Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-10-11
Heavy Buying of Securities
for Foreign Account
STOCK FEATURE TODAY
FAIRLY GENERAL AND EXTEN
sIvE RISE IN PRICES.
I.ondon's Strong Disposition Toward
Local Market Practically Shaped
Early Speculative Sentiment.
sneciul nlsnntch tc The Star.

specinl Dispatch to The Star.
NEW YORK October 1.-THE main fac
tor In a fairly general and extensive rise
I'm prices ia the stock market during the
morning session was the Unexpectedly
heavy buying of securities here for foreign
account Previous to the opening of bust
ness on the local stock exchange 1t was
observed that the London stock market was
displaying a very firm tone, with American
stocks quoted in some instances as much
as one point above parity. with New York
quotations closing figures of yesterday.
As the local market did not measure up
In the early transactions fully to the ad-
vances reported from London, the opportu-
nifty was presented for profitable arbitrage
trans ctions, and the purchases OF this
character were estimated at upward OF 40
900 shares.
London's disposition toward the local
market was in fact sufficiently pronounced
as practically to shape early speculative
sentiment and 70 cause the floor traders TO
espouse the bull side of the account.
In the absence of any considerable Hqui-
dalton, save that representing occasional
profit realizing sales, it was only natural
that prices should advance quite rapidly, as
they did during the period in which the
foreign buying under way. Upon its
termination. near the noon hour, the mar
ket lost much of the animation 1t had
shown previously, some stocks reacting
sharply. while the whole list took on avery
irregular appearance.
Large Buying Unexplained.
There was no explanation of the large
foreign buying in this market apart from
a further dimnution in anxiety in London
with respect to the monetary situation, to-
gether with the disclosure at the fortnightly
settlement of the existence of a fair-sized
short interest in the American department.
The local stock market was, however,
quick to discover other reasons for the
change in the markets tone around midday
aside from the technical matters referred to.
For one thing, the days money market
Showed decidedly firmer tendencies, for
which there appeared to be no direct ex-
PLANTATION. Up to this morning the banks
had lost to the subtreasury since last Fri
day only S674000, and by reason of some
specially heavy treasury disbursements on
various accounts the local subtreasury was
a debtor at today's clearing house settle
ment Of nearly 81, 800, 900.
Sterling exchange was again steady, de-
spite the heavy arbitrage purchases of Sc
curiues. Still another influence in the re-
action of the afternoon was the address
delivered before the bankers convention at
Washington by the vice president of a
large local national bank.
Note Of Warning.
On a previous occasion three years ago
mote of warning" with regard to the stock
market situation was sounded by the same
dnancier, and his remarks at that time at
tracted widespread attention. and in point
Of time. at least, marked the opening of
the long period of liquidation which ran
well-nigh through the following year. 1t
Is hardly necessary to say that in view of
the position occupied by the speaker, and
his financial connections in general Wall
street was disposed TO draw conclusions
from his utterances which extended far
beyond the letter of his address
That certain large capitalistic interests
who. are by no means unfamiliar with the
daily course of affairs in the stock market
have been opposed TO an outburst of specu-
lative enthusiasm at this time is not news
10 the better informed classes of the Wall
street community even If today's averment
in this respect did appear TO take the stock
market by surprise.
Notwithstanding the present general level
Of the stock market, however 1t would GER
tainly seem TO be open to serious question
whether conditions at large relating to the
market correspond at all closely to those
existing in 1902. 1t could not be truthfully
asserted for moment that the speculative
situation is by any means as extended as
IT was then, nor is the market structure
overweighted with the huge burden of I'M
digested securities as at that time.