The Washington herald., 1907-07-03
WALL STREET NOTES
July Disbursements Are Not
Rapidly ReinVeSted.
HOUSES GET BUT FEW ORDERS
Demand for Funds TO Meet Pay
ments on Stock and Insiders Also
Find IL Necessary to Aid Their Cor
pOrations by Tnking ShOrt-term
NOtes-Buu Leaders in Good.

New York. July 2.-To-day being the day
after the $685. 900, 900 July interest and divi-
dend disbursements, was the day the
sangulne had elected for the beginning
Of the reinvestment demand for stocks,
but market operators who made careful
inquiries of the commission houses could
find no particular evidence. Not only did
very few orders reach the commission
houses, but there was great dearth as
well. both In banks and brokerage Offices.
of requests for advances on investments.
The plain people were neither buying nor
showing a disposition 10 buy Most en-
phatically if was the concensus among
bankers and brokers' the public was not
coming in.
One Of the Wall street news agencies
said that the reinvestment demand was
all a myth anyway, and proceeded TO
prove II on the principles Of domestic
economies. At least nine-tenths of the
disbursements, it was maintained, must
be spent for living expenses, since the dis
bursements represent income. That left
only a paltry slS500.O0o which by the
widest stretch of the Imagination could
find its way into purchases Of stocks, and
q great part OF this, II was contended, has
gone into the hands OF wealthy investors
who have been borrowing money TO pro-
tect unstable securities. Therefore, there
was no money Of consequence left for
reinvestment. The argument was as logl-
cal as any plain syll0gism, but consider
able doubt was expressed as 10 the aCcu-
racy Of the premises.
There was no doubt that no reinvest-
ment purchases OF stocks were expected
from many OF the prominent financial
groups, for il has long been realized that
payments on current stock and bond sub
scriptons would make heavy inroads on
surplus incomes There Is a continuing
demand for funds 10 meet payments on
81. Paul, Great Northern. and Northern
Pacific stock, 10 cite but the three most
prominent instances. and the time Is ap-
preaching when payments must be made.
among other bonds, on the Union Pacific
and AtchisOn convertibles. There IS no
doubt, either. that insiders in many cor
poradons, both railroad and industrial,
have considered themselves obliged 10 as
sist their respective corporations by TAX
ing. in one way or another fair sized
blocks Of the shOTt-term notes Of these
companies. A particular case IN point
Is a certain large railroad corporation
which has borrowed quite extensively on
notes. The aggregate Of the money thus
to be paid by many Wall street men be
fore the next big dividend period comes
around is very large, and will. In many
cases, take almost all Of their portion Of
the July disbursements.
Some credence has been placed i'm a re-
port current for several days. that a
well-known New York speculator had
either instigated the rally in the market
or been employed to manipulate the mar
ket for others. However prone traders
were 70 accept the report they were very
much disinclined 20 believe that the Bos-
tonian was advised 10 come out with a
newspaper announcement that he did H.
II was thought that If he was employed
20 manipulate the market his employers
would have too good perception of public
sentiment TO encourage new campaign
Of advertising publicity. The lnaugura-
ton Of such a campaign was considered
especially untimely and III advised, in
view Of the expected return from the JULY
disbursements, for il was everywhere
granted that such a proceeding would de-
ter investors and bring into the market If
any, only a scattered following There
was an impression in some quarters that
the Bost0nian was shrewd enough 10 ap-
preciate this. and was inauguratlng a
campaign for the express purpose Of scar
ing away investors and depressing prices
rather than Of attracting the public and
furthering the progress Of the bull move
ment.
While there was no Improvement in the
investment position or the market. it
appeared, though slightly reactionary. to
maintain a strong speculative position
II vas evident that the bull leaders had
secured a strong tactical position from
the sharp drives made on the short inter-
est the preceding day. Even those most
bearishly inclined and those who at
tackled prices yesterday, finding that their
offerings were readily absorbed, did not
persist aggressiyely in a selling move
ment. With this condition prevailing. II
was not considered bad tactics If the bull
leaders were inclined 10 let prices sag
and encourage. if possible. an increase
in the volume Of short contracts. At any
rate they appeared TO have the market
we'll in hand throughout the session and
were represented, after the close, as well
content with the price movements of the