The Washington herald., 1907-01-07
STOCKS ARE STRONG
Wall Street Begins New Year
i'll Promising Manner.
CONSERVATISM THE KEYNOTE
Some Latent Fear shown over Elias
tic Currency PrOpOsitiOn-Inter-
state Commerce Commission Inves-
tiEatfcn of Hartman Lines Fails
TO Disturb the Market.


market. broken as it was by the New
Years holiday. partook up to the ex-
treme latter part OF the period OF the
same desuitory and more or less feature
less character that it did in the week
preceding. Prices of stocks, however,
throughout the week slowly, but steadily,
hardened and at last rose sharply, reflect
ing in their movement. naturally enough,
the frightened prospect for values that
had come about since the beginning Of
the new year.
Confidence so grew that liquidation in
the security market had been completed
that the money situation was on the point
Of decided and permanent improvement
and that many factors that had depressed
the market mad lost their force. Rather
especial pressure was in the fore part OF
the week brought to bear upon Union
Pacific stock. due to the knowledge that
the investigation of the Union Pacific
system by the Interstate Commerce Com
mission was to begin in this city on
Friday. but the results Of the first days
session of the commission were clearly
such as to cause speculative buying
rather than selling of the Union Pacific
shares.
Expect Increase of Dividends.
Amalgamated Copper stock was strong
during the entire week and buoyant at
the close, owing to the general and pre-
sumably weH-founded belief that develop
ments in the way of increased dividends
on the stock We're impending. 1t would
also not be surprising if "a scheme was
maturing for making up to the Anal
gamated stockholders the dividends that
were necessarily, reduced some years
ago. common matter Of observation
for a long time back has been the vivid
contrast presented by it to the market
during the corresponding period year
ago. Then, although call money rates
were at figures almost Enthusiastically high.
a wild state OF frenzied speculation for
the rise was in progress. Transactions in
stocks were on a very large scale and
Wall street was the scene of great eX-
Citement,
Quietness and an indisposition on the
part of the great majority of spectators
to make ventures either for the rise or
fall in stocks prevailed in Wall street
throughout the last four months of last
year, the cause of it all being. of course,
an undercurrent Of feeling that the gen
eral financial situation had become such
as 20 warrant conservatism. Yet it was
this same sIowness of pace in Wall street
that during all this time kept undimmed
the faith Of the people regarding the ulti-
mate favorable outcome of financial
affairs.
Conservatism the Keynote.
Our business men and our great lead
ers in Wall street. instead of being swept
off their feet by the immense prosperity
of the country, are maintaining their
equipoise and taking their measures ac-
cordingly. This means in all human
probability that whatever perils pessi-
mists have been predicting for business
in the country in the current year viii be
avoided. and that another year of soundly
based and magnificent prosperity for our
country awaits us.
There are two aspects of business life /
in the nation to which attention has often
been directed, which again recur point
edly at the present moment One Of
these is the increased tendency of the
business men of the country toward
policies Of conservatism and cautious
ness as compared with those often
adopted in former. years. While there IS
no abatement of initiative no lack of
energy and push there is an element in
business plans in the United States Of
taking thought of the morrow" of self
restraint. OF a continual raising of ques-
tons whether the boom in this or that
business might not be overdOne.
Plungers there are in Wall street. and
always viii be, who have met and al
ways will meet with the inevitable fate
of their class, and speculative operations
for the rise must invariably attend such
a vast development Of business in our
country as has taken place since 1896.
Latent Fear over Elastic Currency.
Among spectators in Wall street great
Urgency is naturally claimed for the
passage at the present session of Con
gress of the measures for the reform Of
the currency recently recommended by
the American Bankers Association but
while these measures are still COM
mended by thoughtful people throughout
the country, the opinion is manifestly
gaining ground that it might not be over
wise after all 10 stimulate for the time
being business activity or speculative en- /
teTprises by anything to which in any de
gree could be applied the name of in
hation Of the circulating medium That
there has already been great increase
in the circulating medium in the last few
years is a matter OF record, and there
are those who largely attribute to this
rather than to the normal influences of /
supply and demand the rise in the price
of commodities that has taken place.
It is needless 20 discuss here these
varying contentious, but only 20 raise
the suggestion whether the need of the
country, for the time being, is not an
increase Of its facilities for the conduct
of business, rather than the further de /
velopment of new business itself, and
whether, also the constant increase in !
the supply Of money that is now taking /
place through the production Of new
gold and the enlargement of the bank /
note circulation viii not provide what /
ever additional cash is actually needed ]
for the settlement Of balances in mer- |
camille and financial transactions.
Money Market Stronger.
The one signal development Of the week
in Wall street was the great change for |
the better in the general money situa- /
ton. There was a practical disappear
ance Of the premiums recently bid for |
the use of time funds. while bank re-
newals Of loans made on call were cut |
down successfully during the week. un- /
I'll on Friday rate Of only 81 per cent /
prevailed for money for use until the /
following Monday. Early in the week
there were a number of indications that /
the financial position IN England had be- /