The sun. [volume] (New York [N.Y.]) 1833-1916, 1904-09-11
GOSSIP or WALL STREET.


| appearance OF bank statement showing a
considerable further expansion OF loans. The
STOCK Exchange was suddenly flooded with
buying orders. which resulted. Intentionally
| or otherwise, In furious and competitive
bidding between brokers for the stocks The
movement was so Irresistible that an obstinate
surviving short interest was stampeded.
STOP orders on short contracts were executed
! III many instances as much as 1 per cent.
| ABOVE the prices at which they became opera
1--WE st. Paul. on which lot Of buying orders
abruptly conversed. advanced from 1853 to
| 1857 on single transa elton. and a minute
| iater $50 was being hysterically bid for the
STOCK. In this late trading Atohison. st. Paul,
Missouri Pacific. st. Paul preferred and Steel
preferred advanced to prices higher than any
previously reached on this movement. At
the closing the ticker, as had been the case on
friday. was four or Ave minutes behind the
| market. and after the sound of the gong had
put an end to trading the tape continued to
record transactions previously made at the
highest quotations Of the day. The total Of
transactions for the two hours of trading
exceeded half a million shares. an activity
greater than any previously recorded since
the advance began three months ago.
As to the character of the buying on which
prices advanced so violently in the last half
hour. the most Trustworthy opinion seemed
to be that 1t was Of highly manipulative
origin. Il was around the room good deal
in the last half hour. said, after the close. a
broker who Is not easily excited. and wher-
ever went found tremendous pool orders
! in process Of execution. They were widely
distributed. making the buying appear to
have had moro or less general origin But
whatever you may think of the character Of
| the buying 1t is certainly very strong for
the time being. 1t looks as II they are de-
termined to carry the movement further. :"
The foregoing Is a fairly representative esti-
mate Of the late buying movement yesterday
Nobody seemed to think Of regarding 1t other
| than rs demonstration on the part OF the
big speculative interests, and yet the success
attending 1t was thought by many to dis
| close further possibilities on the long side Of
the market. That the big buying orders
| put into the market In the last half hour were
Of the origin described seemed an inevitable
conclusion. 1t would be hard to believe that
| a spontaneous buying movement follow ed
| such a bank statement There was nothing
else on which It could have been based. 1t
began almost Immediately after the publica-
ton Of the weeks banking results.
Although sentiment in general was very
bullish at the close yesterday. enthusiastically
| 30 In many quarters. a feeling Of uneasness
was repofted by members on leaving the floor
The willing manner in which the bull con-
tingent took stocks in the last half hour was
not sufficiently reassuring to Offset certain
aspects Of the days highly speculative opera
tfons.
A very prominent operator who has lately
been moro active in the market than Is gen.
orally known. answering the comment upon
the market that II showed a remarkable ca
paoity for taking stocks. cyncally observed
What good is market that won't take
| stocks?"
None OF the prominent traders seems to
be clear as to what leadership should be
| recognized In the market. Up to a very
recent point the Hartman Pacihcs were the
stocks that gave the surest clue to immediate
trend Of values. but after a heavy selling
| movement in Union Pacific and Southern
| Pacific on Wednesday OF last week the &C
! tIvity left them abruptly and went into other
| stocks. Both have since been the most
| conspicuous laseards in the market It was
the programme yesterday to open the market
up. but the plan was only partially success
! full. Stocks like Southern Railway. American
| Locomotive. Erie. and Steel preferred were
strength. but Union Pacific opened down
y per cent. from Fridays closing. Both
Union Pacific and Southern Pacific closed
yesterday at fractional net declines. The
| tendency Of these stocks in the next few
days viii be watched with q good deal Of
l iutcTcbt. OuiCoo tHcy tdhcu uOlu Oh
! again many shrewd readers Of market Indica-
ticns will believe that through them notice
| Is being served that at least one powerful
| group Of financial interests has temporarily
| withdrawn.
| If the Western contingent Is pursuing
any large and desperate purpose In the market
It's leadership has been disguised to an extent
never before known. 1t might behoove
this crowd, Of course. to disclam extended
| operations There is no opinion worth re-
peating as to what position the Gates party
! does hold In the market. 1t Is declared one
day to have sold out and gone short. on
| another day It is said to be getting whip
| sawed between two positions. and again It
! Ia affirmed that stocks are being steadily
accumulated for hat account. The truth
! Is that nobody v 80 to tell what 1t Ia doing
| The most trus, ~orthy indication. perhaps.
| Is that Western loans have been increasing
! Of late rather rapidly.
in q per cent. money Market" said
an operator last week Of much experience.
~the tendency Of lenders 10 to make loans
that are defensible only on the ground that
! employment has to be found for the money
II a lot OF foolish loans have not been made
in Wall Street during the last few months
it will be the first time within my twenty
i've years Of observation that long con-
tinued 1 per cent. money market has not had
that result. Such loans are the drst to be
called when conditions change. The numer-
GUS pools operating In the stock market at
the present time have been generously accom-
modated with money for which there was
no other employment. That is only part
Of what I mean. Another thing to which
1t might be well TO call attention Is that when
the tide turns. as 1t will sooner or later. and
money Is In greater legitimate demand.
interest rates will advance, and as they ad-
vance the investment value OF securities
will decline"
There was scarcely any borrowing demand
for stocks in the loan department yesterday.
Foreign houses were the principal borrowers.
presumably In lieu OF certificates to arrive
from the other side. They were borrowers
of Union Pacific and Southern Pacific among
other stocks.
1t is the tendency Of speculative human
nature to overstay ones market. On
this advance, however. the original bulls
on various stocks and on the market as
whole have In a great many instances sold
out too soon. A least one pool In Reading
concluded It's operations on much lower
level. Instances almost without number