The Washington herald., 1907-10-14
BEARS RULE MARKET
Professionals Force Down
Average Price of Shares.
MONEY SITUATION UNEASY
Prospect of Geld Exports Looms
Up as Result of Continued Rise In
Sterling Exchanze-Foreign Pur-
chasers Taking Less Cotton Than
Had Been Anticipated.

New York. Oct. l3.-The average price
Of stocks fell to lower level IN Wall
street last week than at any time pre-
yiously during the year.
Many explanations were offered for this
renewed decline In the market. but they
were none Of them sufhcing and the in
itiaI cause Of the break was undoubtedly
a resumption Of professional attacks upon
values by the same party Of spectators
who have been hostile to the market for
so long
In the early part Of the week the
market developed not little strength
under a sharp upbidding of Northern
Pacific stock. On Tuesday the Great
Northern Railway Company declared an
extra dividend OF IL per cent in addi-
ton 10 the regular quarterly distribution
of IA per cent, the source Of the dividend
being. as was understood. the revenues
OF the Lake Superior Corporation, which
is the name OF the general holding COM
panv Of so many Of the Great North
erns subordinate concerns This re-
vived ancient rumors of a large extra
dividend upon Northern Pacific stock and
led certain speculative interests to buy a
good sized block os Northern Pacific
shares al advancing prices. When oniy
the regular quarterly dividend on North
ern Pacific was announced the stock nat
uraIly broke with violence, and the event
served TO weaken the entire market
It may be said that the idea has never
obtained among sensible people OF an ex-
ira dividend on Northern Pacific. now OF
In the immediate future. declared out Of
current earnings of the company
May Sell Equity.
1t is not unlikely. however, that before
the end Of the year the Northern Pacific
will sell its equity in the Chicago, Bur-
lington and Quincy Railroad property to
the Great Northern Railway Company
and that the proceeds OF the sale will
be made the subject of a cash distribu-
tiOn amounting 10 in the neighborhO0d Of
SIS a share among the Northern Pacific
stockholders. This operation will not in
vOlve in any way, as many people
have supposed the present status Of
the collateral trust bonds covering
the Chicago, Burlington and Quincy
stock, and Jointly guaranteed by the
Northern Pacific and Great Northern
Railway. The Northern Pacific. after the
sale of its equity, will still be responsible
| for the payment OF the interest and prin-
/ cipal of these bonds: but it can, neverthe-
| less. accept. if 1t wishes. guarantee
| from the Great Northern company that
| its proportionate share OF this liability
| will be met
Money Situation to Fore.
Further, the money situation again
/ loomed up last week as a definite stock
market factor. The transfers OF currency
to the West for the purpose Of moving
the crops did not appear to be OF so
large a scale as they were in the week
| preceding; but possibilities Of gold ex-
ports rose in the financial horizon as a
result of the continued rise in sterling
| exchange in the market. following upO-
the remittance of money to France and
other foreign countries in payment Of
maturing financial obligations. These
| chiefly consisted, as was understood, Of
revenue bills sold abroad by the city Of
New York three months ago Such re-
mittances are still in progress and will,
| It is expected, meet with climax about
November l, when a good many railway
short-term notes held abroad VIII fall
due.
When, therefore, il was rumored that
/ the Bank of France was so anxious TO
enlarge its gold reserves that II was
Offering to allow interest on gold In
course of shipment to Paris, our stock
market suffered considerable fright. II
was afterward announced that these In
ducements on the part of the Bank OF
France were withdrawn, and whether
they were ever really offered is matter
of doubt.
Abandon Hope of Gold.
But the situation of the moment ap-
pears to be such that the hopes of gold
imports some time later on in the year
in which Wall street INDUCED a month
or so ago must be abandoned
One influence that is operating against
US in this matter at the present time is
the relatively small quantity Of cotton that
is coming forward on purchases by for
eign consumers. The foreigners are buy
ing wheat at a great rate and must con-
tlnue to do SO for an indefinite period;
but wheat as a maker Of exchange" is
far less important than cotton, and thus
far in the season our exports Of cotton
have been below the normal The facts
In the case appear to be that the stocks
Of cotton held abroad are now a good