The Washington herald., 1908-03-06
ADVANCE AT OPENING
StagnatiOn Follows on Small
PrOfit-taking Sales.
NO LIQUIDATION OBSERVABLE
street Strongly Impressed with the
Belief that the Worst Is Over and
n Return of Prosperity Is In Evil
dence-PIeased with Bank of Eng
lands Reduction I'm Discount Rate.

New York. March 5.-Although during
the past fortnight the undertone of the
stock market has been pereeptibly frmer
and prices have been goverened on the
whole by an advancing tendency, specu-
latlve sentiment is so depressed and
the inertia in the stock market so pro-
nounced that gains in market valuations
have been mostly in the nature Of spurts
even II on each occasion considerable
share of the gain has been retained.
The present character of the market
was again exemplified to-day. An upward
movement in prices made some headway
yesterday, and was continued over into
to-days stock exchange session. re-en-
forced by the mornings development of
a reduction IN the Bank Of Englands
discount rate; but after this rise had run
little way it stopped and the market
reiapsed for the rest of the day into COM
plete stagnation. such changes in prices
as then occurred being largely as the re-
suit Of small profit-taking sales. The net
consequence of IL all was a mixture of
trivial advances and declines in the lead
Ing stocks with the volume of transac-
tions decidedly below that of yesterday.
stocks Remain Scarce.
There was no denying. however, tina;
the market again gave proof Of the
radical change that has recently come
about in its general temper and situation.
No liquidadion is observable. stocks are
scarce and It is obvious that commercial.
mercantile. and manufacturing business
throughout the country is mendng.
While. therefore, other factors. such as
political matters and the natural work
ing Of influences always attending upon
a period OF slow recuperation in the
security market after a disastrous panic
may continue to affect values for an
Indefinite further time the consciousness
is steadily gaining ground in the financial
district that the worst, both in business
and the stock market prices. has been
seen and that from now on things viii be
better.
The United States Steel stocks were
perhaps particular features Of strength
to-day by reason Of the undisputed ad
mission of the Improvement now visible
in the iron and steel business. and be-
cause of the fact that evidence 10 this
Improvement can be easily accumulated.
Advance in the Northern Pacific shares
started up again the old rumor on the
floor of the Stock Exchange OF a pos
sible extra distribution upon the stock.
Car I'm Sharp Advance.
The American Car and Foundry COM
mon shares rose sharply at the opening
of business because of the decision of the
directors OF the company to continue divi-
dends on the stock at the old rate despite
the company's poor business prospects in
the immediate future. The surplus ac-
cumuIated by the American Car and
Foundry Company as the result of the
exceeding profitable operations OF
previous years is, however. large.
The Great Northern Ore certificates
were again heavily bought by commits
sion houses, usually acting for inter
ests identified with the control Of the
company. and the current explanation
for the movement was that the dividend
distribution upon the certificates was
likely TO be increased
The Bank Of England's reduction Of its
discount rate to 3la per cent was neces-
sarily pleasing. although the matter had
been pretty well anticipated. because Il
is the lowest discount rate of the bank
seen at any time since September 1905.
and the lowest recorded at this rate since
1905. The underlying cause of this action
is, of course, the slaCkening Of business
in England which has been felt there
no less than in the United States. and the
event strongly indicates that our cOun-
try will keep within its borders in the
present year. or at least for many months
20 come. the gold received from Europe
in last years troubles