The Washington herald., 1907-04-01

Aid 70 tlse Financial Market.
w sork March sL-The stock market
- tne elose Of last week seemed 10 have
pselsS near!s recovered from its extra
erdiaasy and utterly unwarranted scare
ot fsw days before. The desperate at
tempt u break TIE market in the forepart
If The week was Successful TO this extent
That II IoEcea prices down 10 point a
litEls ioHes than that touched on the now
famous so-called panic day on March H.
ara this fact was interesting because it
brought The market conformation with the
asuaI precedents concerning such affairs.
Z has time ana time again been noticed
that after a violept drop in values quick
ais Follows. sueoeeded at various lengths
81 time by "a further decline to the low
setel previously reached, and even some
Dimes 10 point slightly below this. it
has not infrequently been observed, too,
shat saeh recession marks the end of
general decline in the market that has for
greater 81 less length of time been in
pfogFesa The events of the week in one
ar1he4 respect We're significant. They dis
closed as by the ftil light OF day Just what
are lie acute Factors eff the moment oper-
tins fora fan in the stock market
values
s-Isaist-asafsted' Bear Clique.
Tie general causes that have continued
- produce such decline are now very
wei understood but the specific infiu-
eneas III uonk-those whose presence Wall
street actually feels and touches-are sim
PIX ana solely the attacks upon the mar
ket by bear spectators. II was the
selling 81 stocks by these men that pro-
voked TIE violent fan in prices on March
IL anG again last Monday. and IT viii be
owing only TO renewed 0nslaughts upon
the market by this party rather than TO
any genuine liquidation that the market
Vill again decline if il declines at all
word may be httngly said at this
time regarding the constituent character
isties Of the Wall street bear" party that
SNOW exists. II is. according to all OBJ
ssesHatioa Of the most ''ight-waisted'
feft ever known in the financial district
8ne selling of stock is largely concen-
tEated ia three or four commission houses,
none Of them Of the first rank. whose
customers comprise spectators Of the
most ultra gambling description.
Tricks OF the Bear ManipuIatOrs.
The bear clique maIieiously set adoat
siorles that proaiaent firms and banking
houses were in trouble and trotted out
aae neR begie after another as fast as
f9@5fasTs raised by the last one were dis
psHesss On Monday and the two days
at shsf end of the previous week they
laanassed TO excite the market with APP
1eahehsions of grave financial disturb
aaee@ at the time of the approaching
Ieh589n settlement Then trouble in Ber-
q .4f hen. gas,lr
81 b Esnces discount rate was to be again
raised Various railroad companies were
TO 81 thrown into the hands of receivers,
ssfske had been declared to take effect
81 the following day upon the lines OF
many of the Western railroads. and so
eH, but somehow, throughout the week
afler its opening day all these stories
sfid not succeed in depressing prices as
tleg had previously done and it became
evident 10 the most casual observer that
ne market was slowly but steadily gain
ing strength.
Good stocks RidicuiOusIy Low.
The enc prominent feature about the
anancial situation at this time is that
iaearly every one Of the standard stocks
iH Wall street, the shares of most of the
ceuntrys leading railway lines and Of
many of the great Industrial corporations
afe now exceedingly cheap. ridiculously
snd sensationally cheap and that they
are such, according TO all established
bases of calculation. as 10 present bar
gains TO the Investors, or spectators. on (
ample margin that have not been seen
Before for a generation. Even the Wall /
street bears admit this to this extent /
that they say present prices are cheap if /
present railway and industrial dividends |
are 10 be continued, and they seem to /
iest al their serious arguments for a |
fufiher decline in the market upon the /
Likelihood. as they assert of a great COM /
ing depression in business and further 1
reduction OF these dividend distributions /
Yet even cOnceding what al the moment /
seems TO be the most improbable Of oc- /
currences that in the next twelve months /
there viii be such a contraction in busi- /
ness as 70 cause dividend rates in general I
10 be cut down. the fact remains that the 1
decline in prices according to every fair
standard OF observation. has considerably /
more than discounted such an event
Money Situation Brightens.
That the money situation is improving
is plain enough. Wall Street does not YET /
rally realize what it will mean 10 the /
business interests of the country TO have 1
as they never had before the fun use of
their own money through the deposit in
the national banks of the cash paid into
the government from internal revenue
collections and customs dues. while
bear spectators have been singularly
slow 10 grasp the import of indications
that the government proposes to pay of /
in cash the Sl04000000 worth Of 4 pei. cent
bonds maturing on July l. This does not
mean, of course, that 500, COO, 900 of prac-
tically new money viii be disbursed bv
the Treasury, but it does mean that
probably half that sum viii be taken
from the Treasury vaults and placed in
business channels
Ii viii take some time to arrange the
methods of carrying out the new ways of
taking care of the government surplus as
provided for in the Aldrich bill PASSED
by the last session of Congress, but when
these methods are settled upon they will
mean that the merchants of the country /
viii have about SIo0,000.000 more money to
use each year than they did before