The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1909-04-11
NEW YORK STOCKS
MAY SELL HIGHER
Easy Money the Chief Fac
tor in Present Bull
Movement.
CROP UNCERTAINTIES
TO BE CONSIDERED
New Stock Issues So Far This
Year-Dr. Henry Clews
Opinions.

NEW YORK, April u.-TomorrOw's
stock market opening will be watched
with more than ordinary interest For
three days stocks have scarcely been
mentioned even In ttHsVordinary places
of gossip and interchange of sentiment
Nothing OF sufficient Importance has
transpired to change the trend OF spec
u!ation or Investment during the ad-
5ournment. nor Is there any indication
IS to whether the leaders favor a con-
tinuation of the upward trend in prices
There are certainties and uncertainties
10 be considered. The tariff bill has
passed the House and the Senate Conn
mittee on Finance will report II OUT
within three weeks. after which II VIII
20 to conference 1t is reasonably safe
to figure II out of TIE way by May To-
Business is gradually improving and
once the tariff is out of the way general
activity may be expected-bst this has
been discounted.
The Open Market.
There is no knowing. however. just
how far the 'open market" in steel
products will influence the rest Of the
stock list There have been evidences
that the trade has not been cutting and
Elashing as freely as had been expected,
that the competition was lacking IN az
erosion and yet there are signs, accord
ing to authorities, that price-cutting
VIII go still deeper. The United States
Steel Corporation has been decidedly ag-
gressxe In the structural steel business.
/ making prices that have epabled them to
book enormous orders. The Iron Age
referring to this says that.
'sThe amount OF business closed by
- Ea cd
States Steel Corporation at price below
the best bids Of other companies has
been a matter of almost sensational In
terest-"
This may lead the independents to go
after other contracts with the price
pruning hooks In such a manner as to
4 make the business exceedingly unprofit-
able Can the independents stand a war
70 the knife7 That this question is
actually being considered is. in itself
4 rather discouraging.
The chances are that the Senate will
put a duty on iron ore and this will be
i 20 the advantage Of the big corporation.
Easy Money.
s But the strength OF the stock market
q In the last few months has been based
on easy money, and easy money rates
i are still the factor, stiIl the hope for
/ higher prices for stOcks-even though
this plethora of easy money Is primarily
i founded on the fact that through busi-
ness depression the funds that are gen.
orally employed In trade are available
for stock speculation. and even some Of
/ the most conservative investors are
looking to the good dividend payers for
returns on their funds. Improvement in
business will gradually draw money into
regular channels OF use.
/ Attention was recently directed to the
fact that the output OF new securities
for tre year 1909 TO date was small, and
that the accumulation of such high
grade shares as the Union Pacific,
Northwestern, Southern Pacific. Great
Northern. Northern Pacific. Illinois
Central. and others, by and for estates
and trusts Is gradually reducing the
floating supply.
months of 1903 witnessed the launching
of So. S53, 800 new stocks, SIS $50, 900
bonds, and s29. 2O4,5S0 notes. For the
first three months of 1903 the stock is
sue totaled $50. 1850. bonds SlO6 SIS. 600
and notes 1923. 266. 200. The demand for
lords during the g sing months OF last
year was very urgent and is still de-
cidedly lively.
The 10 sking up OF good investments
may have some effect on the market
In time but probably not for some years,
the floating supply and the new issues
Offering opportunities 10 investors.
The fact that prices OF many stocks
are at the record high would seem TO be
signal 10 20 slow. TO move with
caution and. II following the market in
g speculative way. in its flight. to keep
nearly eveped up. The room traders
way. Is fairly good one in that it
involves few chances.
Go Slow
II Is true that railroad earnings are
showing handsome increases. but COM
parsons are with periods OF poor earn
Te Fa~
Ing Up. This is a healthy sign The
Indications at this time are not favor
able for COCO crops, and yet we have
had the same indications time after
time and the outcome has been salts
4 factory in bountiful harvests. For the
/ welfare Of the nation, with prices on
the necessaries now In high levels Il Is
i TO be hoped that there viii be no set
back through any crop shortage.
BJt until such time as the crop reports
are more encouraging, until business
makes material progress In recovery and
until ths war of the iron masters ends,
II IL but prudence to remember that IN
favorable developments are at least pos
sibilities and also thai the closing prices
OF last Thursday on the New York Ex-
Grange were not far from the highest
figures Of the year 1909. not very far
from the highest records on very many
stocks
Dr.. Clews' Views.
DR.. Henry Clews takes a favorable
view OF me future IN tne market he
says:
Evidently the tariff will be revised
by its friends. and there Is little rea-
son TO look for any radical or import
ant changes. This minimizes the i'm
Dortance of the tariff in the stock
market. which Will probably feel only
Indirectly the relief which must come
10 general business when the issue IS
= -ettled- That event may be postponed
NTH the end of May. or even later.
30 one can fOretell.
"The immediate outlook for the
qarket IS favorable: all known draw
acks have been amply discounted
nd the abnormal supply OF cheap
toney will render ~ easy for market
tanfDulators TO create a more active
I'd stronger market. It must be re-
embered also that important new is
les aTss pending, and that II is &c
egadVantage of the great banking
terests to have the market wear a
oyant and more active appearance.
te situation. however. as already
own, has it's unsatisfactory ele-
al rFsarr L. .uFar