The Washington times., 1912-08-04

NEW YORK, Aug. 4-At the outset
of the week In wall Street prices de-
c!ined, apathy was intensified and the
entire brokerage element seemed sunk
in dependency. On Tuesday, for in
stance, transactions fell away to 49,
900 shares, the smallest total for full
session on the Exchange, with but one
exception, during the entire year.
Again you heard the remark which has
been repeated very many times of late,
that wall Street was played out any
how" and after the close on Tuesday
a group of detected professionals who
had foregathered In thirst-quenchiny
resort not far from the Exchange to
compare notes, agreed that the best a
trader could now look for, was ian
even break" the idea Of profit from a
days business being eliminated en-
tirely.
AS Is often the case In the speculative
market, however. the low day marked
the turning point. On this occasion
the change came over night and was
brought aoout, In the first instance. by
a relatively favorable quarterly report
of the United States Steel Corporation.
The earnings, which were slightly In
excess OF s25.00O.000, were nearly 1900
900 above recent estimates. and this in.
fluenced short covering. Wednesdays
transactions were two and one-haif
times those of the preceding day, while
Thursdays total exceeded half mill
ION shares. With increased activity
came sharp recoveries and decided
Improvement in sentiment, which con-
tinued to the close Of the trading inter-
val, despite some easing in prices due
to realizing sales.
Market Was Professional.
That the market was highly profess
sional and that the upturn was due
chiefly to repurchases by the bear par
ty. in retiring their short commitments
plus the activities OF the bullish con-
tingent 20 bring about that result--will
not be denied. The betterment in SEN
timent, however, was none the less
genuine FOR that. and from the specu
lator's point of view the developments
of the interval furnished an excellent
basis for the more cheerful and MOI g
hopeful atmosphere which permea ted
the financial district. Whether the
community in general will place the
same optimistic Interpretation on some
Of the happenings that Wall Street has,
and whether some of the factors which
influenced short covering will influence
public buying. at this time. are still
matters of doubt.
In other words, there remains q skep-
tical element which regards the recovery
as nothing more than a change in a
professional market, such as have oc-
CURED repeatedly In the last six or
eight months. While looking for this
to proceed somewhat further as q re-
suit of the highly satisfactory crop
outlook, the improvement In general
business and the near proximity Of the
adjournment of Congress, these doubt
ing Thomases do not subscribe to the
opinion that the movement will be long
continued or Is likely to merge into
general public market. They give as
among their reasons that the buying
does not appear to emanate from the
right people," the banking interests; |;
that political uncertainties will render
confident speculative operations impos-
sible, and that the demands on the
money market will be such, arising
from crop moving and business re-
uuirements as to leave little or no sur
plus for a sustained bull movement in
stocks.
Future Money Market.
1t is the money situation which. in
the opinion of the conservative banking
element, is likely to offer the greatest
impediment to long continued or ex-
tensive improvement in Wall Street.
There have been occasions, of course.
when high money, even exorbitant
rates, seemed powerless to check a
speculative movement. but these have
only been when stock market move
ments had gained great headway or
when powerful interests were extensive
ly committed and were compelled to
carry prices over a temporary squeeze
or over some transitory distance. At