The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1908-03-30

New York. March 29-Affairs in the
stock market last week passed into a
phase a good deal more speculative and
hence good deal more dangerous than
that which has recently characterized
them.
There were broad and fundamental con-
siderations which stood out very plainly
six weeks ago justifying an advance in
market valuations, and these cOnsidera-
tons still exist in that there seems every
reason 70 believe that the face Of business
and finance in the country is set toward
better times
There IS reason in all things. however
and it can hardly be expected. and ought
10 be discouutenanced II 1t occurs, that
a rising movement in the market should
90 on indefinitely without recession, espe-
cially when II has come 10 be conducted
solely by professional operators. The
maintenance OF such conditions for a time
IS, Of course. in one sense wholly natural
When the stock market begins 10 rally
after a period Of great depression. the ad-
vance is contested hotly at first. and aft
erward stubbornly and doggedly by the
great majority Of the spectators who
were most active in the preceding decline.
The time comes finally when even these
men cover their contracts for the fall. and
plunge as vigorously on the buying side
Of the market as they did previously with
their sales.
Much Clique Manipulation.
There were many evidences that specu-
lative transactions of this sort figured
extensively in last weeks market. and
what was particularly manifest was the
amount Of clique manipulation that went
on. Many. and indeed most. Of the active
stocks were churned around in furious
way, but without establishing any notable
advance in price beyond the level touched
some time ago. And such a phenomenon.
when il occurs after a prolonged rise in
the market usually engenders the suspi-
cioa that liquidation is going on.
The rise that has occurred is Of a really
extraordinary character. Since the fourth
day of the present month there have been
only five days when prices on the stock
exchange have not advanced. the gain
extending IN this period 10 over points
in the standard issues. while the declines
on he few days in which these did hap
pen were rarely considerable. IL must
be admitted that this emphasizes the fact
that has been time and again adverted
10 IN this column. that stocks are scarce
IN Wall street so that the amount of
buying that IS necessary, or rather was
necessary. in order 10 force prices TO
higher level is lessened-
Must Take Their Profits.
For all this. II is an automatic principle
in every financial district in the would
that spectators who buy for advances
must from time 10 time take their profits,
and. further. that elementary conditions.
and not those Of mere speculation. are
the forces that ultimately control values
The news last week constituted a mix
the market was concerned. and on the
whole perhaps, resulted in slight shad-
ing OF that optimism which has previous
~ during the month been so warmly ex-
pressed in conservative financial circles. /
4 frmer Undert0ne prevailed in the cop
per metal market. and the warmer
weather Of the week was justly regarded
as being immensely helpful 10 general
business. The nearer advance Of spring
this year has caused farming prepars-
tons. az least in the West 10 be started
about a month earlier than they we're
last year and has been OF benefit 10 the
trade OF the country in every way.
Contrariwise. fears are arising. though
as yet but slight. that the splendid pros
pect Of the winter wheat crop 10 date IS
being MARRIED BY the absence OF rain in
the wheat-growing sections, and If this
lack Of moisture prevails for a while
longer IL may prove TO be a stock market
factor Of some seriousness.
Iron and Steel Trade Falls on.
It seems 20 be true that the iron and
steel business since the middle Of the
month has not been as good as it was in
the first two weeks in March. or even
relatively before that time. Orders for
new business are said 20 have fallen Of.
while stocks Of pig iron are accommodating
and are beginning TO weigh heavier upon
prices than they did. The railroads, too.
continue 10 lay off men. and their net
co not increase, while the cur
tailment IN the cotton goods trade, II
anything. enlarges.
The announcement Of the directors Of
the Union Pacific Railroad Company on
Thursday that a special meeting Of the
stockholders was soon TO be called for the
purpose Of concluding arrangements TO
place upon the now Unpledged property
OF the company a mortgage bond issue
whose amount, though unstated. is under
stood 10 be In the neighborhood Of So. e'G
900. was not pleasantly received by Wall
street proper, because a certain number
Of SDeCularOrs were eVOecffuV instead NJ