The Washington herald., 1913-12-23
WALL STREET. GOSSIP

London was large seller of Steel yes
terday
The big selling OF Canadian Pacific
came from Paris.
Public support does not. according to
the accepted Wall Street rule, form the
foundation for a rise in stocks after
they have reached the low point OF long
downward swing. The public usually
waits for this downward swing to carry
further, and when this does not come
to pass it places its orders for purchases
midway between the low levels and the
price to which stocks have been carried
on the upward action.
The New York Stock Exchange Is under
new management now and IL is pro-
gressive as well. Therefore, the optimists
| in the Street argue that with the tartfr
question better understood. a useful and
| workable currency bill enacted and the
antitrust policy mere definitely outlined
| the expectation of a big. active market
on the bull side before the end OF 1914
does not appear unreasonable. There
may be something in this, too.
When the stock exchange was investi-
gated by. the committee appointed by
Gov. Hughes important recommendations
were made regarding the method OF con-
| Quoting business. The governors OF the
exchange took practically no action look
ing to the adoption of those recommen-
dations.
The report was allowed to become a
| dead letter, and to that fact can be
| attributed many OF the recent woes OF
| the stock exchange. Had the recon-
mendations been adopted then. public
confidence might have been restored ana
the condition of extreme dullness which
prevailed OF late have been obviated.
Wall street believes the new currency
measure will mean a change in the sys-
tenn OF credits and an extensive credit
along new lines. chiefly commercial and
Industrial With commercial paper
most desirable asset, under the new law
merchants should experience little trou-
BILE in dispOsing Of their notes, and with
the ability to obtain funds for the pur-
pose should come orders for new supplies
Of goods and renewed activity in indus
trial lines.
Such renewed activity would call for
the unemployment Of labor recently laid
on. and this unemployment would supply
the funds for larger or more liberal pur-
chases by the workers themselves. The
outlook, therefore. is that there will be
a turn for the better late in January or
early in February. and that in the wake
Of this turn will come gradually all OF
those changes which make for a period
Of activity.
Lewis johnson & Co-The market holds
steady enough. but it lacks the snap of
either Friday or Saturday One reason
is that foreigners have been quite heavy
sellers. Evidently they want TO take ad-
vantage Of rally and are not banking on
any big rise. The government action in
the American Telephone and Telegraph
matter had a very good effect, although
as a side light it reflected again tine
anxiety OF the administration over pres
ent conditions. Getting the currency bill
out of the way is also helpful. although
the measure contains a good many de-
fects.
1t is felt, however. that II a good Fed
eral Reserve Board is appointed. the
law can work out successfully and its
worst features, perhaps, eliminated
later. The floor is haTpy at the renewed
activity, and it premises to be a bull
Christmas.
London came lower. Apparently they
don't care for our market. or possibly
it is because their own troubles are such
that are compelled TO sell in a market
which is less sensitive TO such pressure
than their own. In any event on cur ad-
vance they are selling all the time.
W. B. Hibbs & Co.-The renewed sharp
advance in stocks late in the afternoon
followed the rather general protit-taking
movement. which prevailed throughout
the forenoon. II was due to a fresh
outburst of large buying orders from
some of the largest market interests and
local operators in discOunting the greatly
improved prospects for general business
and finance from the passage of the new
currency bill. and the more conciliatory
attitude being displayed Dy the adminis-
tration toward general business.
Mercantile reports are now very bad
Those from The steel and iron trade CEN
ters could hardly be any worse. The
large laying off of labor by the steel
mills and electric plants and the accumu-
lation of stocks of yarLs and cotton
cloths at the textile central manufactur-
ing points, and the increase in idle
freight cars and decreased railroad earn
ings are all evidences of the heavy gen.
eral reaction in business that had been
progressing since early last fall The
sharp declines I'm general stock market
up TO a week or So ago had pretty we'll
discounted such conditions. Therefore
IL 10 DChCNCu lIlc IiSt al SROShs VI lIic ldSl
four days will not only check the slump
in general business but greatly improve
the prospects.
Hartman &c Co.-Bullish tactics should
continue The standard issues may
be brought on all recessions. according to
well-informed sources. The tendency
is for the bear element to climb,
but it is not considered likely
that a bear panic will be permitted.
The offerings of stocks are small.
The market turned in November. as We
see it, and the improvement has been
irregular readjustment since then. Cen
eral sentiment is better and confidence is
returning Union Pacific, Reading. Great
Northern, Southern Pacific, st. Paul,
Louisville and Nashville, Erie 1st, and
Northern Pacific continue to be favored
by high-class institutions as purchases
on all little recessions. Some indications
of speciaIties being taken up and ad-
vanced this week. are noted. We would
not climb for stocks that have been
under heavy liquidation recently, tor
mere of il may appear.
London prices show declines in the
stocks which were rushed up on short
coverings at the weekend, but the gen.
eraI list IS steady, and after an early
settlement of prices to the real level of
real demand We think better figures will
be shown. IT is not the policy of those
Z 81, 80