The Washington herald., 1908-02-24
NO MARKET CHANGES
Exchange Continues Narrow
and Indifferent.
FLUCTUATIONS USUALLY RARE.
At Present Season of Year There Ia
Little Incentive for Much Trading.
Missouri Pacific Not borrowing
Money-Trade Balance In Favor OF
United States Never So Large.

New York. Feb. 2s.-Neither IN respect
TO underlying conditions nor 70 their SUI
perfcial exhibition in the security market
was there any remarkable change last
week in financial affairs. The stock mar
ket continued the same narrow, hesitat-
ing. Indifferent, and listless course that il
has for month past
The habitual professional operators sold
stocks one day and bought them the next.
and then on following days reversed this
policy. All of them, without exception.
confessed themselves without settled poi
icy or definite views regarding the future
OF the market. In general. in the earlier
part OF the week pessinaism over the out
took was increased. which was. however.
modified later on when evidences were
presented that the market had become
more or less sold out and 0versoId. and
the most specific basis for this conclusion
was the failure of prices in general to re-
ceoe under the almost sensational decline
in the Gould stocks. II is the time Of
the year when the security market nor
mally acts in just the manner that it is
now doing.
Fluctuations Rare.
The present is a between-seasons. period.
when important fluctuations in security
prices are usually rare A large proper
ton OF those who take the lead in finan-
eial matters in the country are at this
time on their winter vacation. There Is a
general impulse on the part Oft the rank
and file OF spectators 20 give the stock
market a rest for reasons pertaining to
mere personal fatigue; and there is an
equally general realization that the finan-
ciaI forces that viii be paramount during
the year. such as the state or the crop
and those pertaining TO politics. viii not
begin TO unfold. either for COOS or for
bad. until a few months later
This year. owing 20 the universal languor
in a financial sense that prevails as a
result Of last, years period Of storm and
stress. the effect OF all these matters is
notably increased Beyond all this what
the doctors would call the prognosis as to
certain stocks or groups OF stocks has IN
recent weeks been a decided stock market
factor and were il not for the circum-
stance that low range Of prices had
been established would undoubtedly prove
10 be a distinct cause for unsettlement.
May BE Drug on Market.
What Wal street Is wondering about is
whether In the case OF not al or the
greater number but Of some existing rail-
way organizations not merely dividend
distributions but bond interest can be
maintained on the present scale OF de-
creasing earnings. and naturally enough
until greater light is thrown upon the
question the matter VIII be a drag upon
general security values. The particular
drop in the Gould stocks last week was
rather puzzling 70 the majority Of people
in the financial district.
one explanation OF he-fan was thsi
the declaration OF scrip instead Of cash
dividends upon the Western Union and
Missouri Pacific shares had brought into
the street a large quantity of additional
stock Of each one OF the companies named
because OF the desire OF the small IN.
vestors who received the scrip to turn Il
into ready money.
Another story was that a large loar
upon some Of the Gould stocks was being
7
bility was lent by the fact that the de-
clining movement was not limited 70 one
or two. but embraced nearly ali the Gould
securities.
Missouri Pacific Not(BOrrOwIng.
The recent earnings statements Of tht
Missouri Pacific. while they have beer
poor, did not Indicate that BY any posi-
bHity a receivership Of the road il neal
at hand. and it is known that the Mis-
souri, Pacific has been TO less extent
than that Of any other Of the leading rail
way systems OF the country a borrowe,
Of money IN the last few years. Tn,
truth probably is that although al these
factors contributed in some way 10 The
decline speculative attacks upon the
Gould stocks had as much to do with the
fall as anything else.
Stories that the Union Pacific company
was again 10 appear as an applicant II
the money malSet. this time asking for q
loan OF SS5. 600 900 or $40 COO eco TO extinguisl
its floating debt and furnish money fol
other immediate necessities. were AGAR
heard last week and received a partia
and semi-official confirmation. coupled
with the statement. however. that such
borrowing was not TO be made immedi.
ately. and that ii could probably be read
lily conducted. inasmuch as the Union Pa.
cifc possessed 1850 miles OF new line.
that it could offer as security for first.
mortgage bond issue.
Union Pacific Rallies.
The Union Pacific shares. which wer.
weak under this discussion. rallied latei
upon the announcement OF the decision
of the courts of Illinois giving I,
the Union Pacific interests practica
victory in the contest with Mr. Stuy.
vesant Fish and his friends for tn,
control of the Illinois Central, although
statement that the contest is definitely
over is undoubtedly premature.
A development of the week that, al
though it attracted more or less atten
ton, still was without any market fore,
so far as could be observed, was a Sigh
quotable increase IN rates for the use o.
time money. Part of this appeared Il
be due 10 the conclusion of banking in
tereSts that time money was being cur
rentIy procured a good deal cheaper thar
it ought 10 be on general principles, ans
partly to some prudent thought takinJ
regarding financial exigencies later il
the year The deficit in the current gov
eminent revenues is so increasing tina.
the total deficit at the end of the fisca
year will probably be nearer $50. 900 90
than the $s0000.C00 estimated some tim,
ago by the government authorities. Will,
on or about August 7 next the govern
!