The sun., 1908-05-10
EiNANCIIL ANp coMMERCIAL.
SATURDAY, May {

Sock ENcnange sessions Of the week IN
which an advancing movement in prices
has been witnessed was the fact that to-day
broadening tendencies in the market seemed
greater than at any previous time, Buy
ing Of stocks was no less active than It has
been hitherto, but to-day instead OF con-
verging on two or three speculative favor
ties or leaders it occupied Itself with the
general list Of railroad and industrial shares
as a whole and carried the average level
NJ t.si market TO the highest point OF the
vsar. A notable advance Of points did
occtr. however, in the Chesapeake and
Ohio shares, for which the only explanation
that Wall Street could offer was that a large
L,<a banking house now In possession OF
Quantity Of the stock which II bought from
the Pennsylvania Railroad Company was
desirous Of making better market Tor the
shares. The stocks Of all the railroads
directly or indirectly engaged IN the coal
carrying industry we're also particularly
strong to-day not only on our own but on
peigbboring stock exchanges. Prices In
the market closed at or but little below the
was also abundantly maintained. Antici-
pations regarding the weekly bank state
ment dill not figure at all in the trading
although the statement was hardly up 10
Yesterdays promise. The cash held by
the banks increased by 50 600 600, as against
Yesterday SlSNOWO forecast while bank
loans increased So 100 eco, actual figures
being taken The result, however, was a
further upbuilding Of the actual bank sur
plus in the sum Of IS 800 600. The showing
made by the trust companies was not as
favorable. inasmuch as the volume OF lend
ings by them increase s23s23 800. The
meaning Of this is probably that, as was
the case last week the financing Of the
weeks speculation In stocks has been
largely conducted by the trust company
organizations.
II is generally admitted that the rise in
the stock market this week and for that
matter for several weeks past has not been
due to any particular change in the state
OF financial, political or industrial con-
ditons, and Wall Street has been filled In
the period with various theories as 70 the
cailse Of the movement, which are, after ALL
not very satisfactory. II was evident for
cne thing that the business Of the large
commission houses at least that portion Of
IL drawn from the orders Of the general
public, was not increased, nor did close OBJ
servance on the floor Of the Stock Exchange
Justify the assertion that the leading pro-
fessional room trading spectators we're
taking any more active part in the market
than In conducting their usual scalping
operations, which In the main are closed
cut daily A iavorite suggestion has been
that the rise was inauguratei for the pur-
pose chiefly Of helping along sales OF yari-
Gus railway bond issues and there is no
doubt that enforced purchases 10y unlucky
speculators for the fall have played de-
ciIed part in the rise An impression at
enc time current was that the advance was
connected with the improvement in senti-
ment in the railway world due to prospec-
tive elevation in railway freight rates, but
this supposition was negativet by the dis
covery that the railway managers we're not
at all agreed upon the subject and that 1t
WA altogether probable that II such an ad-
ys.ra was inaugurated II would not be done
until considerably later period, perhaps
not until after the fall elections. The genu-
inc strength Of the market was, however,
unmistakable, and In whatever manner II
ori 7inated. il was manifestly materially
assisted by the circumstance that the rising
tide OF quotations did not result in any con-
siderable enlargement Of the quantity OF
stocks Offering for sale. Another favoring
condition is that the crop prospect in the
country Is above the average and is GER
tainly a good deal better than it was at this
time last year. And it seems, too, as If the
prices that will be realized from sales TO
foreigners Of cur lending staple products
will be highly remuneratiye, with the
single exception perhaps, Of cotton, where
the indications for full crop accom-
panied with the heavy carrying over Of
cotton from last year and the reduced con-
sumption Of the article consequent upon
trade depression has resulted IN some
what lower range Of prices for the com
modify than has been seen in recent seasons.
IL will not improbably be found when
the development Of the present situation
can be traced from its beginning to its end
that the fundamental cause Of the note
worthy advance in prices seen in the last
two months has been the plain and ordinary
factor Of the plethora Of money now resting
In all places oi deposit the country over
Few people who havo paid attention 10
the financial history Of our land in the last
ten years cannot, bat he impressed with the
fact that therc has been bred up among us
in that period a race Of gigantic capitalist
speculators The personal resources OF
these men--to make no mention Of that OF
the great financial insti.Itions whose doors
are open to them-are counted In many
individual cases not by few millions but
scores OF millions OF dollars. and they buy
and sell stocks not In a few thousands but
IN hundreds OF thousands Of shares. II
was through their operations that the price
Of Union Pacific common stock, for in
stance, was moved in a few years from
practically nothing 10 a quotation Of sls5
a share and then in a tVelvemonth was
depressed again TO 500 a share. Nov tie
stock is on the way up again and the ques-
t!on when Il will stop makes an interesting
piece Of guesswork. Indeed it ia held
by certain keen students Of stock market
affairs that as long as money can be as
oheaply borrowed as it is now thero will
be- no pause in general advance in the
price Of stocks until the time comes when
railroad and corporation earnings begin
to Improve, the idea being that the great
speCulators who have bought stocks will