The Washington herald., 1907-09-08
WALL STREET NOTES
Reaction Considered Bene-
fetal by Most Traders.
LAWSON CIRCULARS APPEAR
of Red Posters Recalls
Advice 10 Buy Copper, with Money
from Savings Ban&s-ReductiOn in
Price of Metal RumOred and May
Drop as Result of Information.

New York. Sept 7-Whenever it hap
pens as it did on Friday that the rumor
mill works overtime. it is fairly safe TO
conclude that a change, temporary at
least IN the course of prices is at hand.
The rule works both ways as every
good rule should. When after a consider
able decline in prices the street becomes
filed with rumors of all kinds of trouble
the time has generally arrived to buy
stocks at least for turn.
II on the other hand, after "a rise or
fair extent fanciful tales are heard Of
increased dividends, extra distribution
and deals Of all kinds then it is well to
question the motives underlying the evil
dent purpose TO stimulate speculative in
terest The motive will probably be
found in the desire Of some speculative
interests TO make a profit on the stocks
which they bought at lower prices. On
Friday there were stories Of extra dis
tribution on the Hill stocks. of changes
in the relations existing between the lead
ing Hartman properties, of new deals
among the anthracite cOalers, and of a
victory alleged to have been secured in
the courts by Pennsylvania in its fght
against the new 2-cent passenger rate
law Of the keystone State. These GER
tainly constituted an unusually large
output of the TumOr mill and as to-day's
reaction indicated. the dissemination of
the news was probably availed OF for
proht-talltng.
From every point Of view the reaction
has been a good thing so far as is gone
The rise should be very largely the result
Of professional operations. in which the
traders participated. as eagerly as they
would have entered into a movement IN
the opposite direction. had they supposed
that large interests We're working for
decline instead of an advance.
The position Of these traders became an
element of weakness in the upward move
ment. and IN order that there might be
no weak spot shake-out became neces-
sary. The probability is that some OF the
most substantial operators took profits
on part of their lines On Friday, and
were ready 10 withdraw support when
the small fry to-day endeavored to follow
their example,
The appearance in the street Of in
comprehensive circulars, bearing the
name Of Thomas W Lawson. and print
ed in flaming red. recalled the interesting
fact that on the day when this operator
advised the American people through the
medium Of advertisements in all the
leading papers. 70 take money out OF
the savings banks and use It to buy
stocks, selecting Amalgama ed Copper as
one which should be purchased, some IN
teTeSt placed orders before the opening Of
the market for the sale OF 2,50O shares 1f
this stock at a. and of an equal amcIsft
AT every advance of one-eighth up from
that level.
Y The stock that day sold up to 7fk. the
highest level touched for several weeks
past, and in accordance with the very in
tereSting order referred 10 three blocks
Of 2,50G shares each were sold. making
800 IN all Beyond this the brokers found
it impossible 30 do any more business. for
the market, instead OF going up further
began TO decline Some traders have
been III natured enough TO argue that
there was no positive ground for believ-
ing that Mr. Lawson had actually placed
the selling orders, although they admitted
that they were impressed with certain
circumstances that almost forced them
to accept such a conclusion.
It was TUmOTed to-day that a further
reduction would soon be made in the
price Of copper. but in we'll Informed
quarters the statement was made that
large quantity Of the metal could easily
be disposed of at 17iz cents a pound for
electrolytic. At this rate, too, the wages
Of the miners IN the Butte camp would
be reduced to $3.50 day. in accordance
with the agreement made last winter
when the rate was increased TO 81, and
the position OF the Amalgamated COM
pany would hardly suffer.
Tie reduction of half a cent a pound In
the price OF pig lead. made by the Amer
lean Smelling and Refining Company. had
something to do with the heaviness in
this c0mpany's stock This should not
be, as the REDUCTION is expected to result
in a resumption Of active demand for the
metal.