The Washington herald., 1907-03-24
NEARLY REACH Low LEVELS
Prices Down Until some Active
Stocks Go Below Last Weeks Mark.
London Conditions Held ResDon-
sibIe for the Dark outIoOk Here.
Not Enough Capital for business,

are but little above them. The one over
shadowing feature OF the trading to-day
was the weakness OF the foreign markets
and fear as to the untoward results that
might happen at the London financial
settlement. which begins next week. At
this settlement, as the great mass of peo-
pie are not thoroughly familiar with the
details OF international financial affairs
may not have borne in mind, payment
must be made for the losses incurred by
London operators in prices throughout
the last fortnight; and in this period
heavy debit balances have, Of course,
been Incurred upon practically all specu-
lations for the rise.
Consols in London to-day fell half a
point. all investment securities there were
heavy, and In Berlin even greater weak
ness was experienced. Il was commonly
estimated that the sales of stock to-day
fer foreign account aggregated at least
1000 shares. All this naturally afforded
strong pretext for spectators for the
decline IN this market to renew their at
tacks, and as the result of It all. there
was a net fan here to-day OF between .
and points in the standard shares.
yesterday, brought against the Canadian
Pacific stocks. Closing prices were a lit
tie. but not considerably, above the low
est. Unfavorable views as to the situa-
tion were no doubt heightened somewhat
by the weekly bank return which, al
though 1t reached an increase IN the bank
surplus. was by no means as strong as
had been looked for.
Bank Statement DisappOints.
Bank loans were reported as decreasing
only S35SZ00O, which. even including the
redue ion Of loans shown last week, did
not at all meet Wall streets expectations
IS to the Improvement of the loan account
caused by the recent drastic marking
down of quotations of securities. while
the increase in bank cash only amounted
10 N-2lss0O, against the S6,oO000O increase
. prophesied in yesterdays forecast
TO a greater extent this week than was
the case in the week preceding the daily
financial news of the period influenced
the security market. Last week the chief
questions asked by observers of the mar
ket had reference to the particular in
dividuals who were being compelled TO
lquidate their holdings OF stocks, and
mostly comprised guesses as to the purely
technical and internal conditions of the
market.
This week the behavior of prices has
been much more normal Favorable in
huences bearing upon the market were
the resiliency impaired by the creation
OF such a large short interest in stocks
as has unquestionably been brought
about by the removal from Wall street
-ssg l.
the medium Of an nnumerable number OF
large and small cash purchases. and by
the disappearance Of high rates for the
use of money on call.
On the other hand the market had to
contend with such developments as those
OF the advance in the Bank of Frances
discount from 70 356 per cent which
took most people in Wall street by sur
prise, the sweeping policy Of retrench-
ment adopted by the Erie Railroad Com
pany based largely, as was declared,
upon the measures against corporate in
terests that have lately been introduced
in our State legislature and continual
evidence of the general stringency in the
money market afforded by such incidents
as the failures Of the municipal loans
offered by the cities Of Philadelphia and
New Orleans, and by Allegheny County
Pa.
Not Enough Capital.
At the close Of the week pessimism
among spectators seemed to be once
more in the ascendant, and operators for
the decline were again attaekin the mar
ket freely. It is undeniable that the vari-
Gus matters alluded to emphasize rather
emphaucally the fact that the underlying
cause of the depression il all financial
OF capital in business the world over is
greater than the supply thereof, even
when there is taken into consideration
the constant enlargement of the money
available for business use through the
increased production of gold. 1T the mo-
ment signs seem 10 favor the srobab.ity
that I'm other markets besides our own
some liquidation of speculative commit
ments for the rise in stocks must take
place.
|ha foreign exchange market, for one
thing. must obviously pass from its pres
ent artificial state. AT present IS condi-
tt0n seems to be of this anomalous char
acteT that London is ewing heavily to
New York, and Berlin and Paris are
owing heavily 10 London, and that the
rates OF exchange between all these points
are such as 20 much more than Justify a
transfer OF gold in the directions lndi-
Gated, and yet that the gold is not moved
because 1t is thought that a disturbance
would be caused If the shipments were
made. 1t is beginning 10 seem TO very
many people that if all this is the case, il
might be well 10 have the disturbance
aud have IL done with, since it is clear
that a fictitious situation is being main
tained which is increasing. rather than
allaying, whatever strain is felt in the
international money market General
business conditions throughout the coun-
try are Of no less satisfactory character
than they long have been. There have
been few, if any, cancellations of orders
at the iron and steel manufactures, and
the advent Of 'seasonabiy warm weather
has given an impetus to the spring
trade in all lines OF mercantile en-
terprises. 1t is said that IN certain points
OF the West sales Of dry goods on spring
account are fully 10 per cent above those
Of last year, and that business for the
fan as thus far placed is also in excess
OF that booked at this time in 1905.
So. too, reports, as far as they have
been received from the winter-whoat
States. are Of the most encouraging char
acter, while the congestion OF traffic on
tie Western lines is decidedly less than
II was few months, or even few weeks
ago.