The Washington herald., 1908-03-09

New York. March S-The course Of the
market for securities last week was pref
~ nearly exactly typical Of the conditions
in the general business world.
There was no boom or signs OF a boom.
but there were many evidences OF a slow.
steady. AID sustained Improvement.
Prices for stocks slightly but constantly
hardened. giving signs Of the presence
Of what Spectators call a creeping bull
market" There was no rush TO buy
stocks, nor indeed was there any great
volume Of buying at all; but there was an
entire absence Of pressure 10 sell. even
when bad news came, and On such
occasions the market. after pausing for
a while. generally resumed its slow up
ward movement as If some silent but
resistless force was behind IL
There was 10 attempt 70 minimize
either-the fact or the causes leading up
20 the weakness in certain particu-
lar securities. but there seemed 10 be
no great desire on the part OF hold
ers OF even these securities 10 transfer
their investments To other hands The
periods Of advances in the successive
stock exchange sessions were, It Is true,
generally shOrtlived-
Momentum Is Maintained.
After a rise in the market had covered
one or Two hours time IN any day II
usually ceased and was succeeded, after
a period Of utter inactivity, by a reeed-
ing movement. that was in turn quickly
stopped. Nevertheless. right al the end Of
the week the momentum Of the upward
movement was manifestiy increasing
The great mass Of professional specu-
lators in Wall street are stu 20 outward
appearances as profoundly pessimistic as
ever and declare that they cannot see
what reason there is why any one should
buy stocks. At heart they are not az all
pleased with the way the market Is act
ing Nothing IS more unpleasant TO
Spectator for the fall. even If for the mo-
ment the phenomenon may not induce him
10 breat an entire retreat from mis- posi-
Jion, 20 ind himself loaded with commit
ments for the decline and confronted BY
I a market in which. after d long period OF
I falling prices, activity has sunk % a mini
mum.
/ The meaning OF the situation IS thai
liquidation has spent IFS force, that the
/ greater portion Of stocks have passed into
/ the possession OF people who actually own
I them and believe-probabIy correctIy-Jhat
I their market price has more than dis
counted actual or impending adverse de-
velopments and that scares or alarms OF
one kind or another as they come along
are universally understood as being mere
! y echoes Of past disturbances
Confidence Is Returning.
But beyond all this there are unques-
l tionable Indications Of returning conf
deace and OF lettering conditions n al
( business directions. They are as yet
small. but they point to a turning OF the
/ tide. The surplus OF idle cars on the rail-
way lines. that was $4,000 on February 5,
was down 20 s2aOO0 on February Is. These
are the Official figures OF the American
/ Railway Association. and II is aUthorita-
lively known that since the date Of the
last compilation the number Of IDLE cars
I has again very considerably decreased.
! The production OF pig iron. that was los
20S tons IN January, was 1,07S. ~ tons n
! February; and Il is known. too. that this
has constantly enlarged through the pres
ent month
/
1 clines in both gross and net, but except
with certain companies they are even
now as great as they were in the year
800; and IL is beginning 20 be evident
/ that the railway managers have at last
/ obtained command over their operating
expenses
] It IS apparent that the efficiency OF Ia
Dor on the railways, and, indeed, IN
manufacturing establishments and ali
similar places. has immensely Increased OF
late, owing % the discharges OF men that
have taken place; and there are now not
! a few signs that, with the larger and
more prosperous railway companies ar
/ least, the much-vexed problem OF a re-
/ ductiOn OF railway pay schedules is be
ginning 10 resolve itself.
No Wage Cuts Expected.
/ It is not at all improbable now that no
reduction Of rates OF wages VIII be nee
! essary on these lines, but that the rail-
way companies viii be enabled to curtan
their expenses sufficiently by a reduction
Of hours OF labor and by means OF the
/ same practices that they have enforced
so rigidIy since the beginning OF the pres
ent year. Meanwhile, as regards general
! business. collections are better: and, al
/ though the buying by wholesalers and re-
tailers is still of the hand-to-mOuth order.
/ il is becoming more and more continuous,
owing 10 the universal conditions OF light
| stocks in consumers hands.
Ali fears as 10 the money market have,
Of course. long since vanished in the
/ presence or the enormous and sudden in
crease in the COuntTy's export trade bal
ance. and also in the easier monetary
/ conditions due to slackening business.
which prevail all over the world, and
which resulted last week IN the establish
ment OF a minimum discount rate OF the
/ Bank Of England at a lower level than
/ has been seen at this time Of the year
since 1906.
] Win Keep English Gold
This points to only one conclusion, and
that Is that our country viii keep within
its borders for an indefinite time 20 come
the s1s0,ooO,oeo Of gold that was brought
here from Europe in last years time OF
stress.
The deficit in the governments revenues
is increasing. but the government surplus
/ is so large that there Is not the slightest
/ possibility that any such difficulties will
/ arise later as those pertaining TO the
I endless chain of banK-nOte redemptiOns
which held the country in iron bands from
1898 to 1886. Standing IN the background.
too, in all consideration Of our financial
and business future. are ever the two i'm
menSe and overshadawing factors. first
the prosperity OF the farming population.
| untouched by, the recent financial panic.
and which is now OF permanent nature.
owing 10 the large market for farm prod
ucts. and. secondly. the fact that the cur