The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1910-10-17

New York, Oct 1.-THE change In the
character of the security markets last
week was extraordinary even for mar
ket subject to such sudden shifts as that
on the New York stock Exchange In
the beginning Of the week trading was
as dull and meaningless as had been
noted on few previous days of a year in
which apathetic markets have been I'M
usually numerous; on the last full day
Of trading the market for both bonds
and stocks was the most active for near
~ three months. and for bonds and
stocks combined the most active and ag-
gressive for a considerably longer pc
Rod.
On Monday few more than 200 600 shares
OF stocks changed hands and less than
S20Oo0OO in bonds: on Friday the turn
over IN stocks was close 20 100000 shares
and in bonds 10 about 50, 10000 The in
crease in strength was quite as extraor-
binary as The increase in activity. and il
was notable also that the market took
on a much broader range-that Is, that
the number Of different issues in which
sales were made greatly increased.
From a dull professional market early
IN the week, II became one with all the
outward evidences Of a market in which
the confidence OF investors had been
measurably restored and spectators had
taken the long side with a greatly IN
creased degree Of assurance, For this
remarkable change tn conditions an i'm
portant reason. no doubt, was the per-
tinaelty Of spectators who had operated
for a decline because OF an exaggeration
Of the extent OF the business reaction.
Two Houses Fail.
In the latter part of the week two
failures that occurred in stock exchange
houses We're due very largely TO these
considerations. These were generally un-
derstood 70 be bear failures. Covering by
other SPECTATORS short OF the market
was a feature Of the trading, and there
is no doubt that the retreat Of specula-
tors for the decline had much 10 do with
the weeks advance. But it is idle 10 sug-
gest that the extraordinary Improvement
IN the markets was due principally to
covering Of short contracts, Just as il
would be idle 10 assume that short con-
tracts would have been retired in large
numbers but for a notable Improvement
in financial or economic fundamentals.
Before the week began. though the
market had been firm, or. as often char
acterized. a creeping bull market, the
attitude of the men ordinarily more in
fuential IN financial operations had been
waiting one. There We're good reasons
for hesitancy. among them the political
uncertainties the delay in reargument OF
the STANDARD OIL American Tobacco, and
corporation tax cases, some difference Of
opinion regarding various conditions OF
the crops. the long-drawn-oUt controversy
over cotton bills Of lading, dissatisfaction
over extremely unfavorable conditions III
the country's foreign trade. and uncer-
tainty over the ability of railroad man
ayers 10 establish arguments for higher
freight rates before the Interstate Com
merce Commission. On some Of the most
important Of these matters, notably the
decision in the Standard OIL American
Tobacco, and other important cases be
fore the United States Supreme Court.
indecision must continue, for the reargu-
ment of these cases was set for the
period beginning January
Crop Report Gratifying.
On other developments of the week
We're cast a brighter prospect than had
been observable since they became conse-
quential factors, IN regard to the crops,
developments were particularly crafty
ing and il was Immediately following
the publication Of the government crop
report on Monday that the change in the
character OF the market began. The
report far surpassed all the more san
guine expectations, showing. as COM
pared with the previous monthly report.
an increase OF 100000 bushels in the
indicated yield of wheat, an increase Of
81, 900. 600 bushels in corn. and an increase
Of 4, 10000 bushels OF oats, Both the
corn and oats crops far surpass all pre-
vious records, and the wheat crop, though
smaller than that Of last year. Is above
the yields of 1867 and 1905.
Declines as steady In the grain mar
kets as were the advances in the stock
market followed the publication Of the
report and the favorable corn and cotton
weather throughout the week, so that
in one important respect the movement In
stocks was proper reflex OF a similarly
natural movement in grain. In cotton
the week was one Of continued strength,
but the strength could not be attributed
TO poor crop news. II was rather due 10
the increased operations Of spinners in
this country and the circumstance that
they were out Of stocks while running
short time. and 10 similar conditions
abroad following the settlement of the
troubles between English spinners and
their employees.
Boon to Foreign Trade.
The high price OF cotton is, OF course,
q generally unfavorable development in
that il tends 10 Increase the cost OF
living. but extremely favorable because
tWo-thirds at least of the cotton crop
viii be IN demand abroad and a much
needed maker OF exchange thus supplied
10 rectify conditions in the country S