The Washington herald., 1907-03-17
PrOft-taking Fails to Stop
Upward Movement.
FOREIGN DEMAND IS STEADY
Presidents Attitude Said 40 he Mis-
understOOd-Bank Statement some
what UnfavOrabIe-Weak Holders
Frozen Out and Many Stocks Fall
Into Hands of Cash Investors.

day, following the higher level of quota
tons received in London, opened with
considerable advances from last night 5
close. the most important being in New
York Central and Reading, each of which
were up ia points: Union Pacific, St.
Paul, and Northern Pacific were up a
point or more, and the United States Steel
issues were up ~ points for the pre-
ferred. and nearly point for the common.
Among speciafties Great Northern ore
certificates and National Lead were most
conspicuous, the former at an advance of
two points above the rise, and the latter
was stin higher The high opening
brought some proht-takirg in the first few
minutes OF trading. but after then, except
for a slight reaction following the publi-
cation of the bank statement the course
OF the market was generally and strongly
upward. until just before the close. when
proht-taking occurred in such stocks as
Union Pacific. the rapidity of whose ad-
vance invited this sort of operation over
the weeks-end.
Operations for the rise received impetus
from the published interviews with two
prominent fnanciers, in which the view
was expressed that the attitude of the
President was misunderstood, while the
continuance OF buying demand for stocks
from abroad was further factor con-
tributng to the recovery.
The weekly statement of the associated
banks could hardly be regarded as favor
able. loans showing Il decrease Of only
about $lS00Q000 whereas IT had been ex-
pected that the item would show a reduc-
tion Of S3o.O0cOO0 or S4O000OOO. as "a result
of the liquidation in the stock market dur
ing the week, but apparently the belief
that the fun amount of the reduction
would not be DISCLOSED until next week
deprived the figures of the Importance
that would ordinarily nave been attached
10 them.
Does Not Encourage Buying.
The advance in prices at the expense of
the short interest did not invite buying
from those who were not obliged TO pur-
chase stocks for the purpose of retiring
contracts, and there was "a manifest dis
positions on the part of those who were
not committed TO either side of the mar
ket 10 remain out for the present. Per
haps as fair generalization as any that
can be made concerning the state Of mind
. in which Wall street finds itself at the
end of the week is that while Wall street
is IN no doubt whatever as TO the broad
reasons which We're responsible for such
a lack OF buying power in the stock mar
ket as has been exhibited for more than
a year past and was particularly shown
IN the great declines in values that have
very recently occurred. it is not d little
bit puzzled to underst ind the precise
source and occasion Of sucA an almost un-
precedented selling movement as broke
out in the market last Wednesday and
Thursday
Making all due allowances for the one
known factor that was in evidence, the
free attacks Of spectators for the de-
cline on the market which. resulted finally
IN the closing OuI of accounts OF many
large spectators who had before i'm
asined themselves fully enabled TO pro
tect their holdings against any onslaught
that might. be made, it is still difficult to
understand just what leverage was used
10 put upon the market such enormous
blocks of the standard and industrial
shares as were in fact disposed of abso-
lutcly without regard TO price II this
was bear selling. it was bear selling
OF very extraordinary character and
Wall street is for the moment hesitating
between the opinion whether what went
on was some great financial coup. exc
cuted by capitalist powers Of the first
rank, or whether it represented the stress
to which these same powers themselves
We're subjected by certain circumstances
and conditions that are not yet fully un-
derstoOd. There is no doubt. of course.
that the entire situation has been greatly
benefited by such liquidation as has been
witnessed. To "a large extent stocks have
passed from weak hands TO strong. and
an actual investment support has en-
tered the market of kind that has really
not been extended before since the year
1909.
Stocks Fall Into Strong Hands.
At such prices as We're recorded for the
leading stocks OF Thursday it would
have been ia marvel if buying of securities
10y those who were enabled to nay. and
did pay. actual cash for them had not
taken place To Il very great extent II is
matter for very serious consideration.
however whether the time is yet ripe
for any broad and upward movement in
the general price of stocks With the
single exception Of the fact that the re-
duction in stock market valuations has
taken place. the same influences that have
for SO long a time initiated against the
stock market are still in operation: and
il is Il question to be graveiy pondered
whether such an advance as was made in
the two final days of the week in these
valuations viii induce investment buying
OF securities
This advance has admittedly been for
the most part TO covering of short con-
tracts. After this process has been COM
pleted will the technical speculative posi-
tion OF the market be as robust as it was
before2
The efforts of Mr. Morgan to arrange
a conference between the President and
the representatives of the country's rail-
road systems at which there should be "A
full and fair discussion OF the relation that
should exist between government and the
railway corporations OF the country. Il
seems has come to naught. The State leg
islatureS throughout the country con-
tinue 10 pass 2-cent fare bills and an
extra session of the legislature of the
State of Missouri is now to be called for
the purpose OF passing a public utility
biil modelled. presume bly,. upon the lines
of the one introduced in theIegfslature OF
New York. Similar bills viii no doubr
follow in many other States
Money St1n in Demand.
The hardships of the general money
situation are still pressing. 1t is 10
easier to-day than it was week ago for
the railroad companies and other cor
porations TO get money from the public
for the purpose of extending their enter
prises or even continuing improvements
that have been begun, and the stock
markets Of Europe have problems that
they too as well as our own must answer
Mr.. Hartman and those associated With
him Stil remain in control of the great
Union Pacific Railroad property and will
probably continue to make the stock of
the company in the future, as they have