The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-04-07
PRICES STILL RISING
PrOfit-taking Sales Fail to
Stop Upward Move.
BANK STATEMENT AS A CHECK
While Figures are Favorable, De-
cline in Prices Results Because of
Conversion OF Paper Profits into
Cash-ActfOn by Secretary COrteI-
son Believed of Great Importance.

son Believed of Great Importance.
New York. April 6.-Proht-taklng sales
Of stock of the kind not infrequently Wit
messed at the close of a week In which a
strong upward movement in prices has
been in progress, put in an appearance
in the stock market to-day, and this ten
deney toward realizations was probably
intensified by the operation of another
factor whose force is well recognized IN
market fuctuatOns-that Of a desire to
convert paper profits into cash imme-
diately following the announcement of
some definitely expected good news.
Tie rise in the market this week has, of
course. been rapid. many OF the shares
most actively dealt in having risen from
three to eight points without any inter
vening reaction; while the general ad-
vance in the market since its downward
trend reached its nadir two weeks ago has
been characterized with much the same
violence as that which accompanied the
previous fall. The action of the market
to-day was in every way healthy and
gratifying, and was unquestiOnably well
coined by those who believe most firmly
that, barring some entirely unloOked-for
disaster, values in the immediate future
will mount to materially higher levels.
The rise in prices was continued vigorous
~ in the first half Of Jo-days stock ex-
change session, gains of from ! to .
points over yesterdays large advances
being common.
Decline Follows Statement.
Then, following the publication Of the
bank statement, the market declined
rather sharply. leaving final prices. how
ever. not greatly changed from those OF
1he day before
IN the primary rise the features Of the
market were the Amalgamated Copper,
Anaconda. American Smelling and Rein
ing. and Southern Pacific. due TO reasons
which are now familiar TO all people at
all well informed regarding the business
situation; ana these stocks resisted more
etubbofnly than did others the decline in
the market later.
The good news Of the day was. of
course, the figures OF the weekly bank
statement. They were fully as favorable
as any one had anticipated or wished. at
testing an enlargement Of bank cash of
Sl0,5S3, 600. ana an increase in the bank
surplus Of s6.509000. which carried the
total surplus up TO $19,441 225-that is to
say, TO the largest reserve shown by the
clearinghouse institutions at this season.
with one exception. since the year 1885
Bank loans increased to-day a little over
S6,000009, as the natural consequence Of
the recent fall IN interest rates and
conveyance 10 bank ledgers Of loans car
ried Ia London and by out-of-town lenders
in our own country
II is estimated that in the last week
London has sold in this market over I00,-
coo shares Of stock, part OF this represent
ing a transfer Of financial accommoda-
ton from London houses to this side. and
part genuine liquidation by weak hold
ers Of stocks in London, In view Of the
approaching fortnightly settlement IN
their market
The whole course of affairs IN this re-
gard has been recently of an entirely
normal and salutary sort.
COrteIyOu's Action Felt.
It is very clear as the week ends that
the action Of our government in releasing
money lately in the way it has done. has
been powerfully felt in every quarter Of
the international financial world. Dis
counts in the open market in London to-
day. quoting e Of per cent below the rate
OF the Bank OF England. point emphati-
cElly 10 the probability OF an early re-
duction Ia the bank rate itself. The fall IN
money rates here, too, caused such a rise
IN sterling exchange as to make gold ex-
ports from London to this side unproht-
able, thus allowing the Bank Of England
TO secure all the gold now being laid
down in London from the South African
mines. An easier financial temper is Wis
IDLE IN Paris and Berlin. AT home the
result Of the Chicago municipal elections.
the decision OF the Supreme Court of Min |
.nesota in the suit TO restrain the Great
Northern Railroad stock issues. the
settlement Of the labor difficulties on the /
Western railroads and the bright outlook |
for the crops have combined with the i'm |
mense Improvement IN the money situa- |
ton TO produce a more cheerful feeling 1
IN Wall street
Meanwhile the reports OF the financial /
agencies show that business throughout |
the country is IN the soundest and most /
vigorous state Failures ara smaller than /
they were last year. bank clearances at
all the interior points are larger, couec- /
tons are good, and preparations now
being made IN mercantile lines for the /
1all season are greater than ever before
known. One matter now being greatly 4
discussed in the financial district. as we'll 1
as IN trade circles. is the future OF prices /
for raw copper metal.
Drop in Copper Prices.
It would be entirely reasonable TO expect
that owing to the recent decline in copper
metal in England where the commodity is
so extensively bought and sold on a spec
ulative basis, there should be some reduc-
zion in the price Of copper In this country
from its present lofty range.
Even should this take place in a fai,iv
large degree, It would still leave the cur
rent profits Of the copper mining business
the largest known for generations. The
fact is, however, that producers of copper
are looking forward TO an advance rather
than decline in quotations for the metal.
Stocks OF copper everywhere are low. and
of the article cannot continue
very long a policy OF Delay in their pur-
chases Of copper when their own business
remains In its present rushing state.
The underlying condition Of all this mat
ter is. as it was throughout last year. that
Of copper is charging faster
than Is the production Of the commodity.
While this holds, it seems needless to look
for any considerable decline in conner /