The Washington herald., 1909-03-02

New York, March Toward the close
Of last week there were many indica-
tons that during The decline IN the mar
ket which ran through the week before
sand eliminated in the sensational break
last Tuesday, an unusually large short
interest had been created.
Chief among these signs was me exist
ence OF q heavy borrowing demand for
stocks This IS an evidence Of specuia-
tion for the fail IN values thai Is not al
ways trustworthy, inasmuch as IL IS well
known that an actual liquidation Of stocks
often assumes the form OF a deferred
rather than an immediate delivery; that
IS to say, those really possessing the Sc
curities that have been marketed have
not AZ once delivered their own stock
under the sale. but have borrowed It for
time from other parties. thus tempo
rarily eoneealing the fact that the Hquida-
ton has taken place.
A short interest OF this kind, thus
brought into being, Is. however, although
Of a different character than that entered
into by nero spectators for the decline.
none the less real. and has to be Offset
sooner or later by a delivery Of the
original shares or by a repurchase in the
open market Of the stock sold
Rally Is Logical.
AL developments in trade circles in the
last week have tended toward the strong
probability that, while the recent cut in
the price OF steel VIII make an end to
whatever warfare, secret or open, has
prevailed IN the trade. Il VIII undoub1-
edly serve 10 clarity the general iron and
steel situation. Not q little buying Of
stock has been induced by this broad
consideration, and, with the market IN
an oversold condition. the occurrence Of a
sharp rally vas logical enough.
The one definite force IN the market
to-day, at least IN the first Two hours
Of trading, was a more or less complete
reversal Of the character OF speculative
guessing as to the outcome OF tie anx-
iously awaited decision Of the Supreme
Court IN the commodities clause case.
Il Is Indeed. not impossible that the
decision may not come for months vet,
as the case IS a complicated one, and
must require extended study and delIb-
GRAFTON on the part Of the members OF
the court, Il. indeed, Il does not pro-
woke widely different views among them.
Upon the receipt OF the news Of this
probability. Reading stock, which had
previously advanced over five points.
broke q couple OF points. but the stock
rallied and held with great frmness un-
IL the close Of business.
Most Issues Gain.
The general play Of the different
forces that have been described suficed
10 bring about decided strength in the
, market as 2 whole, gains OF between
one and two points IN the principal
stocks being not al all uncommon.
4 further helpful factor in the stu
alton to-day was the circulation OF ru-
mOrs that the great weakness recently
displayed IN the market for raw COP
Per metal had stimulated large pur-
chases OF the commodity
Toward the close Of the day the rise
in the market was so pronounced as 70
invite not a little pToft-taking. but a
declining tendency, having its origin IN
liquidating sales Of this sort. was checked
for the time being by q brisk upIuru in
Amalgamated Copper Before The close
the market was again inclined 10 heavi-
ness. the United States Steel common
shares leading in the downward move
rneut