Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-07-17
BOOM THE MARKET
Interviews Intended to Restore
Confidence of Public.
WERE BEARS; NOW BULLS
Significant Change of Front by Big
Stock Operators.
THREAT OF A COPPER WAR
Clash Between Big Interests Prob
ably Would Cause Clash in
Quoted Values.
WE'RE BEARS; NOW BULLS
THREAT OF A COPPER WAR
By. w. 6. Nicholas.
rrespondence Of The. Star.

NEW YORK, July 16, 1910.
An effective campaign of reinsurance"
Is being conducted for the benefit of the
stock market and to restore to the public
mind a degree of confidence very much
needed. Leading f1nanciers and captains
of industry have Joined in the campaign
and are lending it their active help. They
are apparently working with an entire
agreement of purpose and are coming out
In interviews of most optimistic tone
They say that in their opinion the de-
preston in business and In the stock
markets has gone far enough and that
the time has arrived for q change of
front. There is also substantial agree
ment upon the general proposition that
present prices represent the discounting
Of about all unfavorable developments
and conditions likely to appear. This is
certainly encouraging, coming from
group Of men more than half Of whom
have been either openly or secretly
against the market for good while.
The team work is undoubtedly having
a beneficial effect on sentiment, and while
open and aggressive buying Is not yet
SO much in evidence as might be desired
by overanxious spectators, there has
occurred an almost entire stoppage OF
liquidation.
Bears Becoming Cautious.
The bears have discovered this latter
feature and they are beginning to draw
In their horns. Being skeptical as to the
sincerity of these interviews and con-
STRUNG the campaign of reinsurance as
a move upon the part of insiders to talk
the market up SO that they might I'M
load some more stocks, the bears pro-
ceeded to pound the market on every
sign of reaction or weakness. They
succeeded several times in breaking
prices a point or two; and on the report
that Germany had made an offensive
diplomatic play against the United States
touching Nicaraguan affairs they broke
two or three of the favorites 81 points
or more in one day.
Then again on the announcement that
the interstate commerce commission had
decided to suspend the freight rate adj
vances four months they raided prices
again. In both cases the disconcerting
fact was brought to light that the break
in prices was entirely caused by short
sales, almost no long stock having been
dislodged. These two raids resulted in
very material increase in the outstanding
short interest, and the bears were COM
PEELED to bid against themselves to get
back a part of their lines. Consequently
the market sharply and easily recovered
losses and with each of these develop
ments the situation took on a more cheer
full color. Actual buying for long &C
count set in to reinforce the job lot and
had been going on for two or three
weeks.
|. Really Big Men Silent.
There was nothing really new in what
these big men have been saying in reas-
surance propaganda, but the force Of the
action lies in the fact that the people
who did the talking were willing to say
anything. Their CONSCIOUSNESS must be
taken as evidence Of a desire to see mat
tiers mend. Thus far nothing has been
heard from J. P. Morgan. William Rock
efeller, John D. Rockefeller and several
These may come along later and will be
quite as welcome as though they were at
the head Of the list Of cheerful takers
The flood of hopeful utterances is being
contributed to quite extensively by men
who are more than suspected of having
been actively on the bear side of specu-
lation off and on since last fall. With
few exceptions they have been either in
expressed or silent sympathy with the
crouch because of the governmental de-
termination to take further decided steps
for the supervision and restriction of cor
porations. sentiment which runs
through much Of the uplift literature is
that q good deal of the crouch was due
to understand the depth and force of the
popular feeling behind the action of the
administration and Congress to restrict
the freedom of big insiders to exploit
command and run as individual assets.
Reluctant admission is now being made
In these very quarters that the restrictive
and supervisory movement has come to
stay and that still more advanced ground
Is likely to be taken very soon in the en-
actment and enforcement Of laws for fed
eral control of new capitalization, bonds
and stocks. 1t comes hard for the bank
ing combinations in Wall street to have to
yield to any authority in these matters.
they having heretofore enjoyed a free.
dom which has amounted to license to levy
oppressive tribute on all important enter
prises which need new capital. They nat
urally rebel against the taking away of
their tollgate privileges. These eleventh.
hour interviews would seem to show a
recognition on their part Of the inevitable
and OF willingness to desist from fur
Their attempts to teach the public and the
enormous sacrifice of values. as they have
been doing for the last year.
Gradual Gain in Prices.
The improved tone Of the stock market
has been attended by a gradual gain in
prices. The average Of quotations is al
ready several points above that reached
at the extreme of depression. Opinion in
the street is still very much two-sided as
TO the immediate future but the bull side
is gaining recruits day by day, and there
is growing feeling that we may witness
rising markets throughout the remainder
of July and possibly we'll into September,
when the demands for money for crop
moving purposes may serve as a tempo
rary check on speculation. Since the July
distributions of dividends and interest,
call money has been getting easier and
funds for stock market purposes are once
more easy of access.
Another cause which is contributing to
the feeling OF speculative confidence is
the ease Of the foreign money markets.
London call money Is now down to per
cent and London time money is also easy
and in oversupply. This situation makes
1t altogether probable that the inflow of
gold will speedily assume large volume.
The disparity In interest rates between
America and the old world money centers
increases the likelihood of extensive i'm
ports of the yellow metal Another thing.
that tends to a better feeling in the home
money markets is the discovery that
western and southwestern banks are in a
sounder condition than they were sup
posed to be. Statements OF condition as
Of June 80 which are being sent in to the
controller Of the currency show national
banks to be almost universally safe and
sound.
Overextension Of Loans.
There has been some overextension Of