The Washington herald., 1907-05-07
DECLINE IN PRICES
Movement in Security Mar
ket Is Quite Sluggish.
ATCHIsoN STOCKS ARE STRONG
Wall Street DisapprOves High Price
Paid for LOans-UndertOne in For
eiER Financial Market Stronger.
Paris an Eager Bidder for Gold.
Sterling Exchange Advances.

New York, May 6.-There was only g
sluggish movement in the security market
to-day but such as it was, it was attend
ed with general declines in prices. In the
early part of the day. although the dull
ness of the market was pronounced, an
upward tendency nevertheless put in an
appearance. as it often does on the first
day Of the week. but before the close
Of the first hour OF business, prices re-
Ceded and again moved upward a little,
only TO fall with considerable heaviness in
the afternoon. Dealings were still great
ly concentrated in a few stocks and the
entire days market was SO absolutely
professional as TO suggest that a large
portion OF the transactions were not
strictly Of genuine character.
Commission house business was, so far
as could be seen, at an utter standsull.
There were only one or two instances in
which specific reasons could be adduced
for such changes in prices as occurred.
A decline of 5ls points in Delaware ana
Hudson stock was accompanied with q
rumor that the Delaware and Hudson
Company was meditating a sale of bonds
That the company is meditating such a
sale has long been known, although it
viii probably be found when the transac-
ton takes place that the high credit of
the company has stood it in good stead
as regards the price it has had to pay
for its accommodation.
New York Central Depressed.
The New York Central shares were
naturally depressed by the very unfavora-
bic report published last week Of the New
York Central system for the March
quarter, the deficit recorded therein be-
ing such as to raise the question as to
the ability of the company to maintain
dividends on its stock at the present rate,
if no Improvement In jts earnings takes
place.
The AtchisOn common and preferred
stocks were particularly strong. on the
other hand, because OF the friendly recep-
tion given commonly TO the Atchison's
new financial plan. announced toward the
close Of last week. In general, however,
Wall street was disposed to-day to draw
pessimistic conclusions from the borrow
ing of railway companies. like the Atchi-
son, for relatively long periods at 3 per
cent, so far as it concerned prices Of rail-
way stocks on which the interest return
al current quotations is only between
and per cent.
The argument at the moment is that If
railway companies can only raise money
by the sale Of 5 per cent interest bearing
bonds, something more than g per cent
ought 10 be expected from the yield OF
the common shares of such railway or
ganiZauons
somewhat firmer uudertoue was re-
ported to-day in the foreign financial mar
ket, although this seemed TO be due. on
the London stock exchange especially, to
rather stronger hopes that have recently
been entertained that part of the demand
for sold, currently addressed to London
from Paris, might be shifted 20 New York.
Paris Bids for Gold.
Paris was an eager bidder for gold to-
day in the London market, and obtained
half of the gold offered there for sale.
Sterling exchange here advanced and the
foreign exchange market was filed with
rumors Of preliminary negotiations for
gold exports from this center to Paris on
the triangular" basis. AT present, al
though sterling is not at a price that
would Justify such an operation, it is not
far from the necessary level, and the diff
ference could probably be quickly made
up If foreign importers of the yellow metal
were to Cffcr Inducements" 10 these ship
ments Of the usual nature. The bearing
of all these tendencies upon prospective
money rates here is plain.
The distinct cause of unsettlement in
the stock market to-day was undoubtedly
the receipt of further discOuTaging news
from the winter wheat and spring wheat
sections.
Wheat Is Down.
At the opening Of the produce exchanges
to-day the price Of wheat was depressed
a little. owing TO the prevalence OF show
ers over sunday in Kansas and Nebraska
and one or two other winter wheat States,
and, also, 20 the receipt of dispatches tell
ing of unexpectedly large shipments of
the grain from all parts for export to
consuming centcrsi but after midday the
price of the wheat options shot up sharply
upon the publication OF the figures of the
Missouri state crop report. indicating
tall in the statistical condition OF wheat
in the State from 81 per cent on April / TO
81 per cent on May ]. a further~batch OF
stories of crop damage followed. one of
these taking the form of estimates from
certain agricultural authorities that seed
ing of spring wheat IN the Northwest
would be reduced from 10 to y per .cent
by the lateness of the spring season.
Wheat advanced cents a bushel from its
low price earlier in the morning, and,
broadly speaking, speculation In the COM
modify, as well as in stocks in the securi-
" market, was undoubtedly affected by
the expectation that the governments
crop report for May, due next Friday,
viii show a decided impairment in agri-
cultural conditions throughout the coun-
try A matter, too, that injured the mar
ket 10 greater or less extent was a
TUm0T that the government Department
Of Commerce and Labor would. on next
Monday, make another report hostile TO
the Standard Oil Company.