The Washington herald., 1909-04-19
GAIN In FEW STOCKS
Average Range of Prices Is
Practically Stationary.
REACTION IS A NATURAL ONE
Sensible Men Realize that Market
Cannot Always BE Gaining, and
Receding Movement Is Bound to
OccUr-Bank Clearings and Rail-
road Earnings Are Favorable.

Occur-Bank Clearings and Rail-
road Earnings Are Favorable.
New York. April I7.-That fairly large
class Of people in Wall street whose only
idea OF the stock market Is that prices
should always advance ara by whom a
two point reaction IN values Is regarded
as serious matter. were processing
themselves last week as considerably dis
appointed over the action OF the market
during the last fortnight In this period
the average range Of prices has advanced
hardly at all. although maintaining itself
at about the high level previously reached.
Striking gains We're made in a number OF
( stocks, which as a rule We're not those
commonly included among the standard
Issues, even II new high records for an
eighteen months period were stiu made
by some OF the prominent shares. There
was, however, cribbling liquidation IN GER
tain important stocks, notably Union Pa
emo common, and this gave 10 the mar
ket more or less hesitating appearance
The selling pressure in these quarters
became rather intensified at the close OF
the week and resulted on Friday in bring
ing about as much Of reaction in the
market as has been seen IN the current
month.
Such reaction is. OF course, the most
natural occurrence possible. Sensible men
| realize il as the veriest truism shat a
stock market cannot always rise and thar
when market gets into a position where
the speculative interest for the decline in
II is considerably eliminated a temporarily
recedtng movement is almost bound TO
| occur.
Buyers for Investment.
As regards Union Pacific. and perhaps
one or two other stocks OF similar class
what in all probability Is going On in the
market is another demonstration OF the
truth that high price for any stock
! considered quauttativsIy rather than
/ relatively. tends to diminish speculative
trading In IT, II does not prevent buying
/ OF the stock for investment, nor does it|
prevent speculation in It by great capital
lists or other people possessed Of large
means. but it does make the stock less
attractive 10 the majority Of people. and
! stock commission houses buy It less will
! ingly for customers.
/ No doubt there IS q feeling IN yarious
/ quarters that the stock market has dis
/ counted great deal Of definite recovery
/ N business conditions and that II vyoilId
( be the wise thing, regarded from a broad
/ point Of view, II the market should stop
( us advance for a time. and even possibly
/ decline little 70 a point where new
/ public buying Of stocks might be invited
/ The greater number Of daily professional
| Spectators in Wall street last week ex-
/ tended their operations for a fan.
What Rise Is Based On.
Contrariwise. there remain with undi-
minished strength the important facts on
which the recent rise IN prices has been
based.
First among these is a manifest con-
fdence based upon a large number OF
detailed considerations on the part of the
people Of the whole country in the fu-
ture and the immediate future of bust
ness; and it does not seem reasonable
that until this has abated there can be
any material decline in the security mar
ket
Secondly, the corporate interests Of the
country are now finding it easy to bOr-
row money for their needs. present and
prospective, and have, in fact, already
abundantly done so.
Thirdly, feeling OF reinsurance. whose
effect can hardly be exaggerated. and
which Is at every moment increasing. has
been caused by the change n the char
acter OF the national administration Ref
erence has been made to .he improve
ment In business that has gone on since
the beginning OF the year. and especially
since the time OF the reduction IN IRON
and steel prices. Il is a matter open 70
serious dispute whether this improve
ment has not been considerably greater
than IS admitted just now in Wan street.
even in optimistic circles.
Bank ciearings are all the time SWELL
ing. Increases in railroad earnings. as
they are quoted week by week and month
by month. are certainly on most rail-
way lines growing larger. In the iron
and steel trade it is trustworthy stated
that the Carnegie Steel Company at the
end OF the first quarter OF the year had
booked double the tonnage taken in the
corresponding quarter in 1908 and that
the company is now operating 50 per
cent OF its bar mill capacity Similarly, !
Il is authOritatively declared that the
orders and specifications received by the
Illinois Steel Company during the first
three months Of the year exceeded the
total for any other first quarter OF the
year in the company's history.
Treasury Condition Favorable.
The governments finances are getting
into better shape. the official Treasury
estimate now being that II the Improve
ment in customs receipts continues that
began to be noted since the middle OF
February. the governments deficit for the
fiscal year viii amount to only about
100000 against a deficit Of SnAoO0OOO
estimated az the beginning Of the last
session Of Congress. while II the enlarge
ment OF receipts keeps on at the rate IN
progress at the present moment, the def
icit VIII be further substantially lowered
There were those who accounted for the
pause in the advance In the stock market
last week by reference TO the excited
speculation for the rise IN wheat prices
now oentering IN the operations Of a de-
tsrmined band OF men In Chicago, but as
this speculation has besn limited IN char
acter, embracing only IN the most iDcon-
ssQue1tial way q general financial