The Washington herald., 1909-05-24
NEWS TOO BUOYANT
Traders Tired of Optimistic
Market Report.
BELIEVED SLUMP IMMINENT
Upward Movement OF Prices ContIn-
ucs, but the Impression Gains
Strength in Many. Quarters that
Something Is Bound 10 Happen.
Boom in the Steel Trade.

Boom in the Steel Trade.
New York. Nay 8.-Throughout the
last week one sentiment began 10 make
its influence percepdbly felt in Wall
street that the stock market was suffer
Ing 70 greater or less extent from q
surfeit Of good news. The speculative
traders. OF many Of them. declared that
they were tired Of hearing day in and
day OUT reports Of the coUntry's improv-
ing BUSINESS and that tidings Of this sort
had reached the point where they no
longer stimulated buying OF stocks
The high prices for stocks were dwelt
upon, and Il was coutended that the
market had continued strong for several
weeks and that upon the mere theory
OF ordinary market action and reaction
g considerable recession IN value was
probable or at any rate ought 20 Oc-
cu<- 4 certain class OF operators were
impressed with the argument that a.
though the financial skies were now clear
something was bound 10 turn up sooner
or later 70 disturb their serenity; while
others stu harped upon the fact that
the period OF the year was one IN which
the stock market not infrequenJly hesi-
tates-
Estimates of Crops
No one denies that the present IS an
important staple, IS as yet barely planted.
crops. The corn crop. the country's most
important staple, IS as yet barely planted
even aIc1o1gh this planting has taken
place under exceedingly favorable con
ditiOns; the acreage therefore Is known
= 10 be heavily increased ard the promise
as K stands for the largest crop on
record Il IS obviously too early Yet for
any one 70 say that our harvest this
years VIII surely be satisfactory. As q
result Of all these considerations and
various others Of q vague and indefinite
nature large amount of stocks was
Hquidated IN the market in the time %
which reference has been made. ard
this selling movement continued through
the early part OF last week
The upward movement IN the price OF
gram has continued. but this rise has
been exclusively caused by renewed evl-
dences Of the reduced quantity Of last
years supplies OF wheat and by the ex-
wheat crop ii the present year Reports
are becoming definite from England.
France. austria. and pretty nearly al
the European countries that this year
the wheat harvest there viii be decidedly
smaller yhau i was IN 1875, and suCl
Q development IS the reverse OF a bear
argument" either in cur own sTain OF Sc
cCrity market.
Boom In steel Trade
It IS also indisputabIe that distinct
reason for the strength Of the stock mar
ket latterly has been the cumulated proof
Of a development CT the couatry's iron
and steel business that IS exceeding al
previous anticipatiOrs thereof in the high
er circles n the steel trade The cut in
the list price OF wire products made only
2 short tine s!nce-this being the only
branch OF the trade with the exception
Of steel rails. in which a large readjust-
ment Of prices has not been made
brought ont such a volume OF new busi-
ness that All the wire companies were
delUged with rev orders, and were soon
forced 20 restore prices 20 the former
level
IN ether lines the managements Of one
great, mill after another found that they
had booked orders sufficient 10 carry
them al pretty nearly full capacity
throughout the present year. a.: this
coming, toe. al the season OF the year
when ordinarily the demand for iron and
steel products slackens. The public sign
OF r-bat was going on was afforded il
the action taken By a large number OF
the independent steel producers IN The
Pittsbu-g district restoring wages OF
employees on June I 20 the old figures
from which they were reduced a few
months ago. and II viii not be long under
such circumstances for Wall street 70
conclude that the time was yet not al
hand when something might Be expected
70 turn up affecting unfav0rably The
country's bushes.
Calculations Wrong.
There IS very little doubt that at least
certain large SPECTATORS made UP their
minds that they had miscalculated things
and that the best thing for them 20 do
was 10 reinsate themselves in their hold
irgs OF United States Steel and other
standard shares with which they had
parted. Throughout the week the steeI
shares we're plainly the stock marke,
leaders.
The greater activity In iron and stee
IS also accompanied by q larger con-
sumption OF copper. and it is estimated
with much assurance that the rep0r-
OF copper stocks On hand by the leading
producers 10 be issued next month VII
show a very considerable decrease. 4
decrease+Has. indeed, anticipated las
month, and a reduction in stocks DID
actually occur through the large guam
tity OF copper placed On the Lake Su
pertor docks and sold for delivery. bu
which did not pass out Of stock until i
vas shipped On the opening OF the GTea
Lakes navigation, OF Nay 5
The best indication OF the course o1
events in the copper trade is the actor
OF the ultra-cOnseTvative Calumet anC
HacIa management in increasing th'
Quarterly dividend rate from S 70 g {
share. Neither does anything occur L
blur the record Of increasing earning:
made BY the railroad companies Largt
additions 10 last years gross receipt!
continue TO be reported each week by tht
eountry's leading transportation lines
and last week two Increases IL railway
dividend rates were announced, these be
ing substantially the first events OF n,
kind since the 1867 panic The Chesa
peake and OhiO's annual dividend va.
raised TO Per cent. and Atlantic Coas
Line stock was put back 70 S Per cent
The action taken By the latter company
eriphasizes the character Of railway his
.orv since the depression OF the yea
before last.