The Washington herald., 1908-03-22
RISING PRICES HOLD
New Records Made in Some
Instances Oh Change.
THE CLOSE SHOWS GOOD GAINS
Strength Largely Due TO Buying
Back OF Stocks Sold speeuIativeIy
for the DecIine-Rank and File of
Spectators Badly MisjudGe Market
COnditiOns-steeI I'm Demand.

New York. March 21-There was but one
feature in the stock market to-day. and
that was the steady continuation of the
rising tendency.
Prices advanced % the full average
high Level of the current movement
touched at the beginning of the week.
these figures being also the highest OF
the year; and in some instances new high
records for the year were established.
The market rose quietly but steadily
throughout the morning. falling a little
At the close under the usual profit taking.
but stlll leaving quotations at considerable
gains.
Possibly the strength to-day was due
largely 10 buying back of stocks sold
speculatively for the decline In the middle
Of the week or upon the presumption that
values would react more than they did
The rank and file OF spectators have in
general badly misjudged the market in
the last few weeks. that is 10 say, they
have undereStimated its strength. Looked
for recessions after advances have either
not occurred at all or have been but
slight. and even those who have indulged
IN operations for the rise have frequently
sold their stocks. only 10 buy them back
again at a higher range.
Buying for Investment.
The substantial factors in the market
continued to be the scarcity OF stocks
owing 10 the heavy purchase for invest
ment made during last years panic. the
existence of "A large and stubborn short
interest and improving conditions. not in
the world OF business, but IN politics.
To-day. the buying power in the market
was distinctly increased by the consid-
Grafton given over night TO the annual re-
port of tie United States Steel corporation
published yesterday afternoon.
The report disclosed a great surplus and
enormous expenditures Of Improvement
and additions OF new property made on
urely out Of earnings. and these facts
coupled with the magnificent reputation
which the corporation now enjoys for
sagacity and conservatism of manage
ment. leave IL beyond all reasonable per-
adventure that the continuance of the
present dividend distribution on the cor
poration's common shares is secure. even
II a longer period of business depression
awaits the country than is now common
ly anticipated.
Renewed Buying in Steel.
The renewed buying OF United states
Steel common shares to-day was. there
fore, but natural, as was also that Of the
United States Steel sinking fund bonds.
A matter that is widely discussed in
financial circles at the moment is the
policy adopted by the steel corporation
in declining 10 teduce prices OF manufac-
tured products. There are those who ad-
nit that this policy should be pursued
while BUSINESS conditions remain such
as 10 make il improbable that cuts in
prices would bring in new purchasing
orders; but who counted. on the other
hand, that when these conditions change
fer the better, the corporation should at
that time endeayor 10 stimulate con
sumption by lowering its quotations
Those who argue in this way may for
get the fundamental idea which prevailed
in the formation OF the United States
Steel Corporation ard whose value and
wisdom has been justified by time. II
was 10 take the steel trade out OF the
whirl Of rising and falling prices.