The sun., 1907-03-28
FINANoIAL avn ooMMERcEAL.
WnpNEsnAY. March q.

The altogether favorable character OF
developments bearing upon financial affairs
that were announced yesterday and TO which
further emphasis was lent in the morning
newspapers to-day naturally resulted this
morning in what is known in Wall Street
as wide opening" in prices on the Stock
Exchange. There was a rush by people
to buy stocks that at the outset sent quota
tions for the Leading shares up from to 3
points beyond the large advances recorded
at the close Of business Yesterday, and
this strength Of the market continued with
various small intermissions up to the end
Of the first hour OF the afternoon. The
inevitable and familiar ~ ession in prices
then began, caused, as usual, by profit
taking sales by those who had bought stocks
on the day before and by renewed lquida-
ton OF weak accounts. but to a greater
extent than by either Of these forces by a
recurrence Of attacks by spectators for
the decline. Under selling of this sort
the larger share Of the gains made earlier
in the day was lost, although the market
plainly resisted the declining tendency
with greater vigor than it has done previ-
ously for long time. The fall may have
been accelerated perhaps. by news of the
NOaNU VI n Iltclcb WHpNt lAbNAh&N
Of certain railway stocks are known to be
large. The capitalist in question, how
ever, is known not to have been at all inter-
ested in the stock market in a speculative
way and there are substantial reasons for
stating that the future possession of the
securities held by him has been so arranged
for as to make his deoease in no way a mat
ter Of financial concern. The drop in the
market in the afternoon seemed to originate
in a sharp raid directed against the Erie
stocks and was based upon stories having
reference to the well known fact that there
will mature at various times during the
next few months about sS,OOO,OOO Of Erie
short term notes. Ample preparations
have, Of course, been made for the pay
ment Of these obligations, and the attack
upon the Erie issues to-day recalled the
circumstance that has more bearing than
might be supposed with veteran observers
of the security market, that particular weak
ness Of the Erie stocks, especially the COM
pany's common shares, has in the past
very often marked the elimination of a
prolonged decline In the general market.
A pronounced advance In these stocks
after q long continued rise in the market
has, too, on more occasions than one proved
a danger signal Be this as II may, the
handspring Of current fluctuations in Sc
curity prices was to-day very plainly re
vealed. The active power for the moment
in the market is manifestiy and simply
bear manipulation, and that too, conducted
by a greater number Of rash, youthful and
inexperienced speoulators than have been
operating In stocks at any time since the
boom Of 1902. The furious selling Of
stocks that has characterized the market
In the last few weeks has proceeded almost
entirely from three or four commission
houses IN the financial district whose clien-
tele is Of an ultra gambling sort, and there
is not the slightest question but that GUS
toners Of these houses have been "pyra-
miding' on the short side Of the speculative
account IN exactly the same way that others
like them did in the frenzied speculation
for the rise five years ago which met such
disastrous elimination. There is, Of course
no doubt that this attack upon the market
has resulted In a great amount Of genuine
liquidation Of stocks, but 1t remains to be
seen whether further operations of the sort
at the ridiculously low level Of prices for
the stocks Of the great railway corporations
Of the country that now prevails will be-
attended with success.
There Is one matter also concerning
which evidences are very clear and are
likely to be more clear al the days 60 on.
and that Ia that the money situation is de-
cidedly and substantially improving The
one powerful argument which specuators
for the decline have been enabled TO adduce
In recent months is that rates for time
money were larger than the yield on divl-
dend paying stocks and that there were
no signs that these rates would soon be-
lowered. But such signs have now put In
an appearance. Almost invariably after
the first Of April each year money rates
tend TO soften from purely natural causes.
This year. as is now certain, the Govern
ment. taking advantage Of the provisions
OF the Aldrich bill. proposes TO see to il
that, the money stu alton shall not be
strained by an intake on the part Of the
Treasury Department of money paid upon
customs dues and internal revenue collec-
tions. considerable portion of the s17,-
OOO, 900 released in a lump sum from the
Treasury vaults through Secretary Cor
telyous order Of yesterday was covered
into the local banks to-day and it is prob
able that this entire sum will be paid into
these banks before the week is over. II. in
addition 10 this, the Secretary Of the Treasury
should announce that he proposes TO pay
off in cash and without any refunding
operations whatever the 500 100000 of
per cent. bonds maturing on July it
can readily be seen what a change has
come over the general aspect of financial
affairs, Although the dreaded first of April
is near at hand no more than the legal rate
was bid to-day for time money for any
period and it was said that certain large
loans had been negotiated for long maturi-
ties at less than this figure. The youthful
spectators who are engaged in selling con-
tracts for the delivery of stocks at present
prices may wisely ponder little as to the
probable course Of the security market
when once a relatively long future Of ease
in time money rates is assured
New York Stock Exchange sales, March 27