The Washington herald., 1908-06-01

New York May Slater a decline,
which. in the course Of about eight days,
extended TO as much as ten points or more
in some Of the leading active stocks, and
to about six points on the average for all
the active railroad issues, the market at
the end OF the week renewed its upward
tendency under the influence Of ? broader
buying demand than had been seen at
any time when the last movement Of
prices was in the direction Of higher
values.
Substantial interests which before had
taken little or no part in the operations
for the rise became active buyers. as was
attested by the manner in which the
stocks usually favored by them took the
leadership on the advance, superseding
to considerable extent others that had
been relatively much more prominent ON
the rise which eliminated two weeks ago.
The entry OF these new interests into
the market was occasiOned by the I'm
provement which has occurred in several
lines of iIIsiness within the last couple
Of weeks notably in the iron and steel
industries The improving tendency Of
values toward the end Of the week was
restrained by severe break in the Sc
curities Of the Gould roads on the near
approach Of the time for the payment of
the coupons on the bonds of the Wabash
Pittsburg Terminal Company, falling due
June !, and on which, as early as the
middle Of the week. II was generally be-
lieved default would be made.
Small Fund for Dividend.
A further disturbing influence IN this
group OF securities was the publication
/ OF the statement of earnings % the MIS-
souri, Pacific system, showing that in the
nine months ended March 81 the surplus
available for dividends was slightly less
/ than 8 per cent making il practically
certain that in the full year the eQuiVa-
/ lent Of a per cent dividend could not
/ be earned, and that a more conservative
| policy in regard 10 disbursements Cd the
stock would have TO be adopted. IL was
afterward strongly minated that the
management favored a total suspension
| OF dividends for the present. and that
this would In all probability be approved
by the directors. Ii was probably for the
reason that the market had pretty thor
oughIy discounted a receivership for the
u
satlon OF dividend payments on the Mis-
souri, Pacific that the general list was 50
little affected by the break IN the secu-
rifles of the Gould roads, the turn IN
whose affairs is by well-informed per
sons, expected 10 cone with the appoint
ment OF receivers fer the -Wabash-Pitts-
burg Terminal Company. The course Of
the currency bill through Congress was
watched by Wall street with only Ian
guild interest, the financial community re
garding the measure as at best only I
provision for a contingency that at rres
ent appears 10 be remote
No Cut in steel Prices.
The wisdom OF the course adopted By
the conference Of steel interests at which
the decision was reached that the present
prices for finished products Of iron and
steel should not be reduced has now be
come apparent, for already there is az
enlargement Of inquiry that foreshadowi
a considerable Increase Of activity in IN,
industry within a short time unless th'
political outlook should give rise TO re
newed apprehensions. Even the pig-irol
market. which a couple OF weeks ago wa
practically demoralized. has strengthened
materially since the breaking OF the dead
! lock between producers and consumers b,
, a temporary reduction in the price of tn
commodity. which resulted in a consider
able buying movement; and although
quotations have since been raised, con
sumers are placing a fair volume Of or
E ders at the higher level
, In the cotton industry, until recent
, one of the most depressed lines OF Ameri
can business, q marked revival has take
place since the manufacturers succeede
e In reducing wages 10 an extent which en-
: ables them to quote prices for their prod
. uct that are acceptable TO the trade, an
7 number of mills heretofore shut dow
or running on short time only have be
gun TO re-emP,av operators with who's
services they were forced to dispens
when the business fell into a conditio
OF practical stagnation.
Effect Noticed at Once.
The effect of the reduction IN wages q
= operatives in causing a revival of actiy
y ity In the cotton trade has led many
Wall street 20 argue that had the ste,
!, manufacturers lowered prices. as was. {
: course, done by the makers of cottO
goods, heavy orders might have you're
d into Pittsburg; but this argument 10:
5 sight Of an important difference in cond
o lions in the steel and cotton trades. fC
: whereas In the latter prices have huctJ
p ated with demand. the makers OF ste,
= have consistently held to a fixed priC
o schedule.
: A fair Improvement IN the wholesal
demand for dry goods has been notice
In the last ten days, and the retail trad
Is reported better in New York and, to
greater extent, in Philadelphia. The r,
= turn of government deposits by the loo;
banks has produced no effect on II
money market, and the heavy expo
movement OF gold. in which about $3S