The Washington times., 1909-04-18
BULLS IN CONTROL
Of STOCK MARKET
Easy Money Is Still the
Chief Factor in the
Situation.
STRENGTH IN COAL
STOCKS A FEATURE
Bears Turn Quickly, and Gener-
ally Find Few Stocks
For Sale.

NEW YORK. April 1s.-In the event
OF the Supreme Court rendering a fa-
iVorable decision on the commodities
clause" tomorrow. the stock market
viii probably seek much higher levels
Immediately. If the decision is unfa-
vorable. there is but little reason to
expect a reaction. as Il is believed no
tification of intent 10 segregate coal
properties will be made by the manage
ment of the coal roads, in line with
plans that have been made to meet
emergencies. There might be a tenn
porary break in the anthrscites, but the
action of these stocks during the last
few weeks has shown that the shorts
have few chances of getting away with
profits. while the rapid rise in Reading
during last week was an evidence of
the strength Of the powers that control
the stock, and 55-point rise in Lacka-
wanna is yet another threat against too
great familiarity with the coalers-
Lackawanna has been locked away.
Central of Jersey is being retired to the
strong vaults of permanent investors,
and Reading has a future. This is ar
gument enough for a sharp rise in
Reading, whenever the rise develops
Easy Money the Influence.
Easy money continues 10 be the hope
of the owners of stocks for higher
prices. There Is such a plethora of
cash in New York that the solid divi-
dend payers are considered as good
bargains around present prices. There
seemsato be some disposition to hold
pricesH about where they are, the same
old story OF wanting the market to re-
main about where it is. with narrow
price movement. permitting the bears
TO get out line of shorts and bring
moderate declines and then forcing them
10 cover at a loss, until such time as
the conditions that make for certain
prosperity and American optimism shall
have made larger progress. That busi-
ness is improving with each passing
day is admitted; that the enactment Of
n tariff law is the matter or a lew
weeks is generally believed, while the
story OF the crops to be. about which
there Is so much dispute at this time,
will be much nearer the truth in an
general impression in weil-informed
circles Is that the, harvest will be
bounteous one; that there will be no
great shortage in any one crop, despite
The calamity calls from the Chicago
The records OF the Department of
Agriculture, unbiased, prepared by men
who have studied averages in many
points and from the reports OF loo
agents all over the growing area Of a
specific crop. have in time past proved
for anything but good harvests The
American farmer has discovered thing
or two. He has made money for num-
ber of years holding on to his cereals
and not selling as soon as harvested.
and this is what he is doing with much
of the crop OF 1908
Bears Turn Quickly.
But while waiting for the develop
nent of the better conditions on which
10 found another strong upward move
g g. L1 g~fo - "a e
w-h d hold large quantities of stocks to
perlnit the bears TO get gay with Sc
curities. The latter may be given rope
, enough occasionally TO increase the
Short line TO generous proportions. but
when the time comes. covering viii be
attended with diffculty-just such diff
ficulty as was noticed in the last twenty
minutes of yesterdays session.
There is real argument in the claim
o. the bears that prices are high, that
favorable developments have generally
been discounted. that the railroads must
Z go into the msrts and buy material,
supplies, rails cars, etc, after neglect
fo'make the best net showing possible.
But these arguments are met whenever
offered by the statements that the
prosperity, the future OF the United
States can not be discounted"
That a large percentage Of old secur-
ities are being taken out Of The market
for permanent investments and that a
smaller volume of new securities is be-
1ng maVketed, Is another bull argument.
For time II looked as If the list was
hard to bull. This condition always ap-
pears better founded when stocks like
the Fries Denver, Missouri Pacific etc.
are leading the advance. and Southern
Pacific. Union Pacific Great Northern.
Northern Pacific. and ST. Paul are the
laggards. And just when the impression
IS strong, II is likely that there will be
a runaway rise in the high grades that
Will demonstrate that stocks do bull
easily.
1906 Conditions Still Missing.
Conditions OF 1906 have not returned
event the most rabid bull viii not claim
this 20 be a fact We have the llghtest
foreign trade balance for March in
years In March. 1905. the excess of ex-
po-ts over imports was valued at
50 10000 Last month the excess wa1
arSal 20 S5,176,OO0. II is admitted that
the imports were rather large, there
being some anticipation OF the tariff
law but there is encouragement in the
fact that the bulk Of the imports were
OF raw material for use in manufac-
turing.
The foreign situation is not inviting.
The decline in British consols has been
quite severe No sooner was the
Austro-Servian difficulties settled than
trouble and English capitalists. at least
some OF them, already nervous over the
Anglo-German situation. sold the
American securities for which q mar
ket waited. and the manner In which
It took their stock and rallied on II
must have been a revelation TO the
sellers. When matters quiet down they
will want the stock back again, and
may have 70 pay higher for Il.
Street Acts Well
The bull operations have been en-
couraged by the action Of the Steel
shares. II is admitted that a large
business is being transacted, but the
profit Is small: indeed, some contracts
have been taken on unusually close. but
whenever the old Steel bears break out
and start selling they find that the Of
ferings are light and the inference is
plain, the stock is going into the strong
4 est kind Of hands and the interests back
eof Il will permit OF no liberties beyond
" certain point. The limited sales OF
1.-THE preferred stock, as shown by the
D subioined table Is an evidence Of the
fact that IL is entirely sStisfac tory, as
to dividends and security, TO investors,
and is very strongly held-when even
the stories That have been told OF steel
demoralizations will not depress it-for
Il is not far from top record at this
time. -,