The Washington herald., 1907-02-12
WALL STREET NOTES
Secretary Shaw Offers to Buy
ShOrt-term Bonds.
MARKET RETAINS STRENGTH
Need for Apprehension Regarding
supply Relieved by bid for S25,-
100000 Worth of short-term Paper.
Sugar Continues It's Advance-Great
Strength in Copper Stocks.

New York, Feb. 11-About the middle OF
the first hour Of business yesterday a
member of one of the largest private
banking firms in New York, discussing the
money situation. said
There would be no need for apprehen-
sion regarding the supply of money if the
Secretary Of the Treasury would only de-
eide to purchase large block Of the short
term per cent bonds. That would be
very proper thing for the Treasury TO do,
and It would remove whatever grounds
there may be now for anxiety or uneasi-
ness
Half an hour after the statement quoted
above was made. announcement appeared
on one Of the Wall street news tickers
that Mr.. Shaw had decided TO make an
offer TO purchase 81, 100000 OF the bonds at
lMH That the announcement was not en-
tirely unexpected might perhaps be in
ferred from the bankers statement al
ready quoted and from the fact that the
stock market had during the morning
maintained characteristic Il quiet
been expected by most traders who
thought that after such weakness as was
felt on Saturday. little in the way OF
rally could be looked for. especially as the
impending holiday and the London settle
ment did not favor the commencement Of
an upward swing.
Bankers were divided in their opinions
as TO whether the offer would be accepted
by the banks which hold most Of the
bonds. but She belief among private bank
ers-whO. however. do not hold many OF
the bonds-was that the payment of
price now. that vas only 0ne-half of per
cent less than what would be paid next
July. plus the April and July coupons,
would surely fetch IN large amount
The traders have become so accustomed
TO getting whp-sawed in this market thar
they now take it almost as a matter Of
course. They have just taken another
treatment of the usual kind, and have
added 10 their chapter of experience, snil-
ing as if they liked H. Usually, when they
are on the short side Of the market neay
the end Of the week, they cover uD on
Saturday, especially IL a bad bank state
ment gives them a favorable opportunity
OF doing SO. They departed from their
usual custom last Saturday.
They could do nothing to put the
market up. but a good deal. SO they
thought. that could put prices down. and
so they went home short over the wee.
end Many Of them even vcntured 70 go
out of town to spend a few DAYS in the
country. thinking there could be no
trouble about covering their contracts on
Wednesday when London settlement was
under way. Some Of those VINO were
on hand yesterday covered up and pocE-
eted their losses. while those who We're
away-well, it is 10 be hoped they viii
not have an opportunity TO see what has
4 been happening in their absence lest 1t
should spoil their holiday.
It is always an indication that our
market is not very robust when &; be-
comes nervous on the eve OF every Lon
+ don settlement In an aggressive bull
market nobody. except the aTbitTageur.
/ takes much interest in the London settle
ment day or the commencement of trad
ing for the new account The absence
I OF nervousness this time may be sig
nifcant.
Sugar continued its advance to-day,
but without bringing anything definite as
/ to the cause of the strength and activity.
/ There We're rum0rs. but they were vague
and apparently more in the nature OF
attempts 10 fit news to tie rise than OF
any actual development In the company
affairs, which could have served as the
basis for the increased demand for the
stock.
/ One Of these rumors concerned the COM
pany relations with the ArbuckIe con
+ Germ. which il was said had become more
haf
and more interesting one had reference
20 the relations with the American Beet
Sugar Company and the possible acQuisi-
ton Of the Federal Sugar Refining Com
pany What made the talk about the
beet sugar company interesting is that
it is in line with a story circulated about
the beginning Of the ear TO the effect
that American Sugar Refining director.
would at their meeting in New York, IL
February, discuss a matter Of great in
tersst TO both companies. The February
meeting has not yet occurred, but tn,
rumor has REQUIRED in a way to Undue,
brokers to think that there may be some
thing in it, The rumor about Fedora
Sugar is brand-new
There was some buying Of Baltimor,
land Ohio on the theory that with III,
dividend of per cent deducted OF
Wednesday the stock would look cheap
There has been very little speculation il
the stock for long while but it wa.
said that the demand from investors Is o.
considerable proportions
Revived rumOrS OF dividend action at al
: early date accompanied the rise in Mis-
souri, Kansas and Texas, the most .es
} sonable Of these being that at their meet
ing in April the directors would order al
initial payment at the rate Of . per cen
a year. There was another about a guar
antee Of per cent on the stock by an
other system-presumably one of the Hi
lines-but this received very littl,
credence. On the prospect for dividends
the best information is that the eXpecta
ton of a distribution on the common
is premature at the present time. bu
that, as the road is earning at the rat,
of per cent on that issue. the Director
! may some time in the present year con
slider the ACCESSIBILITY of distributing some
thing to the stockholders.
One of the traders who heard the ~
NOR that Missouri. Kansas and Texas
would be taken into the Hill system
wanted 60 know how many shares o
Great Northern would be given in ex
Z change for each share Of the road.
Nowhere in the list was greater strength
displayed than in the copper stocks
Amalgamated and Anaconda. The strength
ia the latter was but continuation Of :
tendency that had become clearly define,
at the end OF last week. but the move
ment in the other was something new, 70
the stock had for several days been KEEP