The Washington herald., 1907-08-25
MARKET IS BUOYANT
Rise in Prices in Many Ac-
tive Stocks During Day. :
SPECTATORS REALIZE ERROR
Find CorteIeyou's Aid to Wall Street
VIII Come In Way 10 Benefit
Only Legitimate Commercial In
terests-Erie, Southern, and New
York Central Sell Under Pressure.

New York, Aug. 4.-Substantial ad-
vances from last nights closing level OF
quotations were shown all through the
list at the opening OF the market, this
morning, the Improvement running TO as
much as two points in Great Northern
and about a point and half in several
other stocks. including New York Cen
tral, Union Pacific, Reading, and Ameri-
can Smelling and Refining.
The advances at the opening were fol-
lowed by a further rise in prices within
the first quarter of an hour. and during
this period there was such activity as
induced many Of the professional traders
to believe that the whole character of
the market had undergone a change as a
result Of the announcement made by Sec
rotary Cortelyou of his intention TO re-
Meve the money situation by making
weekly deposits with the banks during
the next FIVE weeks.
VIII Not Aid SDecuIatOrs.
Quite a little covering Of short con-
tracts was done on this theory, although
IN no well-informed quarter was the Sec
retary's plan regarded as a matter Of
any great consequence to the market.
The amount of money that the Treasury
could spare now. presumably about $40
100000 would go far in sustaining an up
ward movement in the stock market, and
the evident intention TO utilize the limited
means at the disposal OF the government
IN such a way that practically al the
money will reach the commercial interests
,F mill ho Ia
for use in Wall street speculation.
When this became understood the
spectators, who had bought on the open
ing rise. hastened to sell out their stocks.
while those operating for a decline en-
braeed the opportunity TO add to their
commitment on a rise for which there
was no substantial warrant
Southern and Erie Under Pressure.
Southern Railway preferred was put
Under pressure, as were also the Erie is
sues and New York Central, and all suf-
fered severe declines. It was rumOred
that the Erie directors would pass the
dividends on the preferred stocks, and
the stocks of the road dropped to new low
levels for the present movement. The
decline in New York Central brought a
recurrence of the stories of prospective
new financing and of the rumors that the
dividend would be reduced at the next
meeting.
All OF the metropolitan
group were weak. on the publication of
the bank statement. which proved better
than expected, there was a slight rally,
succeeded by another sharp break with
finally a fractionauy recovery just before
the close.
Resume OF the Week.
The liquidation, which had been so
much in evidence in the preceding week,
had about run its course by the time the
Presidents speech was published in Wall
street on Tuesday last, and as the short
interest was large and the bad news was
all out, the market rallied somewhat on
covering, although at no time did 1t
afford an exhibition of substantial
strength.
Later in the week there was a renewal
OF liquidation in a number Of individual
issues, particularly those in the Inter
borough Metropolitan combination, about
which sentiment became quite disturbed
as a result OF the investigation OF trac-
tion affairs by the Public Service Com
mission.
On Friday the directors Of the Southern
Railway voted to reduce the dividend on
The preferred stock and on the same day
the new owners Of the Central of Georgia
decided 10 discontinue the payment of
snterest on the third incomes.