The Washington herald., 1908-04-27
MARKET PRICES HOLD
Stubborn Struggle Displayed
DiScOurages Bulls.
STREET IS BARE OF STOCKS
Optimism Greatly Increases over
Ease with Which Pennsylvania
Railroad Raises Huge sum of
MOney-C. & o. Bonds Also Sell
Readiiy-Banks to BE Called Upon.

New York, April 2s.-There were a good
many deveiopnents last week, most Of
them, it may be- OF tentative, and to q
greater or less extent merely suggestive
character, which combined TO produce a
better feeling in the financial district,
In the first place, the minds of bankers
as well as Of people whose interest il
financial matters is Of a more speculative
sort. began to be deeply impressed with
the stubborn steadiness displayed by the
stock market during the present month
In this period, although most OF the news
bearing upon the security market was
at least not such as to encourage buying
OF stocks, prices Of securities held with
extraordinary frmness. giving rise to the
general comment that the market was
displaying surprising strength under the
circumstances.
Buyers Of stocks seemed TO be few and
far between, and the constant tendency
Of the market was toward duIlness. new
low records for the year in point of the
volume Of transactions being almost
reached on several occasions. But sellers
Of stocks were equally scarce, and the
same phenomenon was presented that has
been great many times since last year S
panic, Of the development Of inertness in
the market rather than activity when
prices declined. There was no such chip
ping away Of values as oftentmes occurs
in a dull market. when the underlying
truth is that a t)pheavy speculation has
reached its limits and that the market is
overhung by liquidation.
Prices Remain ImpassIve.
The most notable instance Of this was
the impassiveness displayed BY prices in
the presence of the Erie difficulty. Here
was a case where the bankruptcy Of one
Of the best-knOwn railway systems in the
United States was threatened, and was,
indeed. considered inevitable by those who
had reason TO be best informed concern
ing the immediate prospects. Yet nobody
was disturbed, and only small recessions
were made in general market valuations.
Real liquidation was not provoked at all
by the incident and spectators for the
fall showed that they were instinctively
aware that the market position had be-
come such that the matter could not be
used as a club with which TO smash
values
1t was plain that business conditions
since the middle of March had not been
so brisk as they were earlier in the year
and that trade Was. in fact. tending to-
ward fiatness. Reports from the iron
and steel centers were not so good, the
political outlook was, if anything, more
confused, there were indications OF i'm
pending gold exports, and the monetary
outlook for the crops was less bright,
Yet ia spite Of this, there was only a
trifiing drop IN the price OF stocks while
the market for bonds Enthusiastically har-
Gened. There was only enc inference to
be drawn from such a state of affairs.
This was that the market had become to
"a large extent bare Of stocks TO use
an expressive term Of Wall street phrase
olOgy. and that also the recuperative
forces in the country had already made
such headway that money was beginning
once more 10 flow back into investment
channels.
Optimism Greatly Increased.
During the week general indications Of
this kind became more pronounced. Op-
timism was particularly increased natu-
rally by the immense success that at
tended the Pennsylvania Railroad Com
pany's bond sale.
It is true that the bonds offered by the
Pennsylvania were Of a gilt edged char
acter not often Witnessed. the securi-
ties comprising what was. with the ex-
oeption Of s909s9090 Of prior liens. first
mortgage on the main line or the Penn
sylvania system The fact. however.
that one railroad company in the United
States could once more borrow a large
sum Of money at rates not greatly above
the 1 per cent level, and that applications
for this loan were not alone sufficient, but
exceedingly numerous, was commonly
and logically taken as an indication
that q radical change for the better had
in lthe entire financial situation;
but the main and substantial considera-
ton in the matter was, of course. that
if it could be regarded as certain that
within a reasonably short period the
railroads Of the country would once more
be enabled 10 spend money with a fair
amount of freedom in Improvement and
extension work. the reports of the state
OF, general business over the country,
however uninspiring these might be at
pI esent, would in a short time begin to
be c0lored differently.
c. a o. Bonds Sell Quickly.
The quick sale Of the Chesapeake and
Ohio bonds and notes, of the Wabash
mortgage issue. and OF the new Norfolk
and Western notes were all instances in
he same line, and further welcome sign
Vas the disappearance from the market
1f the railway short-time notes which,
lp to two or three weeks ago were
pressing heavily for sale. As it stands
low, obligations Of this kind-that is TO
say, of railroads whose solvency can be
leld TO be reasonably established-cannot
be bought except upon terms which do
lot yield more. and in some cases yield
wen less, return to the buyer than can
De obtained from loans Of time money
secured by first-class stock exchange col |
ateral fsr the same period.
But 1t may be questioned whether a
more hopeful feeling was not produced |
han by any of these occurrences by the |
nlarged demand witnessed for CONNER
dal paper, and by a rather belated recog-
lifipn of he -,-s~,