The Washington herald., 1907-07-29


New York. July 8.-During the past
week further Roadway was made in the
direction Of the establishment Of a higher
price level for securities and the advance
was accompanied BIZ a broadening Of the
trading. which, although not great. was
sufficient 70 disclose a tendency on the
part of other stocks TO sympathize with
the action OF the recognized market
Lsaders.
No fault should really be found with
the market on the ground that it con
tinued narrow. Had an effort been made
10 aggressively uplift the whole list, the
inevitable result would have been a
money squeeze Of sufficient severity to
destroy whatever chance may now exist
for the success Of p campaign for higher
prices in the coming fall Al present the
market for call funds is easy. but an
active speculation for the rise might
speedily change that. time money being
already a little sitter than it was a week
ago.
The foreign exchange markets have re-
Gently shown such strength as to revive
rUmors OF further exports % gold. but
while it IS among the possibilities that
some Of the metal may be sent to Eu-
rope Il is altogether unlikely that the
movement viii assume any serious pro-
portions.
Good Demand for Crops.
II is certain that there Will be a good
demand from abroad for the products OF
the soil this fall. and cotton. always a
good maker of exchange, will be espe-
eially so this year. when its price is not
far from y cents a pound. Wheat AT
about a dollar viii also make exchange
rapidly and the fact is important. when
it is a question OF getting sufficient vessel
room t. accommodate the country's ex-
ports. that cotton and wheat. which, rel
ativeiy to the room they take up. bring
in more money than the other farm
products. Will this year command prices
much above the average.
Once these crops begin to move in
volume there viii be little doubt as TO
Regarding the money situation as one Of
the most serious obstacles 10 an upward
movement IN prices at the present time. *
VIII have TO be admitted that in the last
week or two the market has been very
skinfuIly handled. First one OF two stocks
We're taken in hand. advanced a few
points, and sustained at about the new
level one or two others We're then
treated in the same way. Once up they
remained up.
Many Stocks At High Tide.
Attention was given later TO one OF two
more with the same desult. Already quite
a few stocks have been brought UP 10
levels representing good advances, and
this has been accomplished in such a way
that the money market has at no time
felt a strain Operators who attempted
to oppose the movement by short selling
found only one or two stocks at a time
which offered inducements for that kind
Of operations, and this condition has kept
the shQTt interest concentrated and within
the power Of those working for advance
to squeeze it when they want to, although
they have followed the policy Of leaving
1t undisturbed for future use.
No effort was made except in the case
Of one group Of stocks to encourage. the
public 10 enter the market. the intention
apparently being TO bring about easier
conditions in money before endeavOrfng
20 enlist the cooperation of outsiders in
stock speculation. The one group where
the contrary appeared to be the case was
the Hartman issues. On several occa-
sions last week Union Pacific and South
ern Pacific contributed about half of the
volume of transactions making ND the
days trading, and such efforts We're made
TO advance these stocks, without consid-
GRAFTON OF the factors that induced other
interests TO move slowy, that for a time
it looked as if the whole movement to-
ward higher prices would be wrecked al
most at its very start
Hartman Rise Natural.
There We're undoubtedly good grounds
for a rise in the Hartman stocks, and no
fault could be found with ii if It had not
been carried on with a total disregard Of
the money situation and OF the fact that
the market needed delicate handling if
the public. scared away months ago. were
to be treasured and induced to return. It
fftA9s "a NDLl1Ns al Atu tlldl tie puDllCa-
ton far in advance Of the usual time of
the Union Pacific and Southern Pacific
annual statements. the excellent results
shown therein, and the implied promise
I in a statement made TO the press by MIR.
Hartman that the Southern Pacific divi-
dend. TO be declared on August /. at least
two weeks earlier than the regular time.
would be at the rate of s per cent a year.
were all calculated to prove reassuring.
But If 1t was intended that these matters
should help to defeat speculation that
could not be wholesome in its widest ef-
fects, never was good intention more sadly
disappointed.
SOUTHERN Pacific Dividend.
Coincidently with the publication OF all
the good news, the speculal on N the
stocks was so great as to divert attention
from other parts OF the market. and
about all that was gained by the unusual
celebrity of the heads Of those companies
in giving out important information was
the furnishing Of material for the boldest
speculative operations in Union = and
Southern Pacific stocks that have been
witnessed in the street In many a day
There Is. of course, no longer any
reasonable doubts that the Southern Pa
cific dividend viii be raised to S per cent,
the same rate that is now paid on Atchi-