The Washington herald., 1910-05-13
WALL STREET NEWS
Prices Sag and Then Rally
to Higher Level.
NO BOOM IS PROSPECTIVE
Spectators Have Lost Who banked
Upon Uprising OF Securities, and
Many Are Now Beginning to Won
der IL Conditions at Present Give
Any Reliable FOrebOdinE.

New York. May 12-The reactionary
movement in stocks noticeable yesterday
afternoon made further progress during
the greater part Of the stock exchange
session to-day as was almost inevitable
under existing market conditions. These
are seemingly those of a narrow pro-
fessionaI trading affair. in which a pro-
nouneed movement in either direction is
soon checked. either by proht-taking
sales or by an uncovering Of buying
orders.
Up to the last two hours Of business
prices sagged without the application
OF any pressure bat solely as ap-
peared through the sales by small
spectators who were buyers three or
four days ago. After a fall OF from one
10 one and half points on the average
in the leading stocks. the market came
to a standstill. and then later on quickly
recovered practically all the previous de-
cline. some stocks. indeed. leaving of at
a higher level than that at which they
closed yesterday afternoon.
Regarded N striking Feature.
In the view Of many experienced per-
sons the sustained strength OF the mar
ket right at the present juncture is
really its most striking feature. In view
OF the fact that all through the week up
to the opening OF business to-day. sc
well as on last Saturday prices have
advanced continuously. II would not have
been at all surprising il to-day. for in
stance. values had suffered a counter
movement OF some considerable impor-
tance. But al a decline so trihing as
to be hardly observable realizing sales
ceased and a sharp recovery set in.
There IS very little doubt that among
professional spectators sentiment at the
moment Is hostile rather than favorable
10 the market. the sole ground for this
being that no decided boom I'm prices
seems TO be under way. But SPECTATORS
who have acted upon convictions Of this
sort lately have almost TO a man lost
money, and many Of them are now be-
ginning to wonder II there is not some
thing wrong with their theoretical cal
culations
II is possible that what this some
thing is may be in part at least that
the money market so far from lightning
as operators for the fall would like 10
see II is not only displaying symptoms Of
distinct ease. but is actually moving in
the direction OF greater ease in all the
worlds leading financial capitals
American Stocks I'm Demand.
IL has just been prominently brought TO
the notice Of all people interested in finan-
clal concerns that a foreign demand for
American investment securities has again
assumed such lively proportions that our
bankers have been able to negotiate the
sale Of between S1O0,OOO,OOO and $4,000 600
OF railway obligations Beyond this the
foreign money markets themselves for
what seem 20 be local reasons, largely, in
each particular case. but which all have
a direct relation TO the satisfactory prog
ress making by the English budget col
lections are all softening. To-day came
the bank or England's weekly returns
showing a proportion Of reserve To liabiH-
ties OF 54H per cent a high figure un-
heard OF before in modern times al this
season OF the year. The banks loans
were reduced 10 nearly SI0O0OO 600 even II
the banks holdings of gold coin and
bullion were also slightly diminished.
Until the English treasury has completed
its indrawing Of money through the col
lection OF internal revenue taxes. and
until business IN England once more re-
covers from the death OF the King. +,
would not be reasonable to look for
reduction in the Bank OF England's dis
count rate. but IT is obvious that such
reduction can only be postponed a little
time further