The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1907-11-10

vestors watching the quotations. anxious
Tor the signal of regained confidence 10
lump in and buy stocks right and LEFT.
The public has not been in the stock
market for years. II is just ripe 10 get
in OF the bargain counter prices now
prevailing and another week Of steadi-
ness will witness the beginning Of
good investment demand Indeed II IS
believed that over 200,O0o shares OF stock
have been taken out and paid Tor TINS
week. There were number OF inl-
portant factors in connection with the
market, the most important being the
absorption of the controlling interest
in Tennessee Coal and Iron shares BY
tie United States Steel Corporation
thus taking out a large and unwieldy
block of securities from the banking in
terests of New York and removing
a dangerous menace TO the market as
the Tennessee Coal and Iron pool had
put up the stock for collateral pre-
sumably in the Trust Company of Amer
lea. ard some one had to remove the
burden TO save the bank
The big Steel Corporation turned the
trick and old ii easily, because aside
from the money that il always has on
hand the corporation had ample bonds
in The sinking fund and the bonds were
Sdlabie, where a large sale or tennessee
Coal and iron would have played heb
with the list. Next in Importance per-
haps most important was the engage
meut Cf nearly $4,000 600 of gold Tor
import much of this having arrived
within the last few days.
on Thursday the market was stag
gerad by an advance in the discount /
rate of the Bank of England 10 per
cent the highest in over score OF
years, and the Bank of France raised
its rate To 4 per cent The purpose was
IN oh AnRaUAnrenfE
America, but the premium on currency
here was too much for the imports TO
stop. and several millions were en-
me effect was evidenced in a decline
IN stocks. but not a serious loss, ana
the bears did not dare to make general
attacks throughout the list
Gates Returns.
Another influence that must not be
overlooked was the return to the scenes
of his former triUmphs of John W.
Gates. snred clever operator, wise
enough TO get out four months ago. and
wise enough TO return now when bust
ness must look up 1t can't look down
and when there are tempting OppoTtuni-
ties for high-grade stocks at bargain
counter prices.
And John w plunged into the line the
minute he struck town. As a large
holder of Tennessee Coal and Iron STOCK
he accepted the situation, ana quickly
changed his shares for United states
Steel bonds, and uquidated the bonds
that ne might operate in stocks,
1t was fortunate again that Mr.. Gates
and his following, for he always has
large and successful following, chose
Union Pacific as the stock in which 10
make their turn.
Fortunate Selection.
1t is generally understood on the street
that Union Pacific was considered more
or less Of a menace TO the situation. II
was known that the operations Of Mr.
Hartman and his associates have been
widely extended. with diversified in
terests in many corporations, demand
ing enormous sums of money AMI liable
10 feel the stringenCy of such serious
panic as the street mas witnessed during
the last four weeks A nOldlhg com
pany was announced by Mr.. Hartman
as q means for taking over his varied
interests In outside securities, IN ordCP
that the Union Pacific might be re-
Heved Of the care Of its assets and that
the company might get down to business
without having so much financing TO
do, and, at the same time, that the OBJ
jections 70 the Union Pacific having
such big wad Of stocks OF other rail-
roads on hand. and its inability TO vote
all Of its holdings, might be overcome
Bears Delighted.
The bear element accepted this an
nouncement with glee. They supposed
tnat it was the beginning of trouble for
AIR. Hartman, and that, in the panic.
the little magnate would not be able
10 turn himself quickly, and that tho
holding company was actually In the
form IF a Hartman bolster The bears
pounded Union Pacific right and LETT
and for weeks it hung over the market
as a weakling. Mr. Hartman may not
know it. but the bears were cunning
Tor him.
The situation changed entirely with
the advent of Mr.. Gates. Re bought
Union Pacific, some 5000 shares, and
nis following Joined IN, and Win such
earnestness that the bears changed thCil-
tactics and tried to cover, only 10 md
stock scarce and prices advancing.
Union Pacific ceased to be football
Stringency Not Over.
The great financial stringeucy is not
over, but it is much improved and the
rich men of New York have the situa-
ton apparently in hand-a0lv assisted
end abetted by the strong hand OF the
Treasury Department Of the United
States But well in hand IS not cured.
The widespread of the panic's effects,
practically all over the country. forcing
solvent concerns to shut down for want
G. the circulating medium, Inducing saw
ings banks to take advantage Of the
sixty DAYS clause in their bank books, the
liability of bankers 10 meet the de-
mands for currency, and the CUTtailment
I'm production that has resulted viii not
be effaced for many weeks or months
The possibility of an unsettled condi-
ton from the national election viii also
cause conservaJlveness.
Must Be Slow and Cautious.
The recovery must perforcC be slow
and the operations Of traders made with
great caution. That the worst is over
Is encouragement. That the recovery
VIII come is certain. The sharp up
turns that will follow investment buy
ms will probably be followed by slight
declines as collateral is unloaded.
The dividends offered at the market
Irice of stocks today are certainly
tempting TO the man with money 10 buy.
lock away and forget-and within year
or two. the harvest viii be rich and
satisfactory.
Some Promising Investments.
Erie, first preferred. considered a good
payer viii net the investor 10 per cent
at present prices.
United States Steel common pays ,