The Washington herald., 1913-03-26
TRADERS MUCH
MORE Cheerful
Belief that Monetary Strain
Has Actually Ended the
Chief Reason.
SHORTS AID RECOVERY
New Low Day on Local Bonds-Some
Features of the Sit
uation.
SHORTS AID, RECOVERY
BY /. A. FLEMING.


Yesterday the sun shone on Wall
Street This is an important announce
ment. for the gloom has been so thick
there for months that it almost elm
mated sun rays. %
There were a number of reasons that
contributed to the happy change. happy
for the long depressed bulls and holders
of stock whose cup of misery has been
made to run over through the weary
period of wasting values.
II is just possible that the Union Pa
Cific-Southern Pacific management have
solved the puzzle that has bothered them
since the dissolution order. the accom-
plishment of the divorce to the salts
faction of all concerned. including the
State of California and the Attorney
General of the United States.
More plausible as a reason for the
strength, for the sharp rise in prac-
tically everything. with the leading rails.
industrials and equipment shares in the
van of the advance, was the belief thH'
the tight money period is thing of
the past for the near future: that Con-
gress may take up currency legislation
az the extra session: that London. Ber-
lin and Paris are in a happier financial
mood. and that the Bank of England
governors at their regular meeting to-
morrow. may reduce the discount rate,
which alone would be unequivoCal an
nouncement to the world that the Euro
pean strinGenCy is over.
Europe believes that the ending of
the Balkan war is but the matter Of a
few days. and this was another source
of strength.
crop damage has not been sounded as
vet. Floods. cloudbursts. &c, make for
good crops. and the bulls on the Street
Ill Sa1a h.. Hp n
aged while they are talking Of another
bumper crop year. All conditions from
the winter wheat belt are said to be
very favorable
The short Interest.
And in addition to this hull symposium.
there j. large short interest. mighty
doubtful of any real Improvement in con-
ditiOns with large profits and much con-
fdence. This short interest has been
given carte blanche TO sell stocks for
4 month. Confident in their position.
they moved slowly on the good news or
the day. but noticing the evidences of
good buying here and there they came in
freely in the last two hours and We're
responsible for moving values up to the
highest points Of the dav. where they
closed. and but a fraction of the short
interest has covered yet.
! Is. Central Leather l -. Erie l IS
Colorado Fuel = and Consolidated Gas
" -. canadian Pacific moved up l.,
Reading and St. Pau! 5-S Steel common
! l.. aud the entir" marNet in Keeping
With the strength in thr stocks named.
And the Close was decidedly strong.
Local stocks end Bonds.
1t has long been the habit Of Washing
Al T1.ar
ton - and Gas - as about the fair
marku, value.
Cc late the trend has hern toward
lGAcr valuation. but it makes progress
in rotrograd" slowly. The holders Of
thcsr bends have faith III them. they
know what is hack OF them, and that
they ar good. but to hold on they must
also he satisfied with the Yield. Some
few are not. This l. not the year when
Investors are overly Pleased with / -
. . per cent Investments. Few are salts
ned with the li-lG at the prices of a
fe,. wears ago. The changing trend OF
moneys worth making tho difference.
Whatever the cause. Traction Is made
a new low record when they sold at
los S.. As late as 1!-9 these bonds were
II Il. the highest record. From that
they touched IL l. il February, 1911.
ard have been comparatively steady,
Jos 81 is the actual low. The merits OF
the bonds have not been questioned; and
are not today.
The suggestion has been made that
SanSing investments have been respon-
sible for the weakening. but tlis theory
is not held by one of the leading invest
ment brokers of the city. And Yet il is
most natural that when one can increase
income by changing investments. when
brr1 4 :, IS-
I0GaIOi the Heals i'll. eStUent should he
switched. sven if long time prejudice in
favor Of the one h!sh-Srade bond should
exist. The dollar is the objective point
when covered with equal safety.
Gns Is Weak.
Another bond that has been in high
repute with the local investor of the
ultra-conservative type showed weakness.
and this has been going on for some
time. sales being made at 1nSal0S IA.
Railway is We're wanted at s. Ia Poto-
mac Consolidated IS sold at l0l
Bonds have been weakening during the
monetary stringency for some time. 1t
is not natural that bonds should move
freely in times of tight money. Bonds
are usually bought for investment of
surplus funds in time of monetary ease.
Railway Shares.
Evidently the advance in Railway COM
mon has brought out some stock but the
sellers have their price limits. Judged
by the action on Change yesterday there
We're quite n few selling orders at 81,
although probably more were above this
limit. Some was offered at 81: 100 shares
sold there. though 957-S was bid fire.
Quently, grazing the limits.
The preferred stock moved up labs on
light sales at S9Isasg 5-S
While Gas sold at 81 7-SaSS, there seemed
to be a number of buying orders around
ethe room, slightly under limits The
stock was offered at 81 at the close.
Commercial National Bank sold at 1877
ex-dividend. Bank of Washington, 43.
Di,fdends.
Dividends were declared yesterday of
. per cent quarterly on Commercial, 2
ner cent quarterly on American National