The Washington herald., 1907-09-16

New York. Sept. l5-The wave of better
feeling which began TO move over the
stock market in the latter part Of Au-
gust was somewhat diminished last week,
and although financial pessimism was not
nearly as pronounced as IL was a month
ago, views regarding the situation were
more mixed than they recently had been.
II must be said that the decline in prices
was undoubtedly due in part 10 a natural
reaction after the sharp rise in the mar
ket that had gone on ever since August "a
Wall streets memory is always short,
and Spectators quickly forgot there last
week that since the time named there
had. been advances Of % points or more
in some OF the leading stocks In the
fore part Of the week the market yielded
but slightly to the adverse forces brought
against it, and this resistance excited no
small degree Of favorable comment. Such
selling Of stocks as occurred seemed 70 be,
in the railroad list at least, of a kind
relating more 10 speculative pressure
than anything else; and even at the close
of the week. after all the recessions We're
made, it was evident that the standard
railroad shares had displayed conspicuous
firmness.
The week as a whole was one Of more
than usually important developments, on
Tuesday came the city's 100000 bond
sale with its half ridiculous and half
annoying incident Of an invalid bid for
half the issue; but taken all in all the re-
suits of the sale were encouraging from
a financial point Of view. II is true that
the price obtained by the city for the
bends were so low, in view OF the fact
that the interest rate on them was fixed
at the high figure Of II per cent, as 10
make the matter q new experience o.
the kind in our municipal finance; but
there was immediate recognition Of the
circumstance that the addition Of a half
per centum per annum in the annual in
terest rate on the bonds had caused them
TO be heavily OyeTsubscribed, and had
proved that there was any quantity OF
money available in the country for lend
ing Of this kind whenever proper induce
ments We're offered
Crop Condition Good.
II has long been recognized In financial
circles that one of the greatest weights
upon the situation has been for months
the financial difficulties, so called. in
which the city found itself as a result of
the failure 10 obtain needed money sup
plies at the proper time, and general re-
lief is felt now that these troubles are
over On the same day that the city S
bond sale took place appeared the gov
eruments agricultural report for the
month. which although It declared crop
conditions 10 be about what everybody
thought they were, was yet a matter for
genuine congratulation- IL atteSted that
the well being Of the crops had been prac-
tically maintained during the trying
month of August, so that the indications
for the harvest Yields this year made
thirty days ago remained practically Un-
changed.
The one influence directly affecting
prices Of stocks last week was, however,
the c0mm0ti0n in the copper trade and
the depression I'm the price Of copper
stocks, particularly in the quotations for
the Amalgamated Copper shares. There
is no gainsaying the fact that develop
ments IN this regard. when specifically
looked at, are little less than startling.
Less than six months ago the price of
copper was firmly held at % cents
pound, the hunger Of consumers Of cop
per for the metal was said to be such as
TO resemble famine, and there was no
one in the copper trade who predicted or
believed that copper would sell during
the year at less than % cents pound.
Now it is unlikely that any considerable
amount Of raw copper could readily be
marketed at even 16 cents pound. and
many Of the largest copper mines Of the
country are on the point Of shutting
down I'm whole or in part.
Copper Drop No Surprise.
Yet when the facts Of the case are
studied calmly little cause for wonder
appears, nor is any adequate ground af-
forded for animadversion or surprise con-
cerning the action of the AmaIgamated
Copper Company I'm closing its mines or
a considerable portion Of them. Early In
the year an utterly unreasonable fright
governed the copper consumers Of the
country upon the question Of their ability
70 secure needed supplies Of the metal
during the remainder Of the year. It
became clear that the consumption Of
copper during the last two years had in
creased at the rate Of about p per cent,
while the normal yearly rate OF 10 per
cent increase in the production Of the
metal had fallen 10 only 4 per cent It
seemed probable, too. that for the present
year the output OF copper In the United
States would suffer an absolute decrease
Finally an entirely exaggerated impress
sion became current as 70 the rapidity
with which the railway companies Of the
country proposed 10 electrify their lines.
At any rate. copper consumers bought
helter SHELTER IN the spring al the highest
prices known for years. a great deal more
copper than they ordinarily We're in the
L. II ]. ar- o E..a m
the stIingency IN money began to make
itself felt, and the corporations with
which the consumers Of copper did busi-
ness found that they were unable 10
raise funds for the enterprises that had
been projected, and were forced not only
to give up the idea Of future expendi-
lures, but to cancel orders for copper
goods that had already been placed. Cop
per consumers, therefore, who would not
have been on any account IN the market
for copper for a longer time than usual
owing to their unwonted purchases in the /
spring, found themselves barred from the
market for a much longer time further
owing TO the slackness of trade: and
hence it came about that there has been
virtually no buying Of copper in this coun-
TO since March 81 last
Contrasts with 1903.
A parallel Is often drawn between ex- I
isting conditions in the business world
and those in the famous year 1903. but
the great difference between the three
periods is plain. In 1903 a general contrac-
tion in business suddenly followed on the
heels Of the decline in the stock market, /
so that immediate relief to the money /
situation was afforded by a widespread /
release Of funds. On the present occasion. /
business contraction has been slow in 4