The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1907-04-03
STOCK MARKET UNCERTAIN
But indications Are Financial
Clouds Aee Rolling By

NEW YORK April 3.-The stock
market during the week was feverish
and unsettled. An immense amount,
in small lots, of securities has been abb
sorbed by small investment buyers, but
the market at large was conspicuously
lacking in big pool buying power. This
is explained by the fact that very heavy
losses have been sustained by such
previous holders; confidence in pool
operation has been badly shaken the
floating supply of capital has been
practically exhausted by the immense
offerings of new securities, and large
sums of the latter are still hanging
over the market. During January and
February nearly 100000 of Short
term railroad notes were offered. Then
over $500, 900 of new stock of var
ious railroads issued to stockholders of
record at par have also had to be f1n-
anced. These include about 500, OOO,-
900 by St. Paul, over $90.00O,000 by the
Northern Pacific, $25,O00,O0O by the
Northwest. s6O,OOO,OOO by Great North
ern, $70,OO0.OOO by New York Centrai
and nearly $30,000,O00 by the New York
& New Haven. Besides these heavy
amounts it is well known that many
blocks of new bonds held by various
syndicates have been held at first hand
for months seking a resting place in
investors strong boxes. With such a
load as this, roughly estimated at
$1,000, 100000, and the buying powers
so badly crippled, it is hardly reason
able to anticipate any extravagant up
turn in the market, although there is
justification for reasonable advance in
prices after such an immense recession
which has taken place.
The situation has been certainly Inn
proved by the recent upheaval, for the
financial atmosphere has been par
TALLY clarified and we are now in no
danger of severe panic, as threatened
a few weeks ago. We can hencefor-
ward safely look for at least partial
relief in the money market. Secre-
tary Cortelyou's policy Is now definitely
known to be that Of counteracting to
the full limits of his power the absorb
ton of funds by the treasury. This is
encouraging, and his action in regard
to the government deposits and his in
tentions in regard to the purchase of IS
have done much towards a restoration
of confidence in financial circles. The
unnatural relations between the gov
eminent and the money market are a
matter of common knowledge, and so
long as these exist there is no course
left but that of counteracting bad
tendencies as far as possible, even by
artificial methods which are not en-
tlrely free from objection. Another
source of relief to the money marke.
should be the recent drastic liquida-
ton. Borrowings on an enormous scale
by great spectators will, no doubt,
temporarily cease; while currency
should soon begin to return from the
interior. After the middle of April
II not sooner-we may expect rising
bank averages and a cessation of the
extreme rates for money which have
been experienced during the last six
months. This does not mean that very
low rates are in prOspect,-on the con-
trary, fairly firm rates must be antici-
pated for some time to come because
demands will still be large. There is
a disposition in banking circles to be
much more exacting as to collateral
and especially in the matter of lending
~
come the latter will have to be pos,.
poned unless of the most desirable and
substantial character. We are evident
ly in for a period of more moderation
and the country may consider itself
fortunate, indeed that the crash which
mas occurred has not been worse In
all probability, there will be some
slackening in trade. There will be
iessened demand for luxuries, for jew
elry, for automobiles and for high
priced commodities. And there will
also be postponement of new projects
which ultimately will diminish the de-
mand for labor and raw materials I'M
III these come down to a lower level.
or until the country has accumulated
fresh supply of capital and had time
TO recover from the staggering effect
OF the March collapse. which will
prove a memorable one in the history
of American finance.
A good deal of exaggeration exists