The Washington herald., 1907-06-16
WALL STREET NOTES
Brokers Sell Short Owing to
Troubles in Russia
PARIS NEWS IS UNFAvORABLE


Foreign Situation and the Fact tina
There Is No support Due to Do
nestle OutIook-Union Pacific an,
Reading Chief Points of Interest.
New York, June l5.-The continuance 0
liquidation on the Paris Bourse and o
selling for Paris account on every eX
change of the world on which stocks he'll
speculatively in France were dealt in, an,
the reports from St Petersburg that tn
Douma would be dissolved before night
made it inevitable that prices should de
cline on the New York Stock Exchang
yesterday
Everywhere It was admitted that tn
foreign news was of prime Importance
and the general disposition was TO re
gard the Russian situation as a serious
menace. The unfavorable features IL
the situation at home were disregarded
as the favorable ones had been for day,
past, and European affairs dominated
whatever little interest was taken in tn,
local securities market.
At first the traders seemed undecided
what to do IN the market Some o.
them covered a part Of their short line.
in the first hour, and then for a time ap.
peared 10 be all at sea as to what should
be their next course Of action. They
quickly made up their minds. however
when a report reached the street that
the dissolution of the Russian Douma
was imminent The immediate dissoiu
ton Of the Douma they said. meant a
bloody Sunday. and a bloody Sunday
would probably be followed by a black
Monday and SO they sold the market
short without further hesitation.
OF course it was a wholly professional
game where the players were willing n
stake something, even when they had
no means Of ascertainlng the exact facts,
because they felt reasonably certain that
II their anticipation proved % be wrong
their punishment would not be severe
The entire lack Of interest on the bull
side gave the bears q sense OF security,
and some Of the traders had no hesita-
ting IN saying that. even il everything IN
Russia passed of smoothly. there would
be no force on the side or rising prices
sufficient 20 make Il difficult for the
shorts 70 get back the stocks they had
sold.
\ rather unfayorable factor was the
withdrawal Of G225, 900 from the Bank Of
England for export 20 Egypt at a season
Of the year when the movement ought 20
be the other way the unusual demand
from that quarter being tie result Of the
failure az Alexandria and the disturbed
financial situation which that has pro-
iuced. Egyptians have been rather heav-
.ly immersed in speculation, and the ru-
m0rs Of further troubles 70 come were
not wholly discreditcG here OF on the
other side Of the Atlantic. There have
been times when speculation by Egyp-
.ians has made its influence quite dacpIv
bet on the New York Cotton Exchange
but In the present instance the stocks Of
home companies have been the subjects Of
The speculative operations that have dis
-urbed the financial situation in the
northeastern section Of Africa.
Union Pacific and Reading were the
particular points OK interest in to-day's
radtng, and while neither went quite as
ow as its lowest level Of the preceding
lay, both were at the close so little above
he lowest quotations Of the week that II
ooked as If the insiders must have soon
ent support again or allowed the stocks
o drop lower than before had not the
losing hour in1ervened TO cut short the
Dearish operations. In the first hour or
20 there was report that some Of the
argeSt and most active traders were test
ng the market for these two stocks TO see
il would not be possible "a make them
he leaders in rally of some proportions,
'ut judging from the results on the tape
looked as II the test only induced the
radiHg element TO return to' the short
side.
Bearing upon Che demand from Paris
or gold, the reduction in the gold hold
ngs Of the Bank If France. as compared
With last year at this time, is regarded
With interest The amount Of gold held
" the bank at the end of the past week
vas El0S,963. 80, against e1L6U,75l al the
time last year. the differ
nee being equivalent to about si5.000.000
he Bank Of Russia has largely increased
Is holdings Of gold. and the Bank Of
tally has made a considerable gain, but
n the other countries no very notable
hanges are shown. Some bankers think
he increase in the gold holdings OF the
'ank Of Russia IS significant as an lndi-
alton that preparations have been made
0 meet unusual contingencies.
Not every stock Jared as well as Union
'acifiC and Reading in retaining a frac-
Onal part Of its sally from the lowest
oint on Friday, for there were a number
hat declined to a lower level than they
ad before reached during the week. and
losed practically at the lowest figures.
ONE Of the weakest stocks were inactive
isues, and, indeed, outside Of the few IN
'hiCh the traders have been keeping I'D
Dme semblance Of activity, there was
cry little market.
The bank statement was a rather color
.ss document, and while its publication
as followed by an increase in the vol |
me of selling orders. this did not result
irectly from anything in the figures. but /
lerely meant that the bears felt more at
lse in selling on the account of the /
)reign situation when they found that