The Washington herald., 1907-03-13
MARKET AGAIN QUIET
Feverish Activity Of the Past
Fortnight at End.
BULL MOVE GAINS STRENGTH
United States Steel Common Last TO
Fall SharpIy-New York Banks Lose
to Subtreasury-Hon Situation
Overshadovvs All other Influences
as stock Price Factor.


New York. March 12.-The most notable
aspect presented by transactions in the
security market to-day was "a quieting
down of that feverish activity in the deaf
iugs which has. for over a fortnight, been
q feature of the trading. The market was
strong in the morning, dull around mid
day, and weak in the afternoon, follow
ing the course which for a long time it
pursued earlier in the year. 1t was. in
fact. practically a duplicate Of the mar
ket yesterday. except that its firmncss
was more pronounced than it was on the
preceding day. and that a late rally in
prices succeeding the fall in the earlier
portion of the afternoon indicated that
resistance to efforts making for a break
in prices was gathering, rather than los
ing. force
There was no stock OF group of stocks
in which purchases and sales attracted
especial or particular attention, unless it
was perhaps, the United States Steel
common shares. in which dealings lately
have been relatively larger
United States Steel common stock was
the last 60 fan sharply in the general
decline in the market which, as is now
evident at least temporarily eliminated
last Friday; and since that time the stock
has rallied with greater qUickness than
that of any other security actively dealt
in by spectators.
Reasons for SteeTs Strength.
The reason for the movement in the
stock during the week thus far seems
10 have been an impression that the
probabilities strongly favor an advance in
the rate of dividend distribution on the
shares to or even per cent az the next
term, when the directors OF the corpora
ton would naturally take such action.
The basis for this impression is. of course.
that the earnings Of the corporation arc
mounting continually 10 new high records.
and that. despite the fall In the stock
market the outlook is exceedingly bright
for "a prolongatiOn Of the earnings at their
present or even i'm larger volume through
Out the remainder of the year. We're tins
the only factor I'm the case, there is very
little doubt that the dividend On Steel
common stock would be advanced 1t Is
10 be- remembered. however. that the
large and costly plans OF Improvement of
its plants and i'm construction OF new
works. and that it has formally an-
nounced its intention OF accomplishing
these as far as possible without issuing
rev securities of any kind.
Good Chance in Future.
II the directors Of the corporation ho!d
10 this policy, the chances for a dividend
would be increased in the near future.
However the matter of dividends may be
decided, it is. Of course, unqUest.onabIe
that the intrinsic values of the common
and preferred stock Of the United States
Steel Corporation would be heightened
by the expenditure OF earnings and the
creation Of new property covered by the
stock i'm the manner described
Obviously the dominant influence in the
market to-day was the announcement in
tEe morning newspapers Of a visit to the
President of the United States of the most
Important private banker and IN the ar
rtugemeuts made for "a conference at AN
early date between the Chief Executive
and the representative of several OF the
leading railway systems of the country.
This news was interpreted by Wall stree-
to-day IN "a hopeful and favorable light.
power of anybody at this time to stay
tho current of hostile legislation against
the railroads which is now setting in
strong I'M the legislatures
Change Would Come Soon,
II is undeniable on the other hand. that
much Of this legislation has received its
stimulus from the provocative attitude
that has been maintained by the national
administration. and it is undoubted that
if existing policies at Washington were
to be materially altered. the generally
beneficial effect of such change would
soon become apparent. 1t is admitted by
The law officers of the government and by
the President himself, that the present
antitrust law is defective in that il for
bids combinations of capital for worthy
as well as for unworthy ends If 1t could
ha announced. for instance that here
after, government prosecutions under the
sherman law would be limited 10 thosa
eases that were plainly in restraint OF
trade. and as such. worked distinct injury
10 the community, that would be consid- /
cred i'm the finaqcial community as n
great step toward an improved condition
Of affairs
At the moment the one influence that is }
looming up as a stock market factor. /
oversnadOwinG all Others is the character
OF the money situation.
Banks Lose 10 SubtreaSury.
The local banks have lost to the sub
treasury in the week thus far $500. 900. or
"a sum sufficient to wipe out the surplus I
reserve in the clearinghouse statement
last Saturday if bank loans have not been F.
in the meantime correspondingIy re- /
duced. Within few days payments /
must be made upon subscriptions 20 re- /
cent railway stock and bond issues aggre-
eating over $l0OOc000. while in the same /
period there must also be "a calling in of /
funds for certain large dividend distri- /
buttons
BEYOND this money rates are displaying T.
81 steadily rising tendency in all the tinan- /
ciai centerS of the country, and. for that /
matter. the world. In Boston. recently. /
as high as l. per cent has been paid by
houses there for the purpose Of carving 4
over Copper stocks of the most markcta- I
ble class In Chicago to-day time and /
call money rates advanced. while here
as high as 6la per cent was paid for the 4
use Of funds for nearby maturities II 1
was indicated in this column YESTERDAY
and formally made known to-day. thai "a I
large national banking institution had Sc 4
cured S,U000o IN Holland for export 10 4
this country; but this resulted in an ad- 4
vance IN the discount rate OF the Bank of /
Holland from > TO per cent and in a I
rise in discounts and the price of Ameri- /
can eagles in London
II IS very clear that whatever protec-
tive measures can be adopted by foreign .
countries 10 prevent loss of gold i'm any
quantity from Europe to this side viii
lee put into force
NJ. Fish FIecta5 4Te,,bor Of p,o-.,