The Washington herald., 1910-06-05
WALL STREET NEWS
Market Is Firm and Strong
Near the Close.
TRANSACTIONS ARE HEAVY
Weekly Bank Statement Made Pub
lie After Half Holiday Session Pre-
Eents UnaccountabIe Showing of
Decrease in Surplus Reserve in
Both Forms of the Return.

New York. June 4-To-day for the first
time since Friday a week ago the declin-
ing movement in security prices seemed
to reach a level whereby the demand
for stocks was sufficient 10 eQualize, If
not overcome, the pressure Of hquida-
ton and speculative short selling. Trans
actions were in large volume for Sat
urdav half-holiday, and growing feel
ing was manifest in the financial district
that the extent OF the fall in prices had
discounted a great many prospective un-
favorable developments, which might not
occur after all. Houses usually acting
for English firms were large buyers u
stocks, as they have been during the
week, and in the London market, before
the opening of business here, prices Tor
American securities were notably higher
than other quarters of the market. where
more or less weakness was visible, be-
cause of symptoms Of political unrest
IN China. Our own market was firm
and strong in the last hour OF business
and closed at gains running from l to
2 points in the active stocks from the
lowest prices lately touched.
Decrease in Surplus.
There were no features in the market,
all stocks rising and falling very nearly
in unison. and substantially the only
news OF Importance was that comprised
IN the weekly bank statement, made pub
Ito after the business hours, which pre-
sented an unaccountable showing OK a
decrease in surplus reserve in both forms
Of the return. That the credit position
here has been intrinsically and greatly
improved by the drastic liquidation OF
the week, which has run throughout the
stock and commodity markets, Is aDso-
lutely beyond question.
Nevertheless, to-day's bank exhibit re-
ported an increase Of $l,SOa400 IN loans
fn the average statement. and q reduction
OF s.. .5S6.OO0 Of loans in the actual figures
Possibly the statement Will be corrected
as 1t often is in the succeeding week.
The violence and continuity Of the de-
cline In the stock market that has taken
place since a week ago last Friday has
not been witnessed since the panic days
OF 1907; and 1t may be questioned whether
even IN this former period there was a
time when the selling movement IN the
market was prolonged in such way
without any intervening reaction as on
the present occasion.
Cause of the Declines.
Yet, after all. the fall IN values has
been in no way surprising IN view Of the
character OF the financial news. The
situation Of our railway companies as
regards the matter OF financial income
and outgO has long been perfectly vel
understood by all intelligent people. Il
may be said that the railroad companies
have never yet made a complete and
elaborate justification such as the law
yers would call formal and sufficient
proof of their demands for increased
freight rates and in the more thickly
settled parts Of the country Of increased
passenger rates.
But common sense observation on This
point is enough ANY one who thinks al
all and whose thought is entitled TO any
consideration, knows that IN recent year;
the cost OF everything that the railroad
companies have had TO buy has tremend
ously increased, while as compared with
ten or twelve years ago the price toi
transportation service is at least no more
Unless the public is willing to pay tht
railroads properly for the service rem
dered bankruptcy stares the railroads in
the face.