The Washington times., 1909-06-06
MARKET OUTLOOK
SEEMS PLEASING
Weeks Rise in Prices Due
TO Causes That Are Easily
Explained.
OF STEEL
STARTS PRICES UP
Attitude of Public Important Fac
tor in Future Course of
Trading.

NEW YORK. June 6.-One week ago
| spectators and financiers. as they sat
talking shop or resting al some point
| far from the noise and care of business
were wondering what that furry in steel
meant Just before the market closed
for the holiday. Now it has been re
veaIed The listing of Steel shares in
Paris was the thing needed to start
the market upward and there has been
week of activity and rising prices,
very satisfactory. if not so rapid OF 50
unprecedented as many might wish.
Beginning with the Steel shares the
advance began East Tuesday with the
other industriaIs Canadian Pacific.
among the railroads. was the only one
that indics ed the coming rise Other
wise the rails were tagging and activity
for a tine was almost confined to
steels. coppers. and car foundrys. Then
the railroads, under the lead of Southern
Pacific, responded to the rise. and with
the Pacific rails leading the upward
movement. finally extended to the trace
/ ton shares and spread over the list.
Market Moves SteldIy Us
! There has been a whole week OF it,
the market moving strongly, if some
what slowly upward. and stocks show
an advance for the week of small frac-
lions in such stocks as Colorado and
| Southern to points up in sucn issues
as Republican Iron and Steel Lacka-
wanna scored the biggest net advance,
and other rails are from " to s points
/ higher now than a week ago.
Causes leading to the rise are simple
and plain. The industrials were due to
i of F,f-f fer brrcs
prospects, larger orders booked and ex-
pectation of a busy summer. based upon
the hope of big harvests and demand for
! their product. Coppers were due 10 a
rise because of the strengthening de-
mand for copper metal here and abroad.
The railroads were due to rise because
1 of reports of good crop prospects from
/ the West and Northwest. as shown in
/ the buoyancy of Canadian Pacific and
/ Southern Pacific and St. Paul during the
| entire week. In the terms IF the street
the market has been discounting better
/ business and good harvests. The Paris
incident was the force to start the bull
market going.
Market Closes In Uncertainty.
Yesterday the market was quite as ac-
tive as on other days CT the week,
though there was feeling that prices
might fall away after the rise of the
past few days The fact tnat this feel
ing was widespread was evidenced by
the volume of profit taking sales which
poured into the stock exchange during
the short session yesterday. The sur
prising thing was that every time the
stocks were driven downward fraction
of a point they almost Immediately
! came back TO the higher figures and
! showed a tendency 10 go higher. In
| fact it was only the increasing pressure
! of sales from commission houses and
other sources that checked the rise.
IN the closing yesterday there was
| considerable confusion Of bids, sales
and offerings, causing the market 70
weaken a few minutes before the END
and then to mount higher at the last.
with many stocks closing at the highest
/ for the day. The situation as seen III
/ the clear light of today Is uncertain,
and The interest which centered in the
| COMPARED with the interest today as
/ SPECTATORS glance back over the record
/ Of yesterday and the week OF which II
| was the close.
Reaction But Natural.
It would not be surprising if the
market had a mild set back in the early
trading OF this week. That is perhaps
due. but sentiment is distinctly bullish
and though early yet many are look
| ing upon last weeks operations as the
| beginning of the summer rise in stocks
which comes about as regularly as tie
| tide or the sunrise
To some the bank statement yesterday
was a little disquieting. II is true that
| the banks suffered something akin to a
raid upon their cash resources to pro-
vide the vast amount Of money needed
I 10 conduct operations in the street. As
vet, however. little impression has been
| made upon the great volume of money
that has been accommodating in the
banks for many weeks. But If the bull
market > u continue more and more
money VIII be demanded. This means
In the immediate future higher rates on
call loans. and If activity is the thing
desired IN the stock market the bank
statement yesterday affords sufficient
proof that the bull market has started
| in earnest and viii possibly continue as
long as money is plentiful and cheap.
Public Begins To Buy.
| Another point is clear. that the public
has only begun to come into the market
For the last two days combustion house
orders have increased in volume. and
the selling for a turn yesterday was an
indication that spectators far from
Wall street have awakened 10 the idea
that there is money to oe made in
stocks. When the public buys then
there is A bull market and when the
public sells or is quiescen1 there is
bear market or a drifting one. such as
has been seen for many weeks Much
depends upon the attitude the public
may take toward the market tomorrow
morning.
should the Wall street Offices find
big batch of orders TO buy in their
mails tomorrow or receive such
orders by wire before the exchange
opens prices will surely advance, and
this Is the problem waiting to be solved
Most Of the CORRESPONDENCE houses are
busy getting out optimistic letters and
aCyices regarding the advance in stock,
and everything will be done to manufac-
ture a bull market that can be done
wisely, and the expectation here is that
/ the public is hungry for a dip into
speculation and that the orders TO buy
VIII be forthcoming tomorrow.