cuFtaiiment of expenditures BY railroad
companies. not d single instance can be
found of the abandonment OF an enter
prise on the ground that il was not war
Tanted by the business situation, and in
no case has new mileage. when completed
failed to come up to the expectations of
the management Of the road which built
it. All new facilities have brought in re-
turns more than commensurate TO the ex-
penses incurred. and the only reason why
the road cannot 20 on providing still
more with equally satisfactory. results are
that the money market is unfayorable for
the raising Of additional capital; that la
Dor is too high, and last and most, the
political interference in corporation at
fairs has alarmed not only the managers
of the railroads, but the holders of Sc
eurities who, under other circumstances.
would be willing TO put up the money for
additions to their property.
NEW YORK HANK STATEMENT.