The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1908-05-24
BREAK IN STOCKS
MAKES HEAVY Loss
Magnates Who Have Been
Holding Market Quickly
Regain Control.

NEW YORK. May 2S.-For the first
time Ia weeks. almost months. the New
York Stock Market has suffered a Sc
were relapse. The long-belated reaction
has arrived; at first with apparent In
tent TO stay, Sut the magnates OF the
pals. who have been holding up the
market with a firm hand, soon resumed
control for startling recoveries.
But the procession that has been trail
ing the leaders stopped short and would
not follow any longer, unloading stocks
right and left. transferring profits from
paper 70 bank accounts and cutting
these in their anxiety 10 save some Of
the gain.
The net losses for the week ended
today vary from TO 10 points on the
leading railroad shares, as we'll as on
some Of the industrials, but are not so
severe on the leading industrials-Steel,
Copper, and SHELTERS.
There was as much excitement In the
market, as many thrills and throbs, as
usually are found IN a modern novel;
many chances for getting in and out Of
the market with a little profit If one
could but guess IL right.
The public has been doing a little
more than nibbling of late; II has been
buying stocks largely on margin. but
In smaller amounts than ordinarily, this
being an evidence Of conservatism. The
evident perfect control Of the Harri-
n-GouldStaudard OIL combination
has impressed itself upon the room trad
ers as well on the public, and they
have simply been following, nor did
they get out to any extent on two or
three dOWn-turns that the market suf-
1ered during the week, although today's
tobOgganing exhibition was rather too
much for their nerves. and they sold
right and left
Had Little Trouble.
From the earlier breaks the market
had but little trouble recovering. at
least partially. Indeed, one route WAS
Surned into a strong. active market
In the closing hour OF a session. It is
scarcely probable that the powers that
be are ready to stand from under. al
though they must have distributed a
large amount of stock; but they still
have financing plans that may lead
them to take bold Of the market and
push II up for a good recovery.
The influences that naturally AFFECT
the stock market stin are lined up on
ihe side of the bears: that is. they are
generally unfavOrable. Thousands hmm
dredS OF thousands of idle freight cars
aSLanding on TuSJed tracks. locomotives.
7zsundredS of them without fires ali
sal-ing, waiting for the resumption Of
7lrospSrlty.
AS a matter Of fact, the situation is
largely akin 70 what II was twelve
yeas ago, on the eve of the Presiden-
tai election that returned William Nc
hInley as President in the matter OF
DnnAtnHEA nETFTaEEfTn
hands and political matters badly
mixed.
There are conditions that probably
W., WI oeIy even the financial strength Of
4 the combination from holding prices
anywhere near their present price.
Gold Is Returned.
OF the sIOo,OO00OO gold we got from
Europe IN the stress Of the panic. We
have returned $4,000. 600. The failure Of
Congress 10 evolve a currency measure
Tor the relief OF the nation IN the event
7Of a financial stringency is a serious
blow in itself, as the Vreeland measure
certainly would have been OF much use
pending the revision of our currency
Z system-if that Is really what the pro-
g posed Congressional commission has in
View.
Il IL Presidential year, and there is
much uncertainty in the air The ma
tiOnal treasury is Withdrawing much
p currency from the banks, and win grad
uaHy reduce the balance. Business is
i improving, perhaps IN the iron and steel
trade and cotton trade. but slowly.
General business is not good, and tho
railroad earnings are disappointing
That Hartman ct al have been able
to bull the market IN the face of these
conditions is tribute 10 their financial
strength and ability to draw a follow
Ing in tlair movements. Such good
Judge of market Influences as Henry
. C1eWs recognizes The character of the
Influences at work.
"SinCe the panic. prices have risen
from 20 to 90 points, an advance out OF
all proportions to the Improvement iu
general conditions. and one that must
be attributed 10 the manipulatiOns Of a
few powerful operators having an
abundance of cheap money" is tho way
51dr. CleW6 sizes up the situation.
VIII Shorten Period.
He also calls attention to the infiu-
,ences that will shorten the period of
easy money. the deficit Of the Treasury,
the export OF gold and the Withdrawals
of the Government deposits. And back
OF this is the period of crop movement.
with its stringency-perhapS emergency.
Mr.. Clews urges some kind of a safe
guard against paniC-sOme emergency
measure TO bridge over the situation
until permanent action is taken,
The break IN the market on tho clos
ing Cay of the week was the most sew
ere. The leading rails, the inflated ones,
that have been used TO lead the upward
flight. lost 4 to 3 points, others l TO 3
and some industrials ] to 2.
The close of the market was right
down near the bottom. although there
was q slight up-tuTn. due to covering
BY some bears who sold on the break,
on the tap of the bell.
A study II the price-list for today's
market viii indicate the full effect OF
the bear turn