New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-08-09
Financial
The Financial World.

i
\ gins and professional operations for the e.r
/ there seems to be no bottom TO anything -
as in the great boom. people stood arouua =,
| ticker and wondered when the top woula u
reached. so they stand now and wonder NJ
the bottom viii be struck Their fee8,.-
/ however. are somewhat different Two -
/ failures made the weeks record One ~
/ consequence; the other was dismissed v,s
| smile Of contempt tt had been expected A.,
/ Tor two weeks The Sharp & Bryan tan
| seems to be another addition to the list Or -
tins Of the deadly speciality. Blocked up u,.s
stun almost unstable in falling market. tb.-
went under. Their holdings OF VirEinia-Cbs-
/ ical appear 10 be the main cause OF their h.
/ doing. This company needed the assis,aaeA..
a hastily organized syndicate to meet u1a+,,-,,
/ obligations and IL shows that money is s-r
obtainable in the Street for emergency ope--
tons when such a syndicate could be a.
ganized short notice. and put I'D betvrs..
six and seven millions Possibly il would -
well for the creditors, who ought 10 have zo-,a
thing to say in the matter to look into the con,
panys organization and determine whether :.
| not they want officials holding responsible no
sitions to spend most of their time and enerrx
hanging over a ticker
The market rallied sharply on Tb1rel.,
after the failures. as it has after similar blows
Indeed Thursdays rally was so strong and ranf5
that it raised hopes that the worst was ova-
| hopes destined to be dashed when Frisav
brought dullness and weakening. and yesterda,
as bad a break any we have had. The mar
ket simply went TO pieces after the bank state
ment appeared, with the usual increase i,
loans. Last week the increase was accom-
panied by substantial increase in the surpu.
reserve; this week. there is decrease TbA
bear traders took il a sign that selling Vas
safe. and they raided everything vIclous
dash at Union Pacific carried it down with q.
rush to 654; but instantly the friends Of thu
property rushed in their buying orders and II
was back to IS even more rapidly than it went
down
Despite this support, however and Of sun
port given elsewhere. the market closed with a
bad look, and showing net losses for the week
OF considerable amount. About the only hopeful
sign in sight was the urgent demand at the
close to borrow stocks. You can lend shoe
strings, was the way some one expressed il
This told the extent of the short selling In
less this big borrowing is deceptive the market
has become oversold.
One interesting incident of Fridays operations
was battle royal between the bull pool in
Canadian Pacific and the bears. Apparently the
latter detected some cautious selling by the pool
above 40. and at that figure they made sudden
dash at the stock and Ia it down to 119 before
the other fellows were ready fo- them Then
started a fight which mOnopOlized the greater
part of the tape in the record OF the trans
actions. The bears forced the stock to IFS but
could not get it below that figure; the bulls put
it above 119 again and yesterday they had il
at 12O. while making the stock loan al Ia
premium Whether they can hold il there de-
ponds on their cash resources. At such figure
it is, of course out OF line with the rest of the
list; since, for example, it is quoted as high as
/ EnpT1= x-Iy mia hiCI,r
Canadian pays > This makes It a conspicuous
| target in the market.
A stock which has caused a good deal Of
| trouble in certain quarters is Realty References
was made here last week to the decline il had
had Since then the company has issued its
report. and the collapse in the price of the stock
was fully explained. A company which marks
/ up the valuation of its property and actually
| draws against the increase for dividend pur-
/ poses if it were much addition to cash in
| bank, is peculiar in it's ways. TO say the least.
1t is as much as if a man who valued his house
at $4,000 last year. and raised il To SJ0OOO
| this year. should thereupon draw on whatever
/ bank account he had as if $1OOOO in cash had
/ been added to it. He would not go far in that
/ line before he was in the same trouble the
/ Realty company is a careful analysis OF the
/ report appeared in the real estate column Of
/ the Evening Post; and a reading of IL leaves
/ on the mind an impression of very bad manage
/ ment IN this cOmpany-extravag ance lack OF
/ Judgment, imprOvident Investments OF course
the report settles the question of future divi-
dends, They>are out of sight
! While the showing made by it explains the
\ fall in this cOmpanys stock, on the other hand
we see stocks falling, and falling violently after
! the publication of report of the most favorable
character This was the case with the Union
/ Pacific No questions the absolute verify
/ of its showing, which was of earnings for the
year equal to about 10 per cent on the stock
| while the dividend paid is 4. Here is a reserve
| power equal TO all ordinary emergencies. The
| Street paid no attention to il whatever With
out word for or against. the stock was sold
down mercilessly, eliminating in the attack
yesterday which so sharply resisted
/ In truth. we are dealing very little with real
| values il the market now, any more than We
were dealing with them on the bull side two
years ago. We are dealing with frightened in
| vestOrs and crippled spectators II is the con-
dition of bank accounts rather than earnings OF
| properties, which is making this market. Pro-
| fessional operations for the fall of course have
| their share. and large share; but not larger
| than they have always had in times propitiOus
| for such operations. You must have first bear
| conditions before the bear trader can do effect
| i've work; and usually the most ferocious bear
| is sold out bull. AS things are half the stocks
on the list have gone away below what seemed
| possible three months ago even to people bear
| lshly inclined; and not few Of such have been
| caught by buying when they supposed the bottom
must have been reached. only 10 find they were
a very long way from the bottom.
We shall reach the end some time. of course