The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1910-05-06
WALL STREET NEWS
Bond Sales to Foreigners
Have Favorable Effect.
STERLING EXCHANGE BREAKS
Purchase OF stock I'm Open Market
for English and French Account
Probably Responsible for This.
Stock Market Closes ut High Level
for the Day-Debenture Bonds Sold.

New York, May 5.-To-day the feature
of stock exchange business was, once
more. the favorable effect upon sentiment
exercised by the heavy recent bond sales
20 foreigners, opening prices OF stocks
were in nearly all instances at consid-
cradle advances over those of yesterday.
A receding movement soon set in. how
ever. owing primarily TO natural profit
taking after the sharp recovery in the
market. and TO n moderate amount Of
renewed speculative operations for the
fall; and. secondly. TO some slight disap-
pointment on the part Of Wall street
proper over the fact that full and official
details OF the bonds taken by Europe
were not yet forthcoming.
Various reasons were ascribed for this.
Of which the chief was that negotiations
In such matters. with Paris bankers espe-
cially have 10 be conducted with extreme
caution inasmuch as II IS the custom not
20 regard such transactions as settled
until the last official action concerning
them has been consUmmated
Decline in Sterling.
Bankers also said that the break in the
sterling exchange market seemed not 10
be due to actual offerings Of bills drawn
against these bond sales. but to specu-
lative selling Of exchange in expectation
that the sales would indeed take place.
II was generally admitted. nevertheless
that a good share Of responsibility for
the decline in exchange was due not "a
bond transactions at all, but TO the very
large purchases Of stocks in the open
market for English and French account
In the course Of the last four or five days
II, as is commonly estimated. these pur-
chases have run into the neighborhood OF
100000 shares it would seem as if very
little speculative short selling of exchange
need TO be called into being 10 account
FOR the course OF the sterling market.
The reaction in the security market
progressed until the beginning Of the last
hour Of business. and il maybe was as
sisted to some extent by a further SHARP
recovery in grain prices. In the after.
noon, however. the dullness. accompa-
MED, If anything. with the development,
OF a slight sagginE tendency in the stock
market, entirely changed
Debenture Bonds Sold.
William Rockefeller authorized a state.
ment that the Chicago. Milwaukee and
st. Paul Railroad Company had, indeed
sold $5oOO0OO0 of debenture bonds in
Paris. although the transaction was not
as yet closed by the signing Of the pa
pers. This. accompanied as IL was by
unofficial statements made by competen,
authorities, as to the progress Of ne
gotiations in other directions, bringing
the total amount of prospective sales OF
securities fully up to yesterdays esti-
mates, was universally and very properly
taken as a confirmation Of yesterday
rumOrs on the subject, and prices
throughout the market rose rapidly until
the end Of the stock exchange session
closing at the highest level Of the DAY
and at net gains, running between / ant
points I'm the leading issues.
Qualification over this announcement
was enhanced by the fact that the new
st. Paul bonds are debenture bonds. anC
not convertible issues as was formerly
rumored. and efforts TO stop the advanc
ing movement in the stock market in IN,
shape Of stories that the bonds had beer
sold at a high interest bearing rate. quit,
failed Of their purpose. 1t may be authori
tatively stated that the interest TO b,
drawn by the bonds will not be at
high rate.