The Washington times., 1911-11-19


tributive and proft-taking sales, which
characterized the stock market toward
the close Of the preceding interval. re-
suited In irregular movements and a
generally lower price level at the out
set OF the past week. Although from
the extreme high point to which active
tracing Issues were advanced on the
approval Of the American Tobacco Com
panys reorganization plan by the CIR
cult court. many standard shares by
Wednesday showed declines Of from Q
to points, the rece session was an Or
derly performance, and the general list
displayed no real weakness at any time
In fact, the market in the first half
Of the week. acted ir q manner which
went far toward confirming the theory
Of distributive selling. and the declines
seemed to be little more than a re-
flecton o. a slow digestive process that
usually follows considerable unload
ing OF long stock.
With Thursday there came a change
In the program. Prices hardened all
along the line and then recovered under
the leadership of the anthracite coalers
and Union Pacific, the former on widely
circulated runors of aggregation or
property" and melons" and the latter
on the publication of a favorable an
nual report, which showed 1876 Der cent
earned on the common stock for the
year ended June 30, last. Thursdays
rally developed into an even more pro-
nounced Improvement on Friday, and
though prices were slightly irregular
Saturday, the majority OF issues leave
OF about where they we're a week ago
Although the net results Of the interval
are practically nil SO far as sharp ad-
Vances are concerned. 1t is something
to have recovered lost ground, and
speculative Wall Street is gratified over
the outcome.
Long and Short Pull"
1t would seem as though the financial
district. at least that part of II that
INDUCES in speculative and semi-specu-
iative operations. had divided at The
present time into two rather we'll
defined groups The cne trading for
what Is described as the short pulI'-
rather indefinite interval of a few
weeks or so. appears to be hopefully.
even bullishly. disposed, and one hears
them asserting belief that while there
Is little or no likelihood Of a sustained
brn market that stocks can he bought
on reactions: the other faction, which
embraces men Of gi ieater Importance In
the Street, who usually operate for
what Is known as 1.-The long pnll,', pro-
fess to see nothing encouraging in the
outlook. or. at least. nothing sufficiently
encouraging to induce them to purchase
stocks at this Zine.
In consequence Of this division of mr.
: ties one finds some highly confiictinu
opinions In Wall Street at the present
time, Tor the representatives OF one Inn
6eprasssd 6eptans interest appear to be as much
time In the last six months; on the
other hand, one finds a very much bet
ter sentiment among the professional
Traders. Later on, when Congress gets
going, they admit there is likely to be
unsettlement enough. but they argue
that Congress cannot get under way
the meanwhile they have taken adyan-
| tage of the favorable outcome of the
Tobacco plan, prevailing easy money,
list. to work for higher prices.
Stocks Professional; Bonds Better.
That the dealings of the week were
very largely Of a professional order ad-
mits of no question. Aside from a few
| firms. about a dozen in number, COM
mission houses reported little or no en-
largement of business. and the bulk OF
the transactions, as for a long timo
| past. were limited to about a half
|
Reading, Union Pacific, and United
States Steel were the most conspicuous
| 1t would be very strange public. in
deed II one was crowding into the mar
| ket. which would concentrate nearly 50
| per cent of its business on four issues
and pick out those issues. too, which,
for very nearly two years, have been al
most the sole playthings Of the profess
sional element Naturally dispassion-
| ate observer Of the Wall Street game
becomes somewhat skeptical over re-
ports of largely increased public buying.
when he hears complaints of inactivity
! from the majority of brokerage houses
| and when he observes the bulk Of the
| transactions confined to a mere handful
| Of stocks
| In the bond and investment division
| one does find some real improvement,
and leading first-hand bankers report an
increasing disposition on the part OF
yet, the bulk of the bond buying has
| been that of institutions. This Is clearly
reflective Of the prevailing low rates OF
money and grows out Of desire Of tho
| institutions to keep their funds en-
| ployed. The expansion of personal in
vestment has been OF very moderate
proportions, but. naturally. this is ex-
pected to, show some increase as the
time for the anticipated reinvestment OF
| money. to be disbursed around January
l, draws closer to hand. Always, at
cheap, shrewd investors. trustees of in
stitutions and large estates, who must
keep their funds employed, begin to
shop around for bonds, in order to avoid
| the advance in prices which usually
| follows when miscellaneous buyers come
| into the market The investment di-
vision is feeling little of this demand
| already.
Encouraged By Roosevelt.
There was very little in the way of
actual news during the week having a
direct bearing upon values. Without
| question the most discussed feature
was President Roosevelt's contribution
to the industrial trust question, con-
tanned in his editorial in the Outlook,
in which he denied that he was misled
by Judge Gary and Mr. Frick in the
matter of the acquisition of the Tennes-
see Coal and Iron Company by the Unit
ed States Steel Corporation. Mr.. Roose-
welt also pointed out that the approval
! by the circuit court of the American To-
bacco Company's plan of reorganization
amounted to a miscarriage of justice,
| and he criticised the Taft Administra-
ton for its policy toward the industrial
| trusts. Quite naturally very impor-
tant element in Wall Street that has
held for months that the Sherman anti