The Washington herald., 1907-02-04
SEE END OF DECLINE
Some Traders More 0ptimiS-
tic Than for Months.
BUSINESS OUTLOOK IMPROVES
Fear of Drastic Measures by the Ad-
ministratiOn Against Railroads
Legislation from State Authorities
Seems TO Be on the Increase.


consecutive business week, ending last
Thursday, prices in the stock market ex-
hibited the effects of the same uuyield-
ing pressure to which they had been sub
iected almost continually through the
month of January, with this difference
My, that toward the last the pressure
vas more vigorously applied On the last
no days OF the week the market was
again steady The action Of the market
throughout an this period has been Pc
7uliar. indeed almost phenomenal. The
history of Wall street contains few par
-llels of a steadily declining movement
Ike this carried on for SO long a time
without eliminating in a severe break or
lime of semi-panic. The year 1906 was,
taken through and through, a period of
falling prices. and in the latter portion
OF the year the movement became pro-
nouuced. On top of this during the three
weeks from January the average price
of standard railway stocks in the market
dropped ten points.
II there had taken place earlier in Ian
AIRY a sharp and sudden fan in the mar
ct, sentiment regarding the future of
istic since the event would have indi-
ted "a probability that the decline had
lched its nadir. As il was a multitude
spectators who from time to time had
ught stocks on the idea that they were
cap were compelled a little later TO
row chem over upon the discovery that
decline was still in progress. Nat
ally when d market goes on falling in
is way there is no predicting when
fall viii end, and buyers of stocks,
se those who make purchases with the
"a of retiring commitments for the fail,
20 be scarce.
mother popularity Of the market has
On that the decline has been Unacccm-
ricd with any particularly bad news. II
ere he excepted the impression that has
me out and that is seemingly wei
Inded that the administration at Wash
ytou is running at fuller tilt against
operations than il ever has done before,
acre has been no definitely bad news of
MS kind I'm the situation. The bulk of the
ews has been good. There was a slight
Sc i'm money rates toward the end of the
l0nth. caused by various financial prepa-
ations that had to he made at that time;
ut the rise was really smaller than fl
Jgically should have been in view of
lese matters.
Snow BIOckades Frequent
There has been this winter "a good deal
f interference with railway operations
a the Northwest, caused by the cold
-cather and snow blockades. but these
fndrances have been by no means sufi-
ent TO justify pessimisuc forecasts con
.rning railway business in that section.
uch difficulties as have been encountered
ave been those usually attendant upon
-inter seasons. and they only attract at
9ntiOu now because little has been heard
rom them in recent years. There was
ldless TUuOrs current also in Wall street
ffacting the credit of a great variety of
eople both here and in London. and yet
hese were stories such as are always
ic8rd in the course Of "a declining market,
and up to the present time the. has
been no important naturalization of
them.
Every one knows that losses have been
sustained I'm the market in the course of
the last thirteen months by uumberless
firms and individuals What has been for
JtJen is apparently that all of these
eOple have made a great deal of money
uTinE the last ten years and can now
'iJhstand mlsfOTtunes that q decade ago
light have crippled them. On the other
and, prices of stocks as they went on
clining fell To levels where the secuTi-
IS purchased began 20 yield from To 6
cent on current dividend returns, IT.
-spectiye of the immense value of
iUities included in their acquisition. Bus
ess over the country continued splendid
nd time money could be borrowed for
lg periods at Jia per cent or under.
Il why. therefore. ON any calm view of
situation there should be such inces-
e market liquidation was little diff
TO understand.
Traders Sold short.
would be proftless perhaps to exam
into the question as to the extent to
aich speculative operations for the fan
the market were responsible for the
ecliue that occurred. There is not the
ightest doubt. however. that these opera
ions had much 20 do with the recessions
n prices ana. it may be assumed. the
initial impulse for the movement in this
direction. II is known that very many
large and active SPECTATORS. whose out
spoken optimism concerning the market
few months ago could hardly be re-
strained recently entirely shifted their
market position and were found last week
declaring that a fall of between 90 and 50
points more in prices must occur before
the market would do TO buy" The sell
ing of operators like these. at a time
when general speculative sentiment I'm
Wall Street is weak and dispirited. sup
plies q market force whose p0tentiality
-annot be mlnimized
Making all due allowances CT this kind.
Fa ra NJ
reason for the weakness Of the market
was heavy and persistent liquidation Of
stocks. and it must frankly be said that,
Though prices at the close Of the week
Inhibited more resiliency than they had
one for some time previously, unccr-
ainty appeared 20 be afforded that the
all In the market was over There were.
any rate. no indications that the rally
lat took place was any more than that
ccasioned by the retirement or partial
stirement OF speculative contracts for
ne fall. Indeed, 81 the market of the
asst six months affords any ground for
reelection as 10 the course Of values I'm
ne future the only way of telling when
Re decline has ceased viii be when an
pward movement in prices gains such
trong and unmistakabie Roadway as to
ttost that the previous falling move
nent has at last entirely spent its force
Much obviously depends upon the atti-
ude that the Federal government pro-
oses 90 take in the next year OF 50 in
l&tters affecting corporate interests As
he result of the attitude that has been
dODted in the past the idea has been in
Ulcated upon governors, attorneys gen
raj, and State legislators. and officials
{ every degree that the surest way 10
lin political preferment and the favor
+ the popUlaCe is 10 attack corporations,
articularly those engaged in public serv-
2; and there IS, therefore. at present
= country over an amount Of hostile
lslation proposed against these cor
ations unequaled even in the days of