Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-02-16
HEARDON CHANGE

The situation in the local stock market
10 beginning to give evidence Of being
somewhat more interesting than has been
the case for some weeks past. While
the panic In the money market has
passed and the recovery here has been
quite as rapid as 1t has been in other
places and in the same degree. though it
was not quite as acute here, the rebound
has perhaps been greater for the same
space of time than in any other city.
At the same time, while the pressure Of
the strain Of the uncertainty Of those
days is no longer here and the banks
feel easy In regard to their money re-
serves. which are ample, and there ID no
longer the apprehension Of something
about to happen. no one knowing exactly
what. still there Is no market for securi-
ties and people are not buying to any
extent.
In the early days Of the lessening OF
the panicky conditions q buying move
ment set in mainly confined to fractional
lots of securities, and this was a feature
both Of the market here and elsewhere.
This was regarded, and truly too. as in
vestment buying. as at that time there
were no funds for collateral loans. This
kind Of buying has not continued to be
a feature of the market here and its
kind. 1t Is probable that merely specu-
lative buying does not find much en-
couragement from those who have money
to loan. and that may account in some
measure for current conditions.
At the present time and for some days
past the level Of prices for the leading
securities on tho list or at least the most
active has been in the opinion OF judges
Of the market very low. SO that it might
be said that stocks are to be had at
cheap rates. But even this consideration.
which is usually powerful with people
who have any money to invest, has not
been sufficient to impart any great de-
gree OF activity to the market:
To a limited extent the fractional buy
ing has kept up, but it's volume has not
been such as to have any appreciable i'm
mediate influence. There is no question
that such buying will have an effect on
for 1t is gradually placing securities in
the hands of permanent investors, for
that Is what the bulk Of the small buying
means.
According to the Judgment Of men who
are in position to have thorough
knowledge of local conditions in these
particulars something Of the sort is ak
actly what was needed and Is needed
here. There are instances named OF lines
Of securities which have been too loosely
held. and on that account any pressure or
change in the market had an unsettling
effect.
Investment buying, according to this
view, gives greater stability. Exactly
why such movement has not gone on
expanding IL not clearly explained. al
though 1t 10 said the market here generally
receives a check during the session Of
Congress in view Of the possible material
that would be afforded by a buoyant con-
dition to members who for ono reason or
another have the habit Of makng
speeches and proposing legislation bear
Ing on the public utility corporations
Of this city.
II this theory IL correct then It may be
expected there will be a revival OF busi.
ness when Congress gets through with
the consideration of such subjects. There
Is another explanation given for the lack
Of buying and that is that people have not
the money or the confidence as yet which
Is necessary to constitute q good market.
and in addition while tho banks have an
abundance Of funds, still they are not
fashion.
The above statements are looked upon
as accounting for the market here in gem
eral. There are. Of course. in the case Of
each security special conditions which
apply only to such securities and which
no doubt have an influence upon their
course in the market.