The Washington herald., 1907-05-19


day. and during the first three-quarters
Of an hour of trading, the market was
quiet, and except for the weakness Of
the Interborough-Me issues,
featureless and uninteresting 10 the last
degree. The better news from the wheat
growing sections Of the country ac-
centuated by the decline in the grain mar
kets, enabled the trading in the great
number Of securities to resist for a time
the influence of the weakness in one or
two stocks. but when Brooklyn Rapid
Transit began to sympathize with the In
terborough- Metropolitan issues and Ches-
apeake and Ohio dropped TO new low
record figures for the year, prices weak
ened all along the line, and even the IA
vorable bank statement did not suffice to
change the tendency or improve the tone.
The immediate cause OF the weakness in
the local traction stocks was the disap-
pointing showing of earnings made by
the Interborough-Metr combina-
ton, but there were also definite rumoTs
that before long this company would have
TO borrow Sl5.0l0,000 on three-year ) per
cent notes. with less definite intimations
that Brooklyn Rapid Transit also would
soon make its appearance in the money
market as a borrower.
The decline in Chesapeake ard Ohio was
based on a report that the New York
Central interests. as well as those Of
Pennsylvania, would Soon retire from the
pointment was felt over the Indifferent
support rendered 20 the new Union Pa
cifc bonds on the curb. and there was a
disposition to regard some of the selling
Of ST. Paul and the Hill stocks as liquida-
ton on account of the prospects of
wheat shortage.
wheat Poor fin Europe.
What has seemed to figure more than
anything else in the mind Of the wheat
buyers is. however, the general outlook
for a poor wheat crop this year the world
over. The newspapers have been filled
with dispatches from Europe giving dis
nal accounts Of the state of the crop in
Russia and in the great Danubian wheat
regions and in Germany so that, taking
all in all, Il has seemed probable that the
exportabIe surplus Of wheat in the large
wheat-produciog territories Of the world
VIII be Of good deal smaller this year
than it was last year.
Il remains TO be seen, of course, how
far this outlook may be modified by later
events; but the condition Of affairs thus
far disclosed has been certainly sufficient
20 cause more than trifing advance I'm
the price Of grain. Many trained observ-
ers declared II as their opinion that what
ever recession occurred during the week
in prices in the stock market was due
chiefly 10 sales OF securities speculatively
for the decline by those who were en-
gagged in operations for the rise in the
wheat market, and this was attested in
the way of a distinct increase in the bor-
rowing demand for stocks. Sentiment in
Wall street was also adversely affected
by the peculiar heaviness Of the market
for bonds For many days past pressure
has been witnessed on the stock exchange
TO all investment securities Ike the Lake
Shore As and convertible As. the AtchisOn
convertible IS, and many other investment
securities Of similar grades. while both
the subscription rights and the QUOTA
ticns of the new Union Pacific COnverti-
bic + per cent bonds.
Various Factors at Work.
While discussion oT the recent large
bond Offering of the Union Pacific Rail
road Company and the prospective prose
cution Of the company by the govern
ment. in connection with matters recently
brought out by the Interstate Commerce
Commission. has been 10 a greater or less
extent "a stock market influence during the
week, the overshadowing feature Of the
general situation in financial circles has
been the continued sensational advance in
the price of wheat.
It seemed probable that 20 e certain
degree professional speculation was
diverted from the security market 70 the
produce exchanges. But the rise in wheat
was undoubtedly 10 be chiefly accounted
for by the entrance of the general public
int0 speculative commitments for the ad-
vance I'm the articles on scale that has
not been witnessed for many years.
The cOnCensus among conservative OBJ
servers in Wall street at the close Of the
week was that this speculation in wheat
was being 0verd0ne. and a sharp fall In
quotations for all the principal options
for future delivery of wheat was looked
for as likely 10 occur for so-caIled tech
nical reasons at any time. It was plain,
nevertheless that there were subs ,antiaI
reasons for a considerable portion at
least Of the upward movement in grain
prices that was in progress.
Reports from the West during the week
seemed on the whole TO be Of more en-
couragng sort than they were in the week
preceding, but the lateness Of the agri-
cultural season was still pronounced. and
stories Of damage 20 the crops from low
temperature and green bugs and indica-
t!ons that the spring wheat area this year