The Washington herald., 1907-04-21
Market Contracted to Degree
Seldom Witnessed.
PRICE OF WHEAT ADVANCES
weather Conditions UnfavOrabIe
and Bank Statement Not EncOurHg-
iEg-Traders Confused by the FL
nancing During the Week Of the
American Telegraph Loan.

witnessed. Previous tOSll 80 o. clock there
were no transactions whatever in Rock
Island. Erie, American Locomotive. Mis-
souri,. Kansas and Texas, Texas Pacific,
Republic Iron and Steel, and many other
active stocks. while fluctuations In prices
were reduced to a minimum.
During this early period. however. the
UNDERGONE of the market was inclined 10
heavlness, the majority Of spectators
who manifested an interest IN the course
OF values expressing themselves as dis
cOuraged over the torpidity of the market
over the continued apathy of the invest
ment market abroad. despite the ease in
money there. while they were also dis
posed to lay emphasis upon the unpropi-
tious weather conditions over the Western
grain fields. There were more reports Of
cold weather and lack of moisture to-day
from Kansas and Nebraska, and the price
Of wheat again advanced.
Nevertheless, there was absolutely no
pressure upon the market prices seeming
10 decline in cases where any fall occurred
more from sheer neglect than anything
else In the last quarter Of an hour of
the stock exchange session good portion
of this inertia disappeared, and in certain
quarters Of the market sharp advances oc-
Cured
This change appeared TO be due. pFi-
marily, TO the circumstance that. although
the weekly bank statement, when it was
Published. made record snly less poor
than that Of Saturday a week ago. there
was no selling OF stocks caused by it, the
indications being. seemingly. that the mar
ket was in a liQuidated condition.
Banks Gain Cash.
The figures of the bank return attested
gain in cash of g. At, 900. or but little
below yesterdays estimate, and an in
crease in bank loans of S25,347,OO0, these
resulting in a decided bank surplus OF
over s4000,O0l. and bringing the total sur
plus down TO an amount that no longer
compares in a favorable way with those
of corresponding periods in the past. The
increase n loans was commonly cOnsid- /
cred as due 20 the same causes that were
presumably operative last week. the trans |
ference TO the banks of loans formerly
carried by out-of-toWn lenders, and shift /
ed by these lenders because of the fall in
money rates here.
In addition 70 this the bank statement
to-day was undoubtedly more or less con (
fused by the financing during the week
of the American Telephone and Telegraph
Companys 100000 loan. just as il was
perturbed last week by the S24. 100000 pay
ment of the Great Northern Companies
of stock issue.
The fact that the stock market did not
decline upon the disclosures OF these
figures tended TO induce covering" pur-
the closing strength Of the market was
10 larger extent due 10 evidence Of par |
tiouiar buying of one or two of the high
price STOCKS. Indications of this kind
have ben noticed throughout the week.
especially in the case of Northwestern
common stock, and when the stock be-
gan 10 advance to-day on larger pur-
Chases than those that have lately been
made vigorous. buying started in the
Gerat Northern preferred, Northern Pa
cIfic and Union Pacific stocks and Great
Northern Ore certificates. and the market J
generally rose briskIy
Total sales during the day, on the other
hand. were barely in excess Of u. 600 |
shares, and aside from the advance In a
few stocks, as described the rise in prices
appeared 70 be almost entirely due TO a /
partial retirement of the short interest.
SaE EeFAOu OF BuAAHesHs
In banking houses and other high places
in the financial world the impression ap-
peared 70 be, as the week ended. that
the stock market was passing into a De-
Rod of dullness that might be consider !
ably prolonged, and the observation gem
orally passed was that this was the |
best thing on all accounts that the market /
could ask for itself.
There are certainly a great many cues |
tons that must be settled before there
can be any sustained rise in security
prices.
1t is true that the short interest in
the market IS large and that it might
at any time beat a frightened retreat. or
be forced into such a movement. 1t is /
also true that the money situation is
greatly improved. and that the prospects
are for relatively easy money rates for
long time TO come; but it is clear that
unless investors are 10 enter broadly into
the market. no advance based on
squeeze Of shorts can be permanent; ]
and despite the ease in money rates
there are only in sporadic instances signs
that investors are inclined TO add to their
present holdings of railway securities, at
least
questionably been exaggerated for specu-
iatve effect in the grain market there
is no question but that the crop season /
thus far has not been as favorable as it /
was last year. and that in general the
season is from two to three weeks back /
ward.
High Cost of Operating.
Our leading railroad companies are COM
planning bitterly of the present high cost
of operating their lines. especially that |
due to the exactions of the labor unions /
and the record of railway net earnings for |
the year to date shows plain tendency
to decrease. Even making allowances for
considerable portion of this falling off |
as being due to the more iuclement
weather conditions that have been this |
year experienced. and 10 the fact that
comparisons are now made with abnor- I
mally large railway revenues last year. the |
fact remains that the inroads upon the /
treasures of the railroad companies made |
10y The increased pay compulsoriIy granted
10 employees is coming TO be a very serious /
matter.
Railway credit, too has been immensely
harmed by adverse and radical legislation
In different States, and there can be hardly |
any question that unless many laws of
this character that have been passed are
such an impairment Of railway receipts