The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1910-05-08

{
uCt, shares Of Tubber-prOduclnS com
pauies caught the popular fancy and ad-
vanced tremendously in what has been
described as Wild speculation orgy
New companies for the exploitation OF
rubber, many OF them mere prospects
and others visionary enterprises, sprang
premium before issuance, and, according
10 conservative English papers, dan
gerOus speculation IN mere bubble com
psnies has been in progress
So great has been the promotion craze
in London that in one week IN April
alone, new companies, with a capital
Of S55,600.G00. chiefly rubber were
launched on the market From January
TO Nay 1 the London nOtaLlOnS OF new
companies have reached the huge figure
Of S53U.U90.u00 as against S330svJJ,gJO in the
same four months last year and so, O99,-
Co in 1906 In fact It is said that never
in its financial history, has there been
such a craze for capitalization in Lon
don as during the present year 1910. and
the speculation craze in these SnareS,
particularly in those Of the rubber Cum
psnies, has been so great that one brOk-
CT declined 10 execute any orders for
an interval OF two weeks IN order that
he might catch up with his work 1t
seems reasonable 70 infer in Conse-
Cuence Of this that the real test OF the
London market viii come IN connection
with its speculation IN the rubber
shares
While irregular, the stock market I'D
10 Friday, when the serious character
Of the Kings Illness became known.
had shown upon the whole an lmprOv-
ing tendency This Cld not prevent
some rather severe declines in prices on
Monday and TueSd---r but there was
more OF bear selling and less Of hquida-
ton in the offerings than during the
rreCediEgs week. and some little aLLeD-
ton was paid 70 news developments Of
a favorable character, which was not
the case IN the preceding week II was
made quite apparent that the money
market was adjusting itself and though
call money on Monday ran UP 70 per
cent rates speedily eaSed on SatuI-
days bank statement made an excellent
showing. refecJlns some Pan Or ne I-I e
cent stock market EQuldauOn II 4 loan
reduction OF SZ3,45S,10J- The surplus
reserves increased S4,Juls5so, giving a 10
tai Of SI0,772s525 above legal require
meuts- The strengthening Of the re
serves was reflected in a slightly easier
tendency for call money IN the closing
days OF the week, and time money was
then reported as IN somewhat more Nd
Friday naturally changed the relaxing
tendency Of money somewhat
=
In this column week ago. n referring
to the COunLry'S adverse trade balaE-ceB
To the perpIexities that Il OCCaslOned,
and TO ne belief expressed by leading
bankers that II might De adjusted by an
automatic pressure, ! took occasion TO
and in considering the matter OF in
IeruztiouaI trade II IS not well 70 lose
sight Of the fact that the price depres-
sion in securities Of the best class niEn
grade bonds particularly, VIII not con-
tinue Indefinitely At some price Europe
wiz buy such securities. as she has al
ways done in the past when cur prices
were seriously depressed
Il now develops that the remark vas
prophetic The entire security market
changed on Thursday and prices reCov-
cred rapidly a. the short interest was
driven 10 cover, on Developments OF the
precise character indicated above name
y upon reports that heavy sales Of
bonds short term notes and city war
rants, had been negotiated abroad The
first rumOrS OF these transactions
reached the Street in an exaEzerat ed
form, UyeTSratinE the amount o. the
tranSa CtOins and creating the impress
had already been COnsummated, and il
must be said Of these reported sales Of
bonds abroad thai II has been inpOs-
sible u obtain dedEiJe statements as
70 amounts even I'D u the present tine
However, there Is no doubt that coD-
siderable amounts Of securities have al
ready been sold abroad. and a Conserva-
tive estimate places the total now under
negotiations at between sel. 0sr1. go and
$40, G00,O10. The most considerable Of
these transactions is in connection with
the St Pslu railroad, involving a sale
10 Paris bankers Of S30,001.01O 70 $4,000. 90
OF I per cent tfteen-vear debeurTrra
bonds Negotiations are also De0dinv
for the sale Of 10000 10 SO on "a
bonds OF the Cleveland. Cincinnati Chit
caso ana 81 Louis road, also IN Paris
ana among other transactions reno-rs5
as impending are sales Of BaItinrore and
o'n1O snort term notes. Missouri. Kansas
and 1eXas bonds and various others
announcements were vrer0a r7rr,sIv
made Is regrettabIe, but il does not
cnanSe the Importance of the deveIOr-
ment Leading bankers on Satur5av
expressed the opinion that all the ne
EOtlatIOns ROW reported vvo71I6 he
carried TO q successful Conclusion
though the death Of King Edward
might delay the termination of the
negotiations TO some extent 0F
course the sad development in Lon
COn deprived the speculative market
OF some OF the favorable influence Of
the reported bond sales. but the de-
velOpment Itself stands as one OF the
most important which has taken plac
IN & lOnS while, and, Of course the
more important at this time in COnse-
Quence Of cur adverse trade balance,
and the prospect OF a resumption of
sold exports It would be better for
rs as a nation If We were buying less
abroad, but since we are not so doing
Il VIII help considerably 10 have Eu-
rope buy our securities, even though
II be at concessions in price
=
Uncertainty, Of course, still sur
rounds the harvest outlook. and that
is likely to continue of and on
throughout the growing season. but
reports OF crop conditions are not now
all one way as they were the early
part of last week, and the extent Of
damage TO cotton and cereals by the
early Indictment weather seems to
have been exaggerated With the
general uptuTn in prices Of stocks on
Thursday, speculative sentiment was
uB1Ou btedly influenced for the better
and improved sentiment fingered in
the Street until practically the close
Of the trading interval, despite the
uncertainty of the situation caused BY
the developments in England. Posi-
bly, the fact that trade reports appear
20 be better, that railroad earnings
are making generally fine shOwinEs
anC that q sustained volume of bank
cieaTances reflect generally satisfac-
tory business, are responsible for this
better feeling.