The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-04-23
WALL STREET NOTES
Feeling of Cheerfulness Per-
vades Stock Market.
DIFFERENT CAUSES ASSIGNED
Rise Brings Prices of Active Stocks
Up 10 the Level of April D, Which
Last month-Upwnrd Movement Ex-
pected soon 40 Come TO an End.

Was High Following the Panic.
Last Month-Upward Movement Ex-
pected soon 40 Come TO an End.
New York, April PA feeling of cheer
fulness in marked contrast to that which
had prevailed at the beginning of last
week pervaded the street to-day and
was not only reflected in the discussions
Of affairs financially. but in the number
and size of the orders received by the COM
mission houses ana the general appear
ancc of something doing all over the
financial section.
Brokers were inclined TO advise their
to take On good stocks. and
there was an inclination to act on the ad-
vice that showed return Of confidence
of note To the investor, at least TO the
Spectator who is ever alert 10 seize op-
portmities for fair profits. 1t would be
hard to say what was the principal factor
in bringing about the change in sentiment,
for on this subject opinions differed wide
~. Where all seemed TO agree was in
expecting a further advance in the stock
market, and the test Of the strength u
this apparent conviction came IN the
way It was backed up by buying orders.
As an indication Of the difference OF
opinion which prevailed IN the street as
to the cause Of Improvement in the tone
of the market an exchange OF notes be-
tween three brokers in the yestibule OF
the stock exchange at the noon hour was
not uninteresting. Albeit they had given
builish advices 10 their customers on
reaching their offices in the morning.
'"The easy money" said one: the IN
wieldy short interest" said another: the
fact that all the bad news is out. and that
the State legislatures are going home
about their business" said the third.
Here were three different reasons for
reaching the same conclusion, and the ad-
vocate Of no one Of them conceded that
there was much merit in either Of the
others. IN this particular group no
mention was made Of another argument
that perhaps had as many adherents as
any OF these mentioned-that the markets
action at the end OF last week showed
thoroughly sold out condition. All signs
of real liquidation had disappeared about
as far back as Tuesday last.
One OF the wise saws OF the street is
that "a bull market cannot be made on
call money" but from the arguments ad-
vanced by many brokers in favor Of
raise in prices it must be inferred that
the precept Of rise IN prices is forgotten
In several quarters. Call money will only
remain low as long as the demand for it
does not exceed moderate proportions. Let
the demand once become large and the
trust companies and the out of town
banks will quickly see that the rates go
up to a level where the leaders viii enjoy
a good share of the good things in sight
These institutions make little secret Of
the fact that when rates on call are low
they withdraw from the market, leaving
the associated banks 10 supply practically
al the demand FOR call loans. but what
they do not adEs.t-although many Of
them make the practice a regular part
OF their p0icy-is that when rates stiffen
up. after they have come in as lenders.
they withdrew again temporarily, helping
besides causing unsettlemeut compeis
brokers 20 pay q stiff price for their ac-
comodatiOns. Such possibilities make 1t
impossible TO reckon with any certainty
in a limited and temporary sense. The
fact that it is now accounted factor
Of more than ordinary Importance may
indicate that the present upward move
mert is not expected TO continue very
long or so very far.
To-day's rise brought the prices Of q
number of the active stocks up near the
level at which they sold on April Q and
which about marked the top OF the rise
from the low points made in Match. In
few cases, however, was the recovery
complete, but should advances be made to-
morrow as great as those of to-day, the
three weeks period would have marked a
decline that in some stocks amounted 10
nearly 10 points. followed by rise that
wiped out all the loss. At the lowest
depths of the decline all the talk was
bcarish. Now that the loss has been al
most recovered, all the talk is bullish, and
there are those who are cynical enough
4 10 regard this fact as very significant
II the object of the rise which culmi-
mated three weeks ago was to distribute
stocks bought during the period of de
moralization last month. il is doubtful if il
accomplished its purpose. Prices did not
hold long enough at the high level to per
NIT any very great amount of realizing
and It may be that those who wanted to
distribute large lines of stocks found il
necessary to permit a decline. with q
view 10 encouraging the growth Of a shor,
interest, and that they are now utilizine
this short interest fer the accomplishment
of their original purpose. Such a line Of
reasoning is followed in some quarters
although, of course. it may be entirely fai
/ laci0us. Probably everything will depend
on the extent to which the public respond,
to the present efforts to advance prices
! or even assuming that the whole purpos,
of the rise is to effect distribution. those
who have charge of the manipulation gVil
naturally endeavor TO get as good a pric,
as possible for what they have to sell. and
means that they will use every means al
their disposal 10 accomplish the distribu
/ ton at higher level than has heretofor.
/ been touched this month. That the mar
ket is the subject of manipulation Their,
( can be no doubt. although perhaps to IA
greater extent than previous bull mar
kets, in certain stages of their Development
/ Cables from London and Paris similar IL
/ tone to those received on Saturday cam,
Iagain to-day, and took an especially OF
tmistic view of the prospects for the Har
riman issues, St Paul and the Northwes
/ and the Hill stocks.
ROsToN STOCKS