The Washington herald., 1908-07-20

.A ta- majority OF active STOCKS dealt ID
on the New York Stock Exchange were
not lerge n the past week. there was a
clearly defined tendency toward a higher
level and the trading developed all the
characteristics Of what Is known in Wall
street as a creeping bull market" The
issues which for a long time past held
practically a monopoly Of the trading be-
came less conspicuous. and number OF
others. notably United States Steel. be
came de idedly active at advancing prices.
and altogether there was a healthy broad
cning OF operations. which denoted that
the market was no longer the mere crsa-
ture II few powerful ciiques or groups
OF s2eculators.
Not the least Interesting OF important
OF the facts brought to light was that
comparatively little buying suficed TO
impart a considerable degree Of strength
90 issues widely distributed and Of very
large vlgule the satural inference from
which was that holders Of stocks are
not disposed TO part with them at present
prices. and that u the buying movement
continue 10 grow. it cannot be satisfied
without causing a substantial rise in quo
tatio-s- Tae probability Is that 50 far on
The present movement the public has not
bors-t stocks largely. but Las placed buy
ing orders to be executed in the event
of "a decline Of two or three points from
the. present level. is a matter Of which
every active commission house In Wan
street mas evidence on its own books
- Usually this is the first sign OF active
public participation ln the market and
il almost invariably happe=s. If prices re-
fuse 10 decline and instead show a dIsp5-
sition 20 advance. that the buying orders
which could not be fued at the quota
tions named are advanced TO prices at
which purchases can be made.
Bond Market Improves.
Another matter OF observation which
has given almost an equal amount OF sat
isfactiOn 10 those who have been seeking
for signs of a restoration OF confidence is
the Improvement in The bond market.
the demand for this class Of securities
having improved In a marked degree. with
the result that the total Gauy trarsac-
u0ns now approximate S40ja.11J par value,
a level but rarely reached in recent years
The unusual spectacle was witnessed or
successive DAY all through the week
either making a new high record or reach
ing the best record previously made. the
price al the end rising 20 s4s. or very
nearly double the lowest touched during
the panic last October. The rise was due
% the remarkable revival which has taken
place recently IN the steel industry. and
which gives every indication that the year
1913 viii be one OF as great activity as
has ever been experienced IN the trade.
The United states steel Corporation re-
ceived orders iE the first half Of July
somewhat i1 excess Of those for the cor
responding period Of last year. noJwith-
standing the fact that in the current
month little business has been secured
from railroads This statement Is vouch-
ed FOR or absolutely uainpeachabIe au-
tEority, and Il so surprising that had Il
come from almost any other source L
might We'll be doubted.
Roads Lack Securities.
Coming however. as Il did. from sources
than which there Is r0re higher. It must
De accepted without any qualification
whatever The reasons why the railroads
have not placed their usual complement
Of orders are pretty weu understood by
this time. not the least Of then being that
many roads which have the desire 70
make improvements are deferred from
doing so by their inability 70 obtain funds
on reasonable terms. because they have
not the kind 0f security 10 offer which
alone the investing public has hereto
fore been willing 10 accept
The return OF the government deposits
was not felt IN Wall street. nor was any
attention paid 20 the announcement Of an
engagement OF N.1g1cjJ for exoort 10
Europe, for The excellent reason that the
statement of the foreign commerce Of the
United States for the year ended June 50
made il pretty clear that Europe is in
deoted 10 this country and not this coua-
try 20 Europe A comparison Of the ex-
cess OF exports over imports for the year
shows the greatest gain in this respect
for any year in our history Exports
exceeded imports by S565. 900 as com
pared with Sfi6.o00G99 in the year preced-
ing, and S5lI 00l.oo1 for the year ended
June 80. 1906 This extraordinary excess
OF exports Of merchandise. combined with
the fact that foreign purchases Of our
securities have been heavy. leaves uracri-
ca!iy no room 70 doubt that nOtvith-
standing our imports Of gold al the time
Of the panic and subsequently. anv gold
shipped now from this country TO Europs
Is IN the nature Of an accommodation in
stead Of the settlement OF an obligation
Advance In Freight Rates.
The question OF an advance in freight
rates to overcome the relatively higher
cost OF operation against which the rail
roads have been conteuding for years
past has now assumed such in19ortan~e
that il has been taken Up by the presi-
dents Of the trunk lines. and While no
definite decision has been relched. there
is reason to believe that progress has
been made There are. of course. a great
many difficulties in the way Of the in
PRODUCTION Of new schedules. but these
are not unsurmountable. and while il
seems quite likely that the Southwest
viii lead the East in making a change
not many months are likely 70 eIapsa
until all the railroads of the country
give effect 10 "a higher scale Of charges
for freight transportation
There IS at present difference Of opin-
ion as 10 whether the present difficulty
could not better be met BY reduction in
the wages Of all classes CT railroad en-
ployes than by an advance in rates. and
It is, Of course, entirely possible that al
though most Of the roads announce their
determination TO reduce wages only as a
last resort. a final solution viii be found
in moderate increase Of Transportation
charges. gradually introduced. and a
small reduction III the wages Of labor.
now better paid than ever before There
have been instances recently where labor
has accepted wage reductions in a COM
mendabIe spirit Of couciIiation- and there
Is no reason TO doubt that the same would
he 1r-7= a. tn - s1r-o1 ---~v1z