The Washington herald., 1908-07-13

New York, July 12-The protracted dull
ness Of the stock market, which reached
IN the week before last a pitch OF stagna-
ton that has only once been surpassed
In the records OF the stock exchange
covering the last two decades. turned last
week. as all experience prophesied It was
likely 70 sooner or later. into an active
market and rie'ng prices.
Considering the fact that the volume Of
securities now listed on the stock ex-
change is much larger than Il was on
occasions Of similar apathy in the past,
1t must be conceded that the inertia Of
the market which was reached on the
DAYS Just before the Independence holi-
day was more profound than any hitherto
known. Over this holiday the convic-
uon deepened on the part OF tho Wall
street speculative interest that the leth-
argy OF the market was due, as II had
been on corresponding occasions before.
TO an essentially liquidated or sold-out
condition, and that with prospects for
enlarged business, easy money. and a sat
isfactory result OF the Presidential cleo
ton as bright as they were. there ought
to be no further hesitsncy IN buying
stocks
Moves Up for a Few Days.
The stock market. therefore IN the fore
part Of last week. moved upward in lively
fashion. the strength being. perhaps.
most prominently exhibited on those days
when a goodly proportion Of the trading
element turned into cash the paper profits
on their ventures for the rise. The mar
ket withstood these realizations exceed
ingly we'll SOmebody-whether banking
interests. the public, or other spectators
for the advance-bought the stocks that
were offered for sale, and although sew
eral Of the familiar market leaders on
the stock list closed on one or two days
- a decline, other stocks came into new
prominence and scored decided gains
Buying OF the industrial stocks was es-
pecially noticeable, for which the more
optimistic view as 20 business conditions
and the general understanding that many
OF these companies are in possession Of
larger cash surpluses now than ever be-
fore enjoyed after a period OF commercial
depression were doubtless responsible.
There were undeniable evidences. how
ever, that purchases Of an investment
nature pure and simple. were playing a
considerable part I'm the market
High Grade Bonds Scarce.
The bond market was again last week,
as it was in the week before, one Of d.
versihed strength. bond houses all re-
porting that the supply Of high-grade Sc
curities had become scarce, and that there
were more bids than they could I'll for
investments of this sort. So the market
went on through the week, showing some
signs OF hesltancy. however. toward the
close OF the period
There are now few persons to be found
who deny that there have been In the last
month, and especially In the last few
weeks certain general. even it slight In
dlcations Of an Improvement IN business.
Mr.. Gary or The Steel Corporation, al
luded to these indications when ne spoke
Of the enlargement Of orders for steel
materials In the last fortnight; and the
Steel Corporation Is now running Its mills
at the largest capacity which they have
been operating since last December. What
is commonly forgotten in this regard is
the amount OF business that the steel
mills in the country now get from other
sources than that OF the railroads. a pop
ular and mistaken impression being that
II the transportation companies are not
ordering steel rails, sheet steel for cars
and the like at a normal rate the busi-
ness OF the steel companies must be IN
a parlous state. The truth Is that the
amount OF miscellaneous business that
the steel companies now receive from
other quarters than that Of the railroads
is enormous.
Making Much Tin Plate.
Just now. for instance. the business OF
the United States Steel Corporation in tin
plate. tube. wire materials and steel bars
Is not greatly below what II used to be
IN boom times,
II is a fact known to but few in Wall
Street that the business Of the Inter
national Harvester Company in the pres
ent year seems likely to be the largest
and most profitable since the organiza-
ton was formed. This Is the direct re-
suit, Of course OF the prosperity of the
Western farmers. who are now making
the largest acquisitions that they have
ever made upon the company-for agricul-
tural implements. and this means thar
the steel business in this particular line
Is corespondingly augmented.
On the very first day Of the week the
newspapers were filed with stories Of the
opening Of car shops and OF mills all
over the country, all this amounting 90 a
general resumption of business in many
lines.
The more cheerful feeling in Wall street
was also materially helped by the govern
ment's crop report for June. published
on Wednesday. The report indicated to-
tai wheat harvest of 5S.OO0OOO bushels
above last years yield.
Corn Prospect Fine.
The corn prospect. however. is for q
bumper yield. the area planted to the
staple being 100000 acres more thar
It was last year. while the present
condition Of the crop Is not much
lower than It was 1907 a price Of 20 cents
a bushel for corn with 100. 900. 900 bushel.
harvest impending, seems a little high
while the same objection in view Of al
circumstances cannot be raised 10 tn,
price OF wheat or oats, although this would
not obviate the "sque ea.es" OF which the
grain trade is fond OF in the nearby specu
latlve options in the staples
OF stock market events proper last
week. the only really important one wa,
the decision OF the Baltimore and Ohio
directors to pay the full semi-annual divi
dend Of per cent on the company's
common stock. instead of reducing thi,
10 per cent, as IL was generally ex
pected they would II Is admitted that
the fun dividend was not earned. but thu
company has a large profit and low sur,
plus. and the minds OF the Baltimore and
Ohio directOrs-a body Of men who stand
in the very front rank in the country,
financiers-were unquestionably affected
by the appearance OF those indications ot
business awakening to which referenct
has hitherto been made
Rain I'm Moving plcfuraa