The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-10-21
GOSSIP or Wall STREET.

~ HlAthtb was WeukeAL IN the hAst uuu uOui
yesterday. and the answer, A recovery Is
the last thing we want. l know l am short.
] know you are short, and 1 know about every
second man In the room IL short, was strongly
expressive OF the speculative position
In considering the inquiry where all the
stock sold in the last two days came from
the lack OF speculative interest in the market
previous to the slump Ia a point Of great
importance, The public interest had shrunk
to very small proportions. and for that reason
the amount OF weakly held stock was not
large. The strong interests. understanding
the situation. hardly sold much. and the more
the matter Ia considered the more fOrcible
becomes the conclusion that there has been
a great deal Of selling by people who did not
own what they sold and who sooner or later
must buy back TO cover contracts
Traders whose knowledge OF intrinsic con-
ditions Ia not very deep have become be6rtsh
on the market on account. OF their failure to
recognize that the raising OF the London
bank rate is England's trouble and not ours.
They falsely ar Rle that the whole matter Is
the outcome Of the locking up OF funds In
the United States Treasury and the borrow
ing OF money abroad to meet the deficiency
thus created. They argue further that the
borrowing Of foreign money has impaired
the ability OF those who lent it to buy our
products. and that. taken altogether. this
country has been going entirely too fast. IN
matters OF n financial nature. This is Just
the sort OF view which the foreigners would
like TO present. and which. indeed. has been
set forth in the English papers consistently
for months past, but 1t Is wrong. very wrong.
what has actually happened is that New
York has been dischar ging It's foreign in
debtedness at q phenomenal rate and that
the inevitable outcome will be imports OF
gold on a heavy scale In payment for American
exports. In cotton alone there Is a fair reason
- .h~.n hv cha nanE ~ Fms
land over the maintenance OF its gold supply.
for there is at present loaded on vessels await
ing clearance a total OF fully 800 900 bales.
while an aggre gate OF 100000 bales was
shipped within the week. the money value OF
the combined totals being in the neiahbor-
hood OF S2s. 900, 900. With other lines OF eN-
ports running into very high figures the
making Of exchange is going on at an I'M
precedentedly rapid rate.
In contrast TO the action Of the traders
some OF the largest and most conservative
houses in the Street bought stocks on a scale
down and took heavy blocks during the raid
in the last few minutes. The catching OF
stop orders was one of the features Of the
slump at the close.
One effect Of the present uneasiness over
the action OF the Bank OF England will be TO
remove the probability OF an ante-election
shak edown. IL has been doubted for weeks
il there was really the making or a scare in the
Hearst candidacy for the GovernOrship OF
this State. and the fact that the weak element
which could be shaken out on a change in
the betting or anything which seemed TO
indicate a loss Of ground by MIR. Hughes
has already been eliminated tends to the i'm
provement Of the speculative position.
The sight OF the Bank OF England making
extraordinary efforts to prevent the flow of
gold to New York, with every appearance
that the measures taken will avail nothing.
Is enough TO encourage expectation that this
city will become In time the financial centre
Of the world. For many years 1t has been
the dream Of many people in Wall Street
that this might come to pass. but never before
did the outlook for realization seem as bright.
The test Of strength has come. and London,
after throwing down the gauntlet. seems
unable TO reclaim It. The tug OF war finds
New York the favorite in the betting. and the
valuable prize. the Available gold supply.
which England Ia trying to retain. must come
here because this city has brought the greater
strength TO the contest.
Years ago New York looked TO London to
make quotations on American stocks. Now
the London attitude is but little considered.
The eaReFness with which the quotations
from London were formerly scanned is no
longer manifested. and IL the foreigners slight
our stocks the fact is passed over with such
REMARKS AZ IL ~ u pNy b"Cg NV AON hhO" a
good thing when they see it," Every one
here knows there are good things in American
stocks. the prices OF which would be much
higher IL the shortage of the circulating
medium had not interfered with market
movements such as should have accom-
panied the rise in values. When gold comes
here, as it must come. and the pent UP force
Of values far in excess Of quoted prices Is
released. stocks, Il Is predicted. will move in a
, way not only to convince our English friends
, that everything is all right here. but TO attract
the attention. Of continental Europe more
strongly than 1t has ever been attracted
before.
II any single stock Gould be picked out as
the weakest on the list it would probably
he Reading. There was no special news
to account for the selling. and perhaps there
were reasons why bearish operations should
} not be covered too far in this stock. The
market was under the influence OF a matter
which caused heavy selling OF stocks by
English holders. but Reading could hardly
be called a favorite OF spectators on the other
side OF the Atlantic. On the contrary 1t was
the accumulation by some very strong in
terests here that had been the main factor
. in the stocks phenomenal advance, and 80
completely have these interests the entire
. sItuation in their control that they could,
= n 40 inclined, make the position Of the short
Interest very uncomfortable. II on the other
| manu- Nuty n W ~ Wv
. 40 as to influence the general market they
will nnd the traders working with them
: London not having much OF the stock cannot
r add appreciably TO the floating supply. al
: though some spectators over there have
: not hesItated to cast their lot with the short
interest. With the preponderance OF short
4 selling the position Of the stock at present Il
A full Of possibilities. N
= Transaction In Union Pacific reached
larger total than in any other stock with tn
n exception of Reading. and largely exceeded
n those in the latter on a par basis. A gooC
deal Of Union Pacific held by speculative
q interests for a rise was thrown over, anC
bearish operations we're conducted on a scat
which Induced many observers to believe
that large interests in the property. havinI
n sold stock on the rise above 100. were helpinI
2 along the decline with a view to getting bacl
N their lines. There Is no doubt, however
that a large proportion OF the selling con
sisted Of sales made purely for short account
q and that the technical position OF the stool