The Washington times., 1911-01-08

NEW YORK, Jan. S.-The first busi-
ness week of the new year In wall
Street was characterized by decided
Improvement in bonds and investments.
On the exchange, to be sure, there was
much in the bond dealings that sug-
gested manipulation. but the movement
there was confined chiefly to speculative
descriptions, and does not In the slight
est detract from tho very much better
business in well secured high-grade IN
vestment securities, reported by bank
ing houses and bond dealers. y WE'LL
sustained inquiry, both on the part OF
institutions and individual investors, de-
yeloped, and several large transactions
were concluded.
or course, the real test of the invest
ment demand will come when the new
issues are offered in the market. Tor
that will determine both the absorb
ing power of the country and the terms
NJ the new corporation borrowing, ana
il has a bearing also upon industrial re-
cuperation. However. the speedy de-
veIonment of investment buying, imme-
diately upon the turn OF the new year.
was a matter of encouragement 10
banking interests. Without question: II
constituted the most important ue-
veIopment of Wall Streets business
week and furnished the basis for some
Improvement in speculative sentiment
Stocks Increasingly Active.
With the improvement in the bond d.
vision as a basis, came a moderate re-
vivaI in professional activity in stocks.
In this quarter the price' movement
while showing Improvement on the
whole, was irregular, due to some profit
taking on the advance and some selling
for foreign account. On the announce
ment OF the Carnegie Trust Company
failure stocks declined. but they raj
lied sharply, and the list as "ioio
advanced. According TO the conlnlls-
sion house brokers. there was very hltie'
II any, enlargement of outside buying.
The character of the trading was quite
clearly indicated by the conveyance OF
activity on relatively few stocks. hul
there was nothing that betokened hqui-
dation. and the traders movement III
huenced short covering, which ac-
counted for most of the advance.
whether the present demonstration Is
Iikely 10 develop into more important
speculative movement, such as was GRE
,+o5 nv sheer force of manipulation IN
october is. Of course, the chief point
NJ interest in Wall Street today. Con-
corning the outcome, opinion Is "luei5
divided. and brokers, II must pe au-
rnItted. have become Increasingly tinilu
In recent months, either in participating
themselves or in urging their customers
"a ioin in a manipulative movement. IN
fact they encounter considerable uth-
cuIty now in arousing customer III
terest In the market. probably because
many recent tips" have gone wronS'
and customers are too few to FISK the
loss of a single individual.
Various Market Factors.
r,, In,nnovtng bond market, the relax
ing money market. and the existent
~ ratr-sized short interest, are the
features upon which the traders VINO
are committed to higher prices oase
.ba,r hone of improvement. Against thls
ra tho long array of disturbing ldctots
which have been enumerated so otIen
,ba+ one fairly sickens Of mentioning
o.. d,so,,ieted railway situation, the III
s,,s+-,oI cases in the Supreme Court the
,,rsa+isfactory conditions in the IRON
and steel industry, the uncertainty VI
IN. induttrial outlook, and various ot.St
the inu SP the same general character.
Nybatber the. speculative market can
h-.ak free from these influences "nlCl
have controlled the situation 1or 50 roS
% tinne-practicalIy a full years 'Ie
question at issue. The improvement III -,
the Investment market, II Is heu, hsnLers
maintain that bonds are improNlns
inTgeIv because the outlook elsewhere
Including the stock market, Is So S, ulI
certain and unsatisfactory as 70 p,,t
courage operations In that quarle,. p, d.
IN occa sions, the improvement IN one
Str,sSon of the market does lmpart
strength to the other, and reiaA.e .
,,oonay Is always a sustaining elelieiit. !;
II NAV not stimulate actVlly, ~
makes stocks look cheap by coLipai POI ,oSr,' On
when Judged by interest rates s;a.;Sards a
come Weld: and this, unless olE'ue"u0
ore Teduced, checks liquidation. -a
Speculative and Investment Sentiment
While the weight Of Wall stree'
opinion is against the likelihood OF
bull movement or anything approHihal-
ing one at the present ume' many
brokers are inclined to the beifer tha'
stocks may work higher, but rather as
result Of technical market conoltions
than anything else. In this conneftlon
one hears a great deal Of the necessity
of changing the present sentiment 'ano
of shaking the Street out OF Its despon,
dency. which Is usually accomplished
through an upbidding Of prices. Ere
U,ent reference is made also to the Ia
n1,Iiar speculative paradox that Wher
ali Wall Street is beSrish, stocks ad'
This latter. however. applies moT'
| narticuIarly to the speculative element
which is certainly not overbu;denee
with optimism. In banking clrcles' a.
already stated, a better feeling has peei
engendered by the Improvement IN th'
inyestment demand, and bankers Wn'
take a broad view of things, appear U
be more hopefully inclined as to the IN
dustrial outlook. In respect to TINS
while not ignoring the serious natlona
| problems, which seem destined to re
strict activity, one finds growing sen
| timent among men whose opinions
count for something, to look upon pusl
ness conservatism as proper prepara
tion for the return of complete natlona
activity. &,
No Impediment to Readjustment.
No disposition whatsoever is noted OF
the part of business interests to repea
the performances of the SUNSHINE