The Washington herald., 1912-04-04
WALL STREET NEWS
Traders Looking for a Reaction
We're Disappointed by Develop
ments of Yesterday.
b, THoMAs c. sHorwELL.

New York, April 2-Traders working
FOR a reaction were disappointed again
to-day. In spite of all their hard work
the list advanced impressively and some
specialties impulsively. II may dawn
on the traders some of these days that
they are not making the market, but
that It is under control Of the great body
of investors who have found their nerve
again. The country is on another con-
structive movement and the stock marke
viii not wait for the work to be fin
ished. Six months from now everybody
will be able to realize what a group Of
big men recognize now and what a very
few saw months ago.
This is not a sunshine movement, but
real recovery. Now is the time to
jump into debt as deep as possible. 1t
looks as IL the United States Steel Cor
poratlon intended to take advantage of
the opportunity, for II Is understood that
there is a total bond issue of $50. 0.0oO. 900
authorized by the directors on the Gary
rlant- A small lot Of these bonds was
sold a few days ago. The others may
be sold at any time. but that is no rea-
son for pessfmism. 1t only proves that
the great corporation is doing so much
business that il needs more working
capital The surplus capacity of the
steel mills will fade away just as the
copper surplus faded. Steel was slightly
higher at the close.
Copper metal had a slight reaction in
London and was dull here. The stocks
all felt 81 1t would be a bear argument
on Copper stocks to have the metal go
much higher. 1t is well known that the
accumulation of a surplus OF copper met
al was stopped by agreement of the pro-
ducers. The situation was so bad that
the conspiracy was ignored At Is
cents a pound there is an extremely
liberal profit in the production of cop
per. With the metal at that price, in an
honest market Copper shares are worth
more than they are selling for, because
they will be permitted to enjoy the liberal
profits indefinitely. But II the metal Is
forced much higher, they are worth less
than current prices, for the crusade that
will be started against the operators will
break up the agreement and send Copper
down for another long period. An i'm
mediate increase in the production of
copper metal is absolutely necessary, If
the price is to be held down and the
stocks are to be held up.
Chesapeake and Ohio and Norfolk and
Western gave good account of them
selves. The latter made a new high
record. They were helped by the in
creased business that has come to them
because of the coal strike abroad. Ches-
aDeake and Ohio needs a great deal OF
made plain that the late Edwin HawIey
was too liberal with Chesapeake ana
Ohio dividends.
Election of Barnard NJ. Baruch to the
Wabash board is believed by Wall street
10 mark the beginning OF a new railroad
career that will rival that Of L. II. Harri
man. He has been a remarkable sue
cess as an operator in the stock market
and has so conducted MS campaigns as
10 M interests
Canadian Pacific and American Can,
hich were named in this column Mon
n = as the two cheapest stocks on the
joined-hands to-day in a demonstra-
"a m: The former rose to 24lls on a re-
N'rt from Berlin that a land company
Z .ould be formed to take over the real
state holdings. This story has done
good speculative service in the past. al
though Sir Thomas Shaughnessy OF the
Canadian Pacific has always denied it.
The Canadian Pacific VIII not sell its
land except by the acre to the farmers.