The Washington times., 1908-12-27
Money Likely to Be Most I'm
portant Factor of the
Near Future.
BONDS FAVORED BY
INVESTING PUBLIC
Manipulation That Has Attended
Years Advance TO
Continue.


ket-lower prices or a continuation Of
the up-turn? Wall Street overgiven to
discOunung the future, would like TO
know. How Will the market leaders,
and especially Mr.. Hartman view the
new plans OF PreSident-eleCt Taft for
the further governing and looking after
the affairs of railroads and corpora
uOnS2 In some things. at least. the
incoming Executive has gone beyond
the most radical views Of the President
himself
With the reserves in the banks Of
this city going down at a rapid pace
until there IS but fraction OF IS per
cent on hand and with the new State
law requiring trust companies to carry
larger reserves making ii necessary TO
lie up $i5.O00,0GO from circulation, how
VIII the money market be after the
advent OF the new year?
Dividend Distribution
with over S2OO.OoOOOO to be paid out
within the week to investors, much Of
it out Of the city, there is much inter
est in the probable amount that will
he reinvested and that viii flow back
into our banks.
Last week the market touched it's
lowest point since election. At that
time, Union Pacific. AtchiSon, St Paul.
and a number Of other stocks were
back to within a fraction Of the prices
current when the election was decided
last November. AmalgaIlated Copper
WAS as DOlnLE OEiOW LlE lnGu-TudTkELI
price. while Shelter wa5 five points
below. Thus in a little more than a
week the after-election rise on many
Of the leaders was lost.
This recalls the fact that in a burst
Of recOvery-the enthusiasm that blew
up the rise 70 July, and blew up itself
IN the same month, caused q reaction
Of almost the entire recovery up to that
time. From then on 20 the election, big
gains were made on the probability or
= Republican success and the passing
of Roosevelt Then came the after
election rise and the setback that Gull
minated on the opening of last week.
Recovery Follows.
Since then there has been another
recovery. the last few days showing a
gain Of 90 10 Oh points. with room
traders and the big financial inter
CSts the chief buyers.
These recoveries have been made on
the covering Of a larger short interest
than Wall Street has known for many
months Il was brought about partially
by the calling Of loans. partially by the
setback that business has received
through the premature tariff hearings,
months in advance or possible action
and largely through the over-bouSht
market.
Low-Priced Stock Active.
4 surprising feature Of the market
that promises to be continued during the
ll'.eN lew hfEnSr ~ AAAg HIAAN4AN III II"
priced stocks that have never been
given much credit as dividend payers.
The Could stocks have been more prorni-
Eent than ever before since the founder
of the house Of the original Gould, die
lated their fortunes The UiSInJergratlOn
Of the Gould holdings is Sill Indicated
10y certain market action. Wabash. I
Denver. Missouri, Kansas and Texas
and Missouri Pacific have been &C
tive, but the latter has not had
as much activity or strength as tie min
or roads. The passing Of Wabash to
another system is limited, so, too, reports
predict the passing Of The other roads |
except Missouri Pacific.
James =. Hill scored a coup when he /
CinChcd Colorado Southern, giving ST |
iaul serious jolt, or rather saving /
himself from one, had the property !
passed 70 its natural shOuld-be owner, !
1t. Paul.
Hill's Move.
The manner in which Mr. Hill has 4
protected his properties has been the /
cause Of removing both, Northern Paci- /
&c and Great Northern, 10 a large ex- /
stocks.
Another indication that Wall Street /
has taken for an encouraging sign has
been the exit Of President Newman. Of ]
the New York Central line with a (
rapid advance in price and "a strong UNI /
utrtope- You can not make Wall Street |
believe that Mr. Hartman will not be |
"a potential factor in the chiefest Van /
GerbIlt line.
one of the features OF an after-a-panicl
has been plethora Of easy money. 1t !
has characterized nearly all uanicS OF I
Late years The taking off the brakes 10y
bankers, the r-stoTaUOu Of confidence.
and. in the case OF the last panic. the
emergency currency law, all aided i'm
making money easy, while the depressed /
condition of business. making II I'M
m |
leans TO commerce and manufactures
also helped materially. The boom has
been made possible Dy easy money
Just at present. II is again admitted
what thev Should he. Perhaps the WAYS
and Means Committee of the House Of
Representatives may formulate a tariff
bill that viii help general business. nut
II viii be months before it can be enact
Prosperity Well Founded.
The real prosperity Of the country.
however, is founded on the producing
capacity of American farms, pIanta-
tons etc The harvest Of 1907 will force
the revival in business-this ana the
fact that there must be millions spent
for equipment, for rails. for food and
clothing and everything we consume.
The public, or that portion Of { that |
was prepared and waiting for the manic
that tnev might pick uD bargains in
stocks. have long since taken their
profits and quit. that IS. the great ma
Jor1ty have They have been waiting
for the belated reaction. and DerhapS
some public buying attended the break
during the previous week and the OMEN
ing day Of last week But as a rrlle
the investing public BUYS ONLY bonds |
bonds. and then more bonds. The re-
SUIT Is "A recOrd-breakinE bond market,
with rapid and good advances.
Professionals Chary.
The professional element. room trad
ers, and spectators. generally are still !
chary- They buy just as they have for ,
months. following the leader, and tbey, /
turn with speed, and are rarely caught
in any opening rise or closing 'hn0m J
1t is within the prOba utilities that the
market viii remain nearly at current I
prices during the current week. They ;
may rise and fall, probably thew will :
but there will not be much of an ex- /
pansiOu to the movement one way or /
the other until after the advent of The I
new year.
So long as money continues easv the ,
"oninulation Of the market may con- t