The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1910-05-08
WALL STREET HOPES
FOR BETTER MARKET
Kings Death Not Likely to Check Improvements Sirua
ton in All Its Phases Carefully Considered
Prices a Favorable Factor.
By JOHN GRANT DATER.
Especial to The Washington TTmeS.l

Especial 10 The !
NEW YORK. May $50 Wall Street
the sudden alarming illness Of King Ed
ward VII Of England, on Friday, termi-
mating in his regreJtabIe death At mid
night Of that day. came like the pro
verbal bolt from the blue" The sad
Development fell upon the local security
market at an inoppOrtune moment Just
when speculative sentiment, after a fur
Their interval OF depression early in the
week. was changing for the better. and
when q price recovery based upon a fav-
Orable turn Of affairs. including sue
cessfuI negotiations for large sales OF
american bonds TO Europe. was well
under way.
London and the continental markets,
which had been considerable purchasers
of our stock on recent declines, sold eN-
tensiveIy IN the local market on Friday,
checking the Improvement and fniuenC-
ing a reaction. But there was no de-
mOTalizatiOn Of the security market on
Friday, and during the single hour al
lOLted to business on Saturday, the local
exchange closing at II o'clock, out OF
respect TO the memory Of the late King,
prices though irregular were well sus-
tanned.
As yet, Of course, IL is impossible 10
determine whether or not the security
markets Of the world. and particularly
those OF London. Paris, and New York,
have fully measured the influence OF
King Edwards death The London
Stock Exchange closed its doors Satur-
Guy. and in consequence there was prsc-
ticaHy no way Of determining the effect
Of the Kings death upon the British in
T-.z~- eel n
money view Of all Developments, whether
good or Ill. and so It happens as nat
uraI result that all exchanges and cen
tiers Of trade everywhere are seeking 10
determine the true influence Of the
change in the British monarchy
Il is, OF course. a highly complex
problem, which England faces, having
its International as well as its national
political phases, all Of which are m
tirnately associated with financial mar
Acts, money and exchange rates. and
security prices, and having some bear
ing also upon very many phases and
features Of commercial life and indus
trial activity And IN view Of all the
great pOtentiaIities, IL lis highly import
ant and encouraging 70 note that leading
bankers everywhere take the hopeful
view Of the situation
Although. as has already been men
toned. the closing Of the London stock
Exchange has made It impossible 70
measure the influence Of King Edward 5
death upon the British investing public
London banLInE interests were IN q po-
sition to do so, in so Tar as American
securities are concerned, and though
sales for London account taxing Ine
totals Of Fridalr and Saturday into con
alteration, undoubtedly exceeded pur-
chases, there was assuTedly noJhlns
which indicated that London was dis
posed 20 sacrifice American stocks In
fact if on assumes a belief in the pos
sibiIity OF political disturbances IN Eng
land as a result Of an impending strUs-
gle over iIle status Of the house OF
lords, or my other cause, IL is not IN
reasons bIe to assume also that certain
markets foreign 10 England, our own,
fer instance, might be bene1Jed by Ine
r7rfrcnaS s. of securities, OF q class V nlCil
would be free from their possible dis
turbances- But TO return 10 the main
thesis il IS wholly likely that traSlcdliy
sudden as was the death Of King Ed
ward the rTSt effects OF Il have alFealy
been felt to the fullest extent IN the Sc
Curity markets
If. IN connecting with such events,
there can be anything fortunate. Il IS
the intervention OF sunday VIII anOrd Z
full opportunity 20 the British investing
public for calm consideration OF the
entire situation Such consideration
ought 10 result in eliminating hysteria-
which IS the feature most feared IN 4
speculative market To the English
the loss Of a most popular sovereign
one who has ever stood firm for peace,
ana who vas wise and tactful in deal
Inz with political parties, even under all
the recent partisan bitterness which
seemed TO strike al the foundation Of
the old order Of things, IS undoubtedly
may serve the purpose OF bring about
a better ind Handing, modifying par
tisan bitterness and rendering the work
OF King George v IN governing his
country and in preserving its peace. a
task well within his ability to perform
Nothing 50 UnlJeS a family as a be
resvement, and as with the family, so
with the nation and Il may be that the
sudden blow that has fallen upon the
English viii ind partisan EnglIshmen
sinking their q nerenCeS. rallyinE 10 the
support Of the throne thus making tire
financial problems which have beset the
country the easier n solution
=
In advance Of any real test OF the
London market. i seems prOftIess 10
discuss the influence Of King Edward s
death In other countries and on other
exchanges but q hopeful view as TO the
course Of the immediate market seems
Amply JlSL-LleQr ana u IS important to
bear IN mind that the Bank Of England
IS IN an unusually strong position It's
last weekly statement, on Thursday.
showed an increase in bullion Of % 49,
n. and ratio Of reserve 20 liability OF
SIS per cent against 500 per cent in
the preceding week This powerful
showing, II is interesting to recall. is
the result OF The shipment OF S3i.016 600
American gold during the month OF
April Wall Street spectators were
very much disconnected by the gold sx-
port movement. but the gold was clearly
owing abroad as result OF our adverse
trade balance. and now that Il is in the
Bank Of England, II fortifies that inst
tuition at q critical time, and in fortffv-
ing the Bank Of England the entire
financial world Is the safer, and doubt
less feels the easier
The effect Of King Edwards death on
the rubber speculation viii be the fea-
ruTp Of the IOndSu market uUsOn which
prOba bly,, attention viii chiefly center in
the future For some time the rubber
mania has been regarded as the vuI-
nerabIe point Of the London market
and attention was directed 10 the stu
alton early in the week and before any
one had knowledge Of the Kings fatal
illness. by the failure Of the buyers in
the London auction market 10 bid within