The Washington times., 1909-05-02
NEW YORK STOCKS
ARE HOLDING WELL
Higher Levels Not Likely
Until Tariff Matter Is
Out of Way.
EASY MONEY BASIS
OF PRESENT 1UNE
Industrial Prosperity Helps Situa-
tion-Foreign Conditions Con-
sidered Weekly Tables.

NEW YORK. MAY 2.-It is scarcely
within a probability that there viii be
any further upward movement in stocks
curing the coming week, nor is there
much prospect OF i giving way material
ly from the present range. With ex-
ceptions of action in certain stocks this
has been the trend for weeks, a back
ing and filing market The causes that
have held it at its present high levels
during the pas; te- months still exist.
That we are TO have still higher levels
in the future is very probable, and these
will come when the present uncertainty
regarding the crops mas been dissipated
come with Mag and June; wnen tariff
bill shall have passed Congress and be-
come a law, ard when the long de-
layed decision OF the Supreme Court ia
connection with the commodity clause
shall he rendered, although, Of course,
there is no certainty as 10 the nature
OF this decision, but whatever way it
may be it will be well 10 have it over
ana out of the way.
Rumors continue of a probable ad-
verse decision tomorrow, but, as a mat
ter OF fact, all rumors OF this character
have no bases for existence. Such a
story was circulated yesterday, and the
effects were Immediately seen on the
tape in the execution Of large buying
orders, rather than selling. Traders
| look tor decision before the court
| takes its recess, although in high official
railroad circles this expectation is not
shared in. There is no definite. infor-
nation as TO wneT the court viii pass
upon this interesting question.
Easy Money the Basis.
Stocks have been maintained around
present high prices without much diff
ficuIty. Large financial interests nave
| tai. and stocks have benefited there BY.
The inference is plain. With time
money loaning al per cert, and even
/ under. and with stocks paving pa - 6
and per cent. the opportunities for
/ using borrowed cash were too great to
| overlook. 1t is understood that large
financial Institutions also availed them
selves Of dividends on railroad stocks s
q means OF securing some investment on
| their enormous cash holdings, made idle
\ by the decreased demand frcm ma lu-
featuring and general business interests.
That this investment, however tenn
porary IN character, has been a great
/ assistance TO the big interests, such as
Hartman, Morgan, and others, in hold
/ ing stocks cannot be questioned. That
these purchase will be held for some
/ time goes without saying. but they prob
/ ably would BE- amcng the first TO be
| thrown with any untoward develop
/ ments, and for this reason they are 10
| a greater or le,ss extent menace, but
| the sky is cleap at this time. and there
seems 70 be no reason TO fear the IN
| expected. Moreover, the price of money
might rise sharply. and make these in
Vestment6 unprof1tab BILE, yet present
/ prices are not excessive, considering
their returns TO investors, and II busi-
ness improves the returns 10 the roads
] will guarantee the continuation of these
/ payments.
Foreign Situation Interesting
The foreign situation has developed
many interesting features during the
last few days. The Turkish revolution
is closely watched. the building OF
Dreadnovghts by Austria Germany.
| and England, ..nd of the new navy Dy
Russia, attracts attention and COM
ment, but more than all else, so far as
London Is concerned, the new budget of
the British government is exciting Sc
we're criticism, and may eventually re-
( suit IN q benefit 10 the United States.
! The Increase in stamp duties on trad
ing in American securities is so radical
! that theS are likely 20 hamper London
trading seriously. moreover other sIamp
taxes are likely to be q. hindrance 10
the great financial interests of this city.
and America will probably have TO use
I more and more of her own finances in
| the ma tier of fiotations.
Industrial Improvement.
The Industrial situation is, fortunately,
I showing great improvement. The show
/ ing OF the United States Steel Corpora
I ton during ths past week was a sur
I prise. the first quarter Of 1909 showing
dI ledeL ezsyyVsuVU nlOTb net earnings tlan
( the highest estimate that had been
! made, while the advance on steel and
iron products was helpful. On all sides
| reports indicate awakening industry,
I from the overtime Of the New England
| textile mills on through the various
lines Of manufacturing with an average
minimum employment OF perhaps 50 per
cent or capa city
There were about as many declines as
| advances scored during the last six
| days. Both the active leaders of the
market, Union Pacific and Reading,
! made slight fractional changes for the
. better. Erie showed good strength,
| Canadian Pacific moved up 51k points.
R.puolio Iron end Steel preferred
| pbints, end Colorado Southsrn from 2
| to 2h. number OF minor stocks,
| Southwestern shares, and New York
| fractions showed gains OF / 70 2 points,
] while Western Union rose points.
/ These were the principle changes on the
! bull side OF the market.
Delaware, Lackawanna and Western
| sold or 10 points. Chicago, Burlington
I and Quincy points lower than the
| last sale, Big Four preferred fell OF
| points, Nashville and Chattanooga los,
points. These we're the chief declines
| or the week.
As a general rule the leading stocks
| showed out little difference from the
! closing OF week ago.
!