The Washington herald., 1907-10-26
WALL STREET NOTES
London Continues Jolly Lead
of New York Prices.
SMALL BUT SPEEDY MARKET
Rise Attributed by Some American
Traders tn an Attempt TO work
tinue from Institutions In No DAN
ger of Suffering from Runs.


dulged in another runaway market in the
American department yesterday, and
seemed to thoroughly enjoy H. 1t was a
slim market, more notable for speed than
strength, but it kept up the pace during
the entire session with a substantial lead
Of prices in New York. In some of the
active issues there was Ii difference of a
couple of points or more between prices
in London and here.
Most of the traders attributed the sharp
rise in London prices for our stocks to
manipulation eXerted at the point Of least
resistance for the sake Of the effect which
it might work on sentiment here This
was probably a wrong conclusion, and
those who reached it seemed TO be
strangely unmindfuI when considering the
matter Of the principal cause of the
weakness in the market here. Exceeding
any other factor or all other factors com
bined in depressing prices, the money
stringency not only obliged some brokers
10 liquidate holdings of stocks, but pre-
vented others from buying because they
We're unable to obtain the funds 10 pay
for what they would like to purchase.
The narrow view which the traders have
taken Of the meaning Of the difference
between prices here and in London is
well matched by the view which they
take OF the Withdrawals OF money from
financial institutions which are not suf-
fering anything in the nature of a run
and yet are losing deposits at much more
than the normal rate
From the talk in Wall street 1t might
be supposed that this money is going
into safe deposit boxes, or, as one trader
said. Into socks" Had this trader used
a word of one more letter, he might have
come nearer the mark. When the pres
ent trouble passes IL will be found that
stocks have been taken 10 a great extent
for investment by people of moderate
means.
That it was the inability Of brokers TO
get cash more than anything else that
was responsible for the condition of the
market in the forenoon, was clearly
shown. even at that time by the fact
that although there were more banking
difficulties reported than on any other
day jn many years. trading on the Stock
Exchange took hardly any notice Of an
nouncements of this kind. Many brokers
were Indifferent 10 the course Of prices.
II they could only get money, they hardly
cared what might have happened 10 quo
tations temporarily; but although they
had the finest kind of assets. they We're
only able 20 obtain the Darest kind Of
accommodations. and even these We're In
several instances given unwiIingly by
banks that could not refuse 90 make spe-
ciaI efforts to supply regular customers.
The call rate did not go above 70 per
cent; but it was not the rate. but the
scarcity of funds that worried brokers.
one of the most significant factors iu
the market apart from considerations of
the money situation. was the demand for
calls on Union Pacific the buyers IN
some instances being reported 60 have
paid as much as I per cent for the priv
iiege of calling the stock at 100 In sixty
days. This showed that some interests
expected "a decided Improvement in the
market for the stock within the next
couple Of m0nths-possibiy as a result of
the carrying out OF the much-dlscussed
plan 20 separate the cOmpauy's holdings
OF security from its other assets, and 20
make these the basis of q substantial!
distribution to stockholders.
Union Pacific led the rise in the mar
ket. and the movement was stimulated
by the appearance OF representatives Of a
money syndicate offering about S20010 900
on call at 80 per cent a burst Of real
strength occurred in the last half hour
and the highest prices Of the day were
made shortly before the close.
United States steel against distin-
guished itself by its display of firmness
when the general market was weak. and
while the traders tried to explain the
relative strength of the stock IS the re-
suit of manipulation. they must have felt
deep down in their hearts that it reflected
something much more substantial The
amount Of United States Steel taken in
the past few days was enormous. and
there is hardly a broker who has not
satisfied himself as to the genUineless Of
the demand for this issue.
Revival Of rumors Of gold imports
brought the interesting fact that since
the beginning of the present month there
have been heavy exports Of copper to
help exports of grain and cotton in MAX
ing exchange. One source Of consolation
in the present nervousness Of bankers is
that the scheme of holding cotton for
higher prices viii probably be knocked on
the head, and that the staple viii go
more freely 10 market. materially i'm
proving the outlook for imports Of gold
from Europe.
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