The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1909-04-12
PrOft-taking Does Not Shake
Strong UndertOne.
REALIZING SALES ARE MADE
Professionals Take Advantage of
the Uprush of Prices Early in the
Week to Turn Their Commitments
Into Cash-Course of Trading Since
Then, Therefore, Has Been Logical.


relatively diminished
In general. after the excited uprush in
values on Monday. the rest Of the week was
devoted TO proht-taking. which from
professional trading point Of view, was
only natural, because Of the heightened
suspension Of stock exchange business
that was about 10 occur
The market however. preserved
throughout All this realizing the same
sturdy undertone that It has long MAIN
tanned. and. indeed, strength was shown
in so many specific quarters which on
the last day of the week was again dis
played in the standard shares that the
market closed finally at a new high level
for the year.
AS time goes on evidences increase Of a
more cheerful feeling IN the business and
financial world, not only here, but in
Europe For more than fortnight the
daily cables from London have described
the security markets there as buOyaut, a
Characterization which, II II is some
what exaggerated. YET possesses this sub
stantial truth. that a steady upward
movement is discernible in the price of
English consoIs and most other foreign
investment securities
UneRSiness Lessons.
Cause for this is no doubt the disap-
pearance Of elements that have for some
time made for .uneasiness regarding poIit-
zeal affairs and a constantly diminishing
rate for the use Of money, which must
again before long result in another fora
al reduction in the Bank OF England's
discount rate These rates in the open
London money market fell last week be-
low l 3-S per cent. the lowest seen at this
time Of the year since 1891 Such a
plethora Of money is, Of course, due r.
great part TO the general trade depres-
sion; but our leading banking authorities
are paying more attention now to the
part played in bringing about this state
CT affairs in the worlds increasing no
duction Of gold.
There are absolutely no signs yet OF
any lessening in the immense flow Of the
yellow metal from the Transvaal mines.
and there is every indication that in our
own country the production Of gold is
bound TO become much larger in the i'm
mediate future. Estimates proceeding
from those whose business relation to the
matter puts them in a condition 10 be best
informed about it are TO the effect that
the United States gold production this
year VIII considerably oUtrun all previous
records
As concerns our home situation, a great
source OF the current optimism ex-
pressed in the higher banking circles
is the strong feeling Of confidence en- !
gendered by mental reflection over the way
in which the business interests Of the
country have withstOod the recent panic
Obligations Lfqufdated.
The head OF a banking firm doing a
large business in commercial paper stated
last week that In the troubous times Of
October and November. 1897. there were
outstanding over 800. OOO. 600 OF paper bear
ing the names Of miscellaneous American
business houses and sold by his firm to
clients. He declared that nothing had
demonstrated TO him more forcibly the
essential soundness Of American business
conditions than the circumstances that
every one Of these obligations had been
liquidated without a dollars loss to cred
itors
General signs, however, are becoming
abundant that the sequelae Of all this
trade depression are disappearing. and
that the low prices caused thereby In so
many lines Of manufacturing industry
are serving the purpose Of creating new
business.
This is perhaps more exemplified in the
steel trade than anywhere else, even II
as yet only IN certain branches Of the
trade. Those who have taken occasion 10
make broad estimates on the subject re-
Gently and have engaged I'm rather eIab-
crate Investigations in order TO do this.
h,F .,r =
p per cent IN the cost of building con-
struction that has occurred has obviously
started a work of reconstruction in nu-
merous large cities throughout the coun-
try that has up TO this time been alto
gether delayed.
In many OF the Western cities three
times as many building contracts have
been made as at this time in 1905: and
IT is interesting to note that stimulus 20
all this work has been supplied not only
by the reduction in the cost OF building
material .tself. but IN the greater eff
cency Of labor. and that this same great
er efficiency of labor IS exhibited IN every
industry in the land
Workmen are everywhere anxious to
hold their jobs, and strike talk is no
longer popular. In consequence work re-
quiring manual labor is being done all
over the country IN a better way. more
quickly and at less cost than ever known
before, and our railroads and other great
corporations are reaping the benefit OF /.
IL
Railroad Expenses Smaller.
To be sure. all this at the moment has
a certain drawback in a merely super- i
fetal way The railroad companies. for
instance, in so far as they are enabled
TO transact the same amount of business
at less expense than they did two years I
ago. are not so impelled as in the former
period 10 lay out money in new equip- (
ment and similar purchases. and therefore
companies whose business It is to meet
demands OF such kind are finding the
times rather dull. But of course no per
son OF any sense regards any such mere
temporary condition as a criterion Of
matters taken in the long run.
The practical certainty that bottom
cost of production has been reached and
the undisputed certainty that labor has
become sensible and efficient may have /
for its first consequence such a lfnsita- /
ton OF new purchasing orders as may be /
displeasing to the sellers OF steel and
iron. But this must be. as the immedi- /
ate event has proved, an inspiration to 4
new business and the creation OF wealth. /
and with affairs once started in this 4
direction every one knows what mighty 4
developments even a years progress In /
our resourceful land can bring about
It is considerations Of this kind that /
have plainly underlain the advance IN /
the stock market in recent weeks.
"Andy" Freedman Fined.
Perth Amboy. n. J.. April u-Andrew
Freedman, ex-president OF the New York
Giants. was arrested here to-day charrnd