The Washington herald., 1907-12-03
WALL STREET NOTES
Heavy Profit Taking Causes
Declines in Market.
RECOVERY FOLLOWS QUICKLY
Brooklyn Rapid Transit, a COmDara-
tiveIy Inactive stock, Leads I'm Up
ward Movement Which Sets In
shortly After NOOn-BrekerS Want
ed 10 Wait for Presidents Message.

New York, Dec. 2.-London did not Ike
the bank statement, and New York did
not form a particularly favorable impress
sion OF il for the matter Even the most
optimistic trader was forced to admit that
the showing was not a brilliant one. on
the other hand. all We're compelled to
admit that the figures indicated an i'm
provement in the situation, and, therefore.
the feeling OF disappointment should have
gone no further than TO reflect the degree
in which the betterment fell short OF the
too optimistic anticipations which had
been entertained regarding II before il
made its appearance. But Il went further
than this, and induced bear selling Of
market already over sold. This was a
mistake which brought painful conse-
quences upon those who made IT,
After such rise as the market had
there would almost certainly have been
heavy proft taking to-day, even IL the
bank statement had been a great deal
better than it was. The difference which
the disappointment over the showing Of
the banks made on the trading was that
the volume Of bear selling was greatly in
creased.
Possibly. too. the volume OF profit tax
ing was a little larger and the support
little less aggressive than there might
have been had the deficit in surplus re-
serve been reduced by several million
dollars instead of by a single million As
ii was, a trap was set for the bear and he
stepped right into it.
Brokers. as a rule. took the ground that
until the Presidents message is out of
the way the market was likely 10 con
tinue reactioaary, and so advised their
customers. They did not wish TO buy
stocks, and where their advice could ex-
ert an influence they used il 20 deter in
tending purchasers.
They felt impelled to this course all the
more strongly by the stiffness in money
that arose from the withdrawal from the
street OF the funds needed 10 pay the in
stallment on the st. Paul stock and to
meet interest and dividend disbursements
at the beginning Of the month. One cf-
feet Of this was to keep a large part Of
the buying energy in a latent state. COP
serving a force that may be applied LATER
with very considerable effect
While profit-taking was in progress the
market took it we'll When il ceased
prices bounded upward with greater buoy
ancy than AT any previous time since the
rise started week ago. The short inter-
est which had been allowed \ breathing
spell was obliged 10 start on the run, and
from having increased its size during the
short period of rest WAS In bad running
form and made poor Roadway in its effort
10 reach cover.
The most extraordinary thing about the
remarkable change that came over the
market shortly after noon was that its
first visible manifestation was in com
paratively unimportant stock. like Brook
lyn Rapid Transit. This stock about noon
began 10 move upward with every evil
dence of real strength. and in a very little
while the whole market moved in sym
pathy. 1t looked Ike a wonderful in
stance of a small tail wagging a large
dog.