Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-06-26
PUBLIC IN MARKET
Picking Up Stocks When They
Reach Bargain Prices.
STANDARD OIL CROWD HIT
Went Too Far on Bear Side Be.
cause of Crouch"
WORK OF CONGRESS PLEAsEs
Real Investing Public Expects Bet
ter Things as Result Of Railroad
and Other Legislation.
WORK OF CONGRESS PLEAsEs
BY W. G. Nicholas.


|
NEW YORK, June Is, 1910.
The stock market continued to develop
strength and broaden out. There is still
plenty of room for speculative expansion
and increased sales, but there is going on
steadily an absorption Of the seasoned
and dividend-paying issues for the in
vestment account, a demand which is
reducing the floating supplies and COM
| pelling buyers to mark up the bid price.
| On every little recession In prices stocks
are bought and taken out Of the mar
ket by the rich. well-to-do and thrifty
classes.
This Is because the market has been
what is described in street parlance as
! sold out" Liquidation on a very large
scale continued over from last year into
this, and we'll along into the spring.
This carried prices away down the line.
the declines in many instances rang
| ing from 25 to IS points, and averaging
for the whole list about 20 points For
been regaining lost ground. For sew
eral weeks before the turn took place
investment buying has been proceed
thousands Of people who were attract
| ed by the substantial dividend returns
on the investment
1t means something for the owners of
available deposits to be able to put
their money into sound stocks that will
yield to 6k per cent returns, stocks
for which prompt and immediate sale
| can be maze any business day or the
week.
Billions in the Banks.
Billions Of dollars lover $4,000. 000,00
in the state of New York alone in the
savings banks) are drawing only 3h
to per cent interest, and billions more
in trust companies get only per cent.
| while an equally large sum in the
national banks receive nothing In the
way Of returns. 1t is from these sources
that the money comes which has gone
will continue to find its way there until
prices move up TO level which ceases
to make the goods attractive. That can
hardly be before there has been a rise
make this all the more certain is that
all the great commercial countries OF
the world are running into period
The Bank OF england Is altogether like
~ to go through the summer months
with a IN per cent discount rate, Whiie
in New York indications are that potn
call and time money will be cheap until
the demand sets in for funds for crop
moving purposes. For weeks call money
in New York has not been above per
cent, and 1t Is reasonably Well assured
that after provision has been made Tor
the huge July disbursements the rate
will settle down to still lower inquire,
some think even below 2 per cent I1me
money can be borrowed in large amounts
for six and seven months at 70 412 per
cent Thus it is that with longtime
prospects of comfortable money ana
daily improving crop prospects invest
ors are feeling very confident that they
are making no mistake in taking over
securities around current quotations.
Legislation Inspires Confidence.
A further element Of very great i'm
portance in aiding in the restoration OF
confidence is the eleventh-hour action of
Congress in falling in behind the admi-
istration and enacting laws which will go
far to quiet political unrest. OF es-
pecial Importance ia the new railroad
law, which is increasingly impressing
the public with the fact that 1t is paving
the way for better relations between
shippers and transportation companies,
and that 1t will probably work out to
the enormous advantage of security hold
ers as well as the public In general. 1t
is now felt that the interstate commerce
commission will do the right thing, and
If the railroads can produce proof that
they are entitled to a moderate raise in
rates it will be given them; and also
that the people who pay in the increased
tax will be able to see that there is no
injustice in the advance.
The action of the meat packing asso-
Citations Of the west in giving voluntary
acquiescence to the proposed raise In
rates is not accepted, however, as con-
elusive that the great mass OF shippers
will be equally obliging at the start Off.
The action was impressive, however, as
far as 1t went, but inasmuch as that
particular class of big shippers will be
able to reimburse themselves either from
cattle raisers OF consumers, the move
was not felt to be representative Of the
great public, which, after all, pays the
freight. In fact, the offer from the
packers strikes a good many people as
possibly a return for favors to be grant
ed i'm some way not yet made plain.
In other words. even Wall street cannot |
rid itself of the idea that it may be
another case of the gift-bearing Greek, |
and more less suspicion attaches to
that sort Of thing. However, the whole
rates proposition promises to be settled |
amicably and without undue waste oil
time.
Cannot Kill the cxops.
If there is anything really worth while |
that can be used as an agency for de- |
preston in the next few months 1t is not |
very tangibly impressed upon the minds |
Of inestors. OF course, there may yet
be serious crop damage. out thus far the |