The Washington herald., 1911-05-05
WALL STREET NEWS
Sharp Decline in Prices
Marks Days Trading.
MEXICAN NEWS STARTS FALL
House of Representatives Investi-
cation Feared-Canadian Parlia-
vention Improbable-Steel Trade
Poor-Bonds Brings Good Prices.

New York. May IA renewal Of
profit-taking Of the sort witnessed on
Tuesday, accompanied with a brisk re-
sumption Of speculative selling for the
decline. both these movements coming
at q time when the position Of the
stock market was obviously somewhat
weakened by the seven days continued
advance which lately occurred, was the
cause Of q rather sharp decline to-day
in security prices.
OF course, pretexts for the fall were
found in yesterdays and to-day's news
dispatches regarding the state OF af-
fairs in Mexico. the resolutions direct
ing an investigation OF various corpo-
rations. that it is now clear will be
passed by the Democratic House Of
Representatives in Washington, and in
talk Of a postponement for a consider
able length Of time Of action in the
Canadian Parliament upon the reciproc-
fty measure; this last affair of stock
importance only as it affected or was
thought to affect the present valuation
Of Canadian Pacific stock which has ad-
vanced to a relatively high level within
short space of time.
The popular idea has been, and per-
haps with justice. that the Canadian
Pacific Railroad Company would profit
greatly under the actual operation of
the reciprocity agreement between Can
ada and this country that has been
proposed.
Railroad May Suffer.
Whether this is SO or not seems rath-
er vague; but at any rate the possibil-
ity that the enactment Of the reciproc-
ity programme might be indefinitely
postponed was substantially RESPONSE
Bile to-day for a break Of five points in
Canadian Pacific stock which undoubt-
edly exercised q sympathetic influence
on the general market
II may be said in this relation that
sharp market reactions in the Canadian
Pacific shares ought to surprise nobody,
IN view OF the violence Of the previous
rise in this security. In the course Of
the present year the quotation for the
stock has advanced from l95 3-s to YES
terday's high price Of 2as IA. without an
reaction at any time Of more
than four points.
AS regards the policy pursued by pro-
fessional spectators. just now these in
diViduals. or most Of them. are we'll
aware that the present market Is still
narrow. even If fundamental conditions
in 1t are making for the better and have
decidedly improved in the last fortnight.
They are, therefore, in the habit of
taking quick profits on their transactions,
and their liquidation to-day and tenta-
tive ventures for the fall were wholly
TO be expected.
There are few intelligent people who
really fear that a rise in the stock mar
ket, justified by economic conditions and
he normal forces Of trade and business,
VIII be kept down by Congressional in
committees holding desuItory
sessions at convenient resorts in tho sum-
eem likely to arise in the course of
fairs in Mexico.
Interventfon Impossible.
"1nterventionr by this country in Mex
co is substantially impossible, and even
+ 1t is possible, is not desired by any
political party or asked for by public
ointment.
That the steel trade is again in the
Jumps is, admitted and yet authorita-
ives reports to-day were to the effect |
hat in the last two or three days busi-
ness had again picked up in lively fash |
on.
While the stock market was declining |
Today higher prices were again almost |
shown in bonds and the ac-
.ivtty Of the bond market was greater |
han at any previous time in the year. |
Reasons for the increase buying Of bonds |
ire plain enough.
The enlargement Of purchases in the |
asst ten days has been specifically due to |
one particular cause that is perhaps not |
yet thoroughly appreciated by the gen.
,ral public. This is that trust companies |
md other similar institutions that have |
been paying comparatively high iI:ter-
st on deposits have made a consider
lble reduction in their interest rates.
This has naturally impelled depositors
n these trust companies, wheather indi-
-iduals' or financial institutions to in
-est their money in bonds and securities
4 like rank Of which an interest re-