The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-08-17
WALL STREET NOTES
Forecast of Taft's Speech
DampenS Streets ArdOr.
INVESTMENT BUYING IS ON
May Force Professional Covering on
Future Appearance of support.
AlIis-ChaImers Goes 90 Pieces, but
Oncers Deny Report OF Financial
TrOuble-Loans ut Per Cent.

New York, Aug. 16.-Part of the game
which the market scored yesterday, on
what purported to be forecasts of the
Presidents speech at Provincetown next
Tuesday it lost this afternoon on pur-
ported forecasts of Secretary Taft's
speech in Columbus Monday. An alleged
synopsis of the latter was sent out by
one of the Wall Street news agencies
under a Columbus date line.
Il was construed by the street as bear
ish in about the same degree as the
previous days reports were considered to
be bullish. As on the previous day there
was no authoritative character TO the re-
ports, but the bulk of the traders be-
lieved them. and proceeded to discount
the effect by selling stocks,
The market was rather strong. and the
previous days recovery very we'll main
tanned in the early trading, but there
was one element of very decided weak
ness. It was supplied by Allis-Chalmers
common and preferred. which went to
pieces on the liquidation Of large blocks
OF stock. The common dropped from 10
to 4, and the preferred from 21I3 to l5I5
The street jumped at the conclusion that
the company was in difficulties, and re-
ports to this effect were so persistent
that both the president. in Chicago. and
the vice president here, deemed II ad-
visable TO put out reassuring statements
Each insisted that the company was in
NJ, ,TsFfs~ryfFs1u T,47T pro Crh bar
was in excellent condition. having made
full arrangements for its financial needs
by a bond issue year ago.
There was again reported a substantial
amount Of investment buying. Trans
actions in odd lots were not of as great
volume as on some previous days of the
week, but they were considerable. The
larger and more important investment
buying continued. as on the previous day
Altogether. buying from the two sources
took blocks of stock away from the street
to such an extent that it should be help
ful in forcing professional covering on
future appearances of support.
The professional element was bearish
throughout the afternoon. notwithstand-
ing the scarcity of stocks in the loan
crowd. and scattered about the street all
sorts of runners OF impending disaster
Most Of them. undoubtedly, were of purely
artificial origin. and all, perhaps, lacked
substantial foundation.
Support from big interests appeared to
be lacking. There was a general belief
that the most of that rendered the
previous day had been closed out. In
this connection it was said that on Thurs
day an effort was made 10 secure con-
Certed support Ii failed but not be
cause of the indiSposition OF those who
objected 10 taking care of their own
stocks. They took the position that every
interest should be itself the Judge OF the
extent TO which it should protect the hold
ings of its own following from deprecia-
ton. Every one should decide on the ex-
tent Of the support, the time when il
should he extended. and the time when IL
should be withdrawn.
Much Of the weakness in the late trad
ing was due. no doubt. to realization on
buying orders put In for support on
Thursday morning.
A loan on all industrial collateral was
made for six months at peF cent Money
brokers said they could secure per cent
On prime mixed collateral knowledge of
the high rates obtainable had been COM
municated 20 banks in the interior, and
the fact that rates equally high must
be prevalent all over the countryA There
was further advance in demand sterling
which closed 10 points up at 4S7lO and
4S7i5.