The Washington herald., 1908-05-25

was unquestionably increased, and was
probably from rs 20 so per cent greater
in the majority OF instances than it was
a month or six weeks before.
Week Shows IrresuIarity.
Taking the week as whole. the course
OF the market itself was a good deal
more irregular than II had been pre-
viously The violent advance came to an
end on Monday. and the market de-
clined rather sharply in the two days im-
mediately following. 1t strengthened
again later on, only 10 fall again, ami
ended the week in a rather confused and
uncertain way Evidently those having
affairs In charge made UP their minds,
as they naturally might have done, that 1t
was not a wise thing TO keep on pushing
quotations up in such startling way.
since this might develop fear that o break
in prices when IL did come would be
very severe.
There was. too, a logical desire on the
part of those who had accumulated such
an enormous quantity Of stock to dis
pose of at least some portion Of Il; and
1t was desirable 10 make a test for purely
general reasons OF the markets absorbing
power. so that calculation might be made
as 10 the real measure of public support
that the upward movement had excited,
In the view OF most people who gave the
matter their concern the results OF the
application Of these tests were not very
satisfactory. 1t appeared to be the case
that any large marketing Of real" stock
would not uncover a great amount Of buy
ing orders on the part of either investors
or spectators, and that II such a move
ment were persisted In the chances were
that the market would decline as rapidly
as II rose.
may Long Continue strong.
Now II deserves to be said that the
mere fact that the present stock market
is Of the artificial and made to order
character that has been described, does
not by any means warrant the assump-
tion that IL may not continue It's strength
for an indefinite period. that it may not
be the genuine precursor Of period OF
distinct Improvement in business. and that
the small number OF rich men who have
bought stocks in such volume for purely
speculative purposes in the last few weeks
may not be able 10 so dispose OF them as
TO make their coup successful.
II stands out continually In the present
that the quantity OF stock in
Wall street is relatively scarce, very
much scarcer than has been popularly
supposed. The removal Of stocks from the
speculative centers by the purchases OF
Investors made all through last years de-
cline went on in an unprecedented way.
and this is the real reason for the phe-
nomenon which has recently excited so
much curiosity and wonderment in many
pfr ha faF Of ha a
vanclng movement In prices to be over
borne by liquidation at the higher levels
OF values, which were day by day and
week by week successfully reached.
Manage 10 Hold High Plane.
1t Is also the reason why certain stocks
which cover property whose business Is |
greatly depressed and which must prob
ably remain depressed for a much longer
period manage 10 hold themselves at a
high plane OF price. Anal
gamated Copper stock. for instance. at a
quotation OF SCI a share and paying only
2 per cent annual dividend. seems ex-
tremely high, especially as it is generally
considered very doubtful II even this
small dividend distribution is earned. The
same observation may be made or many
other OF the so-called metal" securities, /
but the underlying element here is that
these stocks have been so taken up for
investment. wisely or unwisely. as the
case may be. that they are not pressed
for safe in the market with the same IA
cility that they once were.
Again, the present cheapness Of money
and the resultant complacent attitude as
sumed by the great money lending instl-
tutions OF Wall street toward borrowers
on stock exchange collateral obviously
renders IL not an extremely difficult mat
ter TO hold" the market while stocks are
scarce and liquidation stands aloof, and
the force OF these helps is augmented by
the rosy prospect for the crops and by
what seems 20 De a more cheerful gen
eral feeling regarding the future market
influence Of political developments
Signs of Picking Up.
Further. there have been signs In the
last fortnight OF some real picking up in
and mercantile business. II
may be urged that the advance In the
stock market has far outrun any indica-
tons OF business Improvement that can
be adduced. Bank clearings over the
country show tendency 10 increase. Or
ders for pig iron have been placed. at
least in various Western cities. In a
rather large way. The dry goods trade
appears TO be in a curious state. improv-
ing tendencies In some sections being or |
set by greater slowing down in other
directions; and although copper metal is
selling at little higher price than II was
a fortnight ago. the change is so slight |
as to be almost inconsequental. and the
home consumption OF copper does not
seem 10 have materially increased.
The most definite Of these indications
has been the betterment Of the money |
market. A demand for investment securi- |
ties is admittedly In progress. and has |
been in progress for some time. and this !
has allowed a great many bond houses |
and the like 20 clear their shelves of un-
sold goods and has Obiously facilitated
the bringing out Of many new security
issues. In not few OF the successes" |
IN this liue, however, that have attracted
attention recently the bid price for the |
loans extended was high. good deal
higher than is popIlarly known: and il is |
that the demand for bonds has |
not yet become such as to allow a ready |
sale Of any bur first-class securities.
summarizing all these conditions II /
does not lie in the mouth OF any one to /
say that the great wager that has been |
made In Wall street as TO the more or /
less near approach Of good times must /
result In loss.
RECALLED TO CAPITAL