The Washington times., 1912-03-24

NEW YORK, March 24.--The advance
In stock prices, which was ushered in
with the resumption of business after
the Washington's Birthday holiday, con-
tinued during the week with practically =
no interruption. There were, to be sure
certain periods of irregularity and in
tervals of recession, but these did not
alter the markets chief characteristics,
which were increasing activity, strength
and general improvement. More than
three weeks of trading, upon an ascend
Ing scale OF prices, without a reaction
worthy OF the name. is unusual In Wall
Street, and so. toward the close OF the
week, one began to hear that the mar
ket was getting "toppy." and that re-
action was about due, but there were no
signs of one today.
1t would be idle to say that a manip-
ulative movement, continued success
fully over an interval of three weeks,
had not won some public support, for
the very fact, that realizing and profit
taking sales were reported, shows the
contrary to be the fact But II Is a
matter of general comment among
brokers that there Is no wide distribu-
tion of business. with a market ap-
parently full of buying orders the tran
sactions have been. and are stjll, con-
hned to very few houses. The firms
that have been able to get in on the
manipulation, while admitting that they
are doing more business than a couple
of weeks ago, are by no means over
enthusiastic concerning the perform
ance.
Concerted Buying.
1t is not a difficult matter to deter
mine when business is concentrated.
and when 1t is widely diversified upon
the exchange. As everyone knows,
there Is huge enunciator which takes
up the greater part of one wall of the
Stock Exchange. When a broker on the
moor receives an order or a message
from his office his number IS put up on
this board. Naturally continual watch
ing Tor their numerals has acquainted
the brokers' with the designating num-
bers OF conspicuous firms and also with
the frequency OF their appearance and
with the frequency OF the appearance of
others. BY careful observance, brokers
In time get very good idea of the
class and character of the trading; that
ID, whether 1t Is concentrated or diversi-
fed and the like.
The manipulative character of the
present movement has, OF course, been
apparent from the outset, and. accord
ing to brokers on the floor, the index
above referred to shows that this still
continues, but II also indicates an ex-
pansion of business. Active pool and
clique work was, perhaps. the most
striking feature OF the week. Thirty
or forty different issues, some of which
have been inactive for so long a time
that Wall Street had seemingly forgot
ten their existence, were taken up in
turn and galvanized. Apparently the
pool operators experienced very little
difficulty in advancing these specialties,
but the moment concerted buying was
withdrawn most of them faded away
into obscurity.
An Unusual Market.
Taking II all in all. the market has
really been one of the most peculiar
that men familiar with Wall Street for
a generation can recall. The movement
appeared so unreal and so poorly timed
at the outset that 1t was bitterly fought
by some very important professionals,
but 1t has gone on with the remorse-
lessness OF a steam roller, leveling and
crushing down all opposition. One usu-
ally associates an improving market
with favorable happenings. but this one
seems to have thrived on bad news. Not
that all developments have been un-
favorable by any manner of means, but
politically and industrially the situation
has been anything but that which one
would associate with bull movement.
But that is neither here nor there, for
the fact remains that prices are UP from
five to ten points or so in a surprisingly
short space of time. and they stay put
at the advances. Naturally one begins
TO hear stories of large short interest
still outstanding, and the gossips were
busy during the week with the name or
prominent commission house, which
was said to be short some three or four
hundred thousand shares of miscel-
laneous line. The upbidding of Ameri-
can smelling and Refining on Friday
was based entirely upon this report
or course, there Is no way of determin-
ing the truth of such rumor
Discussing the Short Interest.
Unuuestionably the house has been
very bullish on all the metal stocks
and 1t may still be short of large
line, but 1t may occur to YOU that 1t
is a rather dangerous situation. If any
considerable portion OF the advance Is
due to one group of spectators, driv-
ing another group into a corner, in
order TO force short covering. A Ori-
vate settlement on the part of the
shorts, arranged quietly over night,
would OF course deprive the stocks. Of
which the house was short, If 1t is short,
of a great sustaining element. How
ever, as already set forth there is no
way of proving matter of this kind,
and the report is mentioned here merely
because it played an important part In
the gossip an in one market maneuver
of the week
In addition to the specific Tumor men
toned, Wall Street again heard the un-
pleasant story, which is always circu-
lated on a recovery. after sharp break
or long continued decline, of many
brokers being short of their customers
stocks. Imagine that at one time II
was not an uncommon practice for
brokers to go short Of stocks which
they were carrying In their Offices, and
| suppose on other occasions of acute
money markets, that brokers have ac-
tually- sold customers stock or as the
sa wing is carried them in the Market"
with the expectation of reclaiming them
en- some expected decline. At least one
hears references to the practice so fire.
ouently that perhaps there may be
Ia sis for the stories. The story seems
20 have heen nut out now, however, to