The Washington herald., 1910-05-23
Business at Low Ebb for
Past Two Weeks.
LITTLE CHANGE IN PROSPECT
Many Spectators Inclined to Take
Optimistic View Of Situation,
Though Cheerful Financial Senti-
ment Ia Asserting Itself, Due TO
Continued Ease of Money Market.

t4lS II OuI IN OI July III lIldl year III uedl-
ings in stocks OF but 1900 shares has
the security market shown such con-
tinued inertia as It has in the last
fortnight, and especially in the last week
The low record of transactions alluded
TO is still likely 10 mark the limit in this
respect for a considerable time to come
Nevertheless II seemed TO people in Wall
street last week, or IN the entire earlier
portion OF the week. as II they had never
seen a period when market affairs were
so stagnant.
Perhaps one reason for the dullness
was the practical stoppage Of business
In London incident 20 the funeral cere-
monies Of the King Of England. with the
imminence also Of what may very likely
be three days stock exchange holiday
here at the end Of the month. But the
main reason for the inactivity of the
market was undoubtedly, as 1t has all
along been. the fact that the market is
now more or less IN a state of equilib-
rum. and that the time Of year is i'm
portant and even critical. in a financial
sense. since 1t is when something like
real assurance is on the eve Of unfolding
regarding the results Of the years har-
vests
Yet despite these uncertainties the
statement could be made at the end Of
last week, just as at the end Of the
previous one, but even more positively
than at the former time, that a more
cheerful financial sentiment was assert
ing itself
Many Have Pessimistfc View.
All sorts OF theoretical arguments may
be adduced 10 show that the country IS
going rapidly to the dogs; that our people
are eating their heads or with extrava-
gance; that the automobile industry is
gathering TO itself all the spare money
OF the country; that our crops are bound
TO be so small in comparison with our
growing population that a substantial
degree Of famine will result therefrom.
and that the balance Of trade is to go on
turning so heavily against US that the
country viii soon be deprived OF the
wherewithal 10 meet its obugations but
somehow these arguments are more con-
vincing on paper than they are In reality
Massing together all the dark clouds
they can cOnjure up. spectators for the
faU protest that national ruin and dis
aster are at hand But nevertheless rail-
road gross earnings in the country are
still expanding. and here is the warm
summer sun still shining down upon go
O00000 OF the busiest, the most active, the
most ingenious, and the most energetic
people on earth. and IN spite Of the
shadows and bogies born Of a dull stock
market with which Wall streets imagi-
nation takes delight IN soaring itself, in
vestors are not selling stocks and are
confessing TO themselves in their hearts
that these United States will In all prob
ability IN the future, as in the past, be
q pretty good place 10 live IN and in
which to make money.
Money Continues Easier.
Doubtless the fact that the money sit
uatlon has become permanently and fun
damentally easy contributed much 70 the
growth OF last weeks optimism The
bank statement published at the end Of
the week before exhibited an actual sur
plus reserve OF $4,000. 900. a figure larger
than the average for the season, and dur
ing the last week rates for the use OF
money here constantly dwindled, so that
on Thursday call money was offered at
per cent.
The Bank Of England IN its weekly
showing again reported an abnormally
large percentage OF reserve held against
liabilities. The report of the bank again
bore witness, as II was bound 20 do. to
the effect Of the temporary tying up OF
money in England, owing to the collec-
ton OF internal revenue taxes there.
In short time this process will be
over, and the presumption is that money
rates in London will then fall, Just as
they have done In New York While
the tax collection is in progress the
Bank Of England discount rate will prob
ably be kept at its present figure, and
IN the meantime the maintenance Of this
rate along with the ease OF money here
leads necessarily 10 a hardening sterling
exchange market in this country.
EHOrt to Keep Up Prices.
The rise in sterling here during the
week was also due in part 10 the arti-
hciaI efforts Of bankers and others. who
expect 70 have a large quantity OF ster-
ling for sale in a short time IN the shape
OF drafts upon Europe as the result Of
large recent bond sales TO keep the price
OF exchange up. These bankers want. OF
course, TO have as high a sterling mar
ket as they can sell upon. The bears in
Wall street tried 70 make as much capital
as they could last week out OF the fact
that official announcements regarding
these bond sales were still not made. but
inasmuch as the exact status OF such
bond arrangements Is perfectly known 10
leading financial interests. the "discour-
agement" and disappointment pro-
fessed by spectators did not make much
Roadway even among themselves As
the week went on the death Of the King
Of England continued TO lose whatever
force it once had as a stock market fac
tor. The event has held financial BUSH |
ness In check in England for several
days, and must affect somewhat the BUSH /
ness OF the London retail tradesmen In /
the approaching social season that would /
reach its height in the next month in /
the ordinary course OF affairs But at
tention will soon converge. and IN an in /
teresting way. upon the coronation OF the 1
new King. and it may prove TO be the /
case that the losses of the London mer- /
chants by what has happened will not
be so very great after all