The Washington times., 1909-05-30
FUTURE Of STOCKS
IS VERY UNCERTAIN
Rally of Last Week Checked
Reaction, But Did Not
Affect Rails.
LITTLE STEEL THE
MARKETS FEATURE
Situation Very Interesting, But
Manipulation Is DiScounting
All Favorable Probabilities.

NEW 1Ohhs NAY CIV al oAANCt
and the entire speculative fraternity, as
we'll as that large and influential in
vestment contingent is more than ordi-
narily interested in the probable course
Of the market during the next few days
There are few in either the speculative
or investment ranks that care TO hazaro
much Of anything but guess as 10
the probable course Of values put II IS
probably a fact that the majority or
them would favor the theory that prices
are to creep higher, though Just Why
is a question. This reasoning would De
based on the action OF the list on the
closing business day of last week, when
prices We're marked up Sharply undef
the leadership of Steel common More
people are asking what coming III
Steel? This common stock, selling down
10 :, and once again rising into the
SOS, 10 drop TO al Is now on the nigh
at 81, while the preferred Is above 10
And this but two or three months dis
Tant from great representation the
cutting and slashine prices, from
the "Wide-open market, and but day
or two back of the present is the threat
Of the great independent combination
thar was TO play mob with the Steel
Corporation.
Steel Favorite With Public.
The Steel Corporation was a prime
favorite with the public while it was
being launched; afterward and time
and again, they bought it. then it be
came forsaken with the preferred at
% and the common at S-but all the
dividend, and went forward. Then the
public bought II again, but il is not the
public today, not the public in the COM
mon stock, even though the preferred
is being locked away. It is possible that
something up but what? The Street
may know later on.
Bulls talk Of the ending of the policy
o. paying for improvements out OF
earnings and hint at better dividends.
Rally On Wave of Weakness.
The change in the temper of the mar
ket came right on top OF a wave OF
weakness that promised 10 give the Est
the Iong-expected reaction. indeed with
Its recovery Reading $ . points lower
than week ago, and the PaCificS Hills
and NandeFbllts, with the exception OF
Northwestern. have not made any ad-
Vances worthy of mention. 1t has been
a steel furry. q little Steel-SlOss-Shef-
neld-Repuolic Iron and steel boom, while
the other metal stocks, Copper and
Smelling. have done well on the bust
ness revival in their special lines Lead
rose last week ~ points, Republic pre-
ferreds points, and good advances were
made in industriaIs generally. Wells
Fargo made the sensational gain Of %
points.
Rail changes were scarcely worthy of
mention other than as checking the
trend toward lower values in the first
two or three days Of the week.
Loans 1881 $4,000.
Money is stin easy, although London
has been called upon TO aid in financ-
ing wall Street. The loan item of the
associated banks still stands near the
top, $1,sSl Ss6,oo1, although the reserve
surplus has increased from sT62T, 600 May
TO &2f,9S5,e0O today. The greater part
OF these ,oans IS tied up in stocks.
The public is out Of the stock market
- , Z r.-- a q for Ia %
three yeas. There IS no indication that
Il Is coming IN and relieve the big fl
nsncial interests that are carrying
stocks or then burden. These same in
terests believe or profess 10 believe that
Immediately the tariff law Is enacted
the public viii come running for stocks
the public has been out OF the mar
ket so long that there is nothing IN
the movement CT the last Jew years TO
indicate probable action
1T used 20 be that q sustained bull
movement was all that was necessary
10 tempt the men with 2 few hundreds
or thousands OF tens Of thousands 10
thrOng brokers' offices, and buy hum
dred 70 five hundred shares OF stock or
liberal margin. There have been times
When the public have actually taken
the market away from the professionals,
and run away with it-but not lately.
As usual thing tbs public vas prop
eTly and satisfactorily clipped Of is
long green. Il may be that q continue 70
ton of the sustained bull movement
may yet bring IN the public. bus the
chances are decidedly aga insl it. The
semi professionals. room traders. etc,
have abont gone their limit IN following
the list upward they have been prop
criy MIXED, and viii go slow bIU may bc
expected TO take myers or 70 fellow fur
sAGr with stop loss orders attached.
Reaction Hope of Street.
Il is reaction that is the nope OF
the Street. 50 far as the public is con-
cerred. 4 reaction may bring many
buvjue orders into the market and il
Eood-siZed reaction would stimulate The
bears into activity-Jhat bear contingent
that has made some money now and
then Tor the last few years, and is al
WAYS looking for the unexpected TO
make things 20 their way. ana short
interest Is second 10 public following
81 can be made 10 cover and pay interest
Ia the clique that TO-DAY holds most O.
the shares of the ieadins railroad COM
paH.es-
A Cautionary Signal.
such q conservative reviewer as the
rev York Evening Post has = word Of
caution TO the leaders on the volume OF
borrowed money that they are today
using Us che Street
..J-nIess the signs Of the moment are
deceUtiYe the stock exchange sltuatio. .
has reached stage where powerful
fnanciers need 10 be warned against
themselves. 4 dozen years ago. mos
neople would have regsf led the notion
of such a warning. OF OF the need OF Il
as something quite superfiuous. Fut the
American market has lived tnroug q
good many experiences since then, ana
one thing Which II has learned is, tnat
high finance is itself subject 10 strange
illusions regarding a financial situation
that IL is caDable OF rashness in the use
of capital such As would be inconcelNa %
bic I'm q foreign market. and that the
consequence arc most destructive
Few Manipulated Leaders.
The Union Pacific. Southern Pacific,
Reading. Gouids. and one or two other
stocks lave been the leaders in the MS
nipuiafion. There are many stocks on
ihe list that have not been manipulated
20 amy extent TIE Hills some OF the
Southwestern and Southern stocks and
many ol the industrial group have not
been inflated 20 any extent
But the manipulated stocks have dis
counted good crops returning prosper
IT'S. tariff enactment. etc. and Yet IL is
EASY 10 conceive that thcv NAV %
hiEher-h everything comes out as
counted On.