The Washington herald., 1910-06-27
WALL STREET NEWS
Cheap Money Is Best Feature
of Present Outlook.
LONDON RESERVES ARE HEAVY
Congress Has Left Political situa-
ton ia More Pleasing state Than
II Was a Couple Of Months Ago.
Railroads May Get Permission 20
Increase Freight Rates.

New York, June 2e.-During the fore
part OF last week prices Of stocks backed
and filed in very much the same man.
ner as they had been doing for some
time previously. In the latter part Of
the week a declining movement set in.
caused ostensibly by the development Of
a crop scare in the spring wheat section.
The fall in the market seemed to many
observers rather more than was justified
by the character OF the agricultural
news. and the truth Is that the crop dam
age stories revealed a somewhat weaker
technical position OF the speculative stock
market itself
At the present time the strongest sus-
tanning influence here Is the presence OF
cheap money and the prospect that this
will continue until at least the crop nov
ing period of the year. Money is low
In price not only here, but in England
and everywhere else. The reserves Of
the Bank OF England are so mounting up
that although the directors OF the insti-
tuition would unquestionably like. II they
could, to keep their minimum discount
rate at per cent until the fail months
are over, yet the plethora Of funds Is
attaining such proportions that it is
practically certain that a reduction TO 215
per cent must be made within a short
time.
In England, too. financial sentiment
has been encouraged by the strong move
ment for compromise on political ques-
tons there between the leaders, which
Is leading to a belief that the bitterly
discussed project of limiting the veto
power Of the House Of Lords will be
allowed to lapse for a year. IN England,
as in France and Germany, business
conditions are good, and people there are
plainly inclined 20 buy American stocks
and bonds.
Congress Resume.
Congress has adjourned leaving thu
general political situation. adjudged ir
the light of possibilities at the fall cleo
tons, in a far more pleasant state thar
was the case a couple Of months since
The railroad rate bin IS already a thing
OF the past. and, as has before been EN-
phasized in this column. the disposition
both in the railway world and in Wal
street is TO consider the probable results
Of the operation Of the new law with
/ cheerfulness.
It is pointed out that the effect OF TIT
Hepburn law, a measure which was re
garded with great fear at first by railwa!
people, has been. Ia part, at least, fo
good, in that II has served the great pur
pose OF preventing rate cutting. an eyi
that used TO be one OF the greatest from
which the railway companies OF the coun
I try suffered. The heavy expense TO whicl
In former days the railways were put Il
the shape Of free transportation OF pas
sengers and Of costly favors extended t
/ shippers has also ceased. Moreover.
appears TO be more or less openly ad
mitted by the government authorities an
particularly the members of the Inter
state Commerce Commission that III
government must accept a large shar
OF the responsibility for the recent In
crease IN railway expenditures and I
lbound to countenance a corresponding ad
vance in railway freight tsrifs.. tn
nation has compelled the railways en-
gagged IN interstate commerce 20 reduc
the hours Of labor OF their men, to instal
costly devices OF train operation, an
70 render minute financial accounts Q
railway service, In way involving
large outlay OF money. For this and 70
the large increase In the pay of employe
granted, the railways must be compeu
stated.