The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-05-01
PUBLIC WILL NOT BUY
Trading Is Chiefly Confined
to Professionals.
LITTLE CHANGE IN PRICES
Wheat News Favorable, Foreign
Markets Firm, and Money situR-
ton satisfactory, Yet Efforts to
Stimulate Interest in Standard
Shares IL Disappointing.


New York. April S0-News~ from the
winter wheat section to-day was again
favorable, there was no break in the ease
of the money situation, the foreign mar
kets. if dull. were firm. and the greater
portion of professional operators in the
stock market, impressed with the under
lying strength shown by the market re-
Gently, were Inclined TO make ventures on
the buying side of the speculative ac-
count The result was somewhat
broader market for stocks. but with the
dealings so exclusively confined 10 habit
ual traders, as TO leave the stability OF
the market largely in doubt.
Commission houses reported hardly
without exception that there were yet not
the slightest signs Of buying Of stocks by
the general public, nor IN the large finan-
cial circles Yves there any abatement of
the conservative sentiment that has ever
since the beginning of the year been en-
phatically expressed there.
It was indubitable too, that there was
in the market to-day a great deal Of that
liquidation which Wall street calls a
carefully conducted" kind. Those hay
ing the manipulation in charge endeav-
Ored 10 stimulate interest by making a
variety OF stocks instead Of merely one
or two active and strong. yet on adj
vances in prices stocks were freely sup
piled 70 purchasers, especially of issues
like Union Pacific common. A rising
movement has lately been SO conspicuous.
n, ~T,- e
transactions IN the market was decidedly
larger than it was yesterday and the
dealings in Union Pacific, Reading and
certain other stocks were also greater
than they have been at any time for
several days past, yet of these several
prominent ones closed for the day either
at q decline or al d very slight advance
The market was most animated in the
first half hour of business, and the most
striking advances in prices were then
made After that throughout the day the
course of values was irregular and hest
Eating.
Money Lows Prices Go Up.
It is very clear that the rise in prices
that has been slowly carried on for a fort
night has been based almost entirely upon
one circumstance, the prevailing low rates
for the use of money The contention of
the spectators who have bought stocks is
that although there is at present no in
vestment demand for securities, the prob
abilities are that such an Investment de
mand viii in due course spriag up if the
present ease of call and time money in
Wall street is continued.
The argument, or at least the hope. is I
that as the weeks and months go by peo-
pie who have money in trust companies
and other places of deposit VIII become
tired of receiving a small interest return
thereon when they can place their money
TO so much better advantage as regards
yearly income in stocks and bonds. There
was to-day general disposition noticed
10 disCTedit the stories OF holding COM
panies and the like that have been circu-
lated as anOrding peculiar reasons for the
advance in Union Pacific common stock
and TO accept as the sufficient reason for
the advance In the price Of the issue the
disparity between the interest return on it
and the price of money in the loan mar
ket. It is only to be said that such an
explanation is a far more sensible one
than the others previously addueed.
Among bankers, however, the future of
the money situation is by no means con-
sidered clear nor Is II held that p0liti-
cal and labor conditions in the country
have yet so modified for the better as
TO justify a stock market boom The
opinion Is freely expressed by authorities
of high rank IN those matters. who per-
sonally would be gratifed as greatly by
an advance in the price of securities, that
such money rates as are now quoted can
not hold for q much further period with
out producing exports Of gold from the
country and It IS 70 be observed that al
though money freely offers. and at a rel
atiyely cheap figure for periods If less
than six months. money for really long
matuTitics cannot be obtained except on
an interest rate that approximates that
originally paid by the railroad companies
and other large corporate borrowers upon
the so-called shOrt-te-m notes. This at
tests that the money situation is not in
fact, as relaxed as seems.
Money Flows TO Interior.
The local banks are now losing money
steadily TO the banks of the interior Of
the country. the subtreasury being a
creditor of the banks during the week
thus far in the sam OF S12Sj.00O
Routine matters Of interest to-day COM
pTlsed chiefly the announcement Of Ger
tain significant dissolutlons of Wall
street firms. further decline in wheat
upon the better crop news, and q more
encouraging report Of the condition OF
wheat in Kansas by the secretary. of the
State board of agriculture there, and
rumor that was entirely unfounded that
the Atchison Railway Company had com
pleted negotiations for the sale Of S25.-
100000 convertible bonds The story was
that a prominent local banking house had
taken these bonds at price of par less
a commission Of % per cent. This. If
true. would have testified to a far better
condition of the bond market than on the
surface of things exists. but the firm in
question declared that the story was en-
tirely without basis.
After the close OF the stock market the
financial statement of the United States
Steel Corporation for the March quarter
appeared. The net earnings of the cor
poration We're a little over $50, 100000, or
about s2,60o000 less than for the December
quarter. although S3.500O0o greater than
for the corresponding period last year.
The falling off from the December quar-
ter was solely attributed to the losses
Il