New-York tribune., 1907-08-13
STOCK MARKET OPERATIONS.

Stock market values broke from to points ,,
In the opening transactions and after a brief
rally again declined, going under the lowest OF
the first hour, with extreme Generalization re-
ported in all parts of the active list. Early
weakness brought forth some support from
banking houses. but it not effective in re-
storing confidence in speculative circles, did
It have any permanent result in shaping the
course OF values. Bear traders We're active all
over the room, commission houses were heavy
sellers of weakened margined accounts. while
investment liquidation also was noticed, selling
Of this character extending to the bond market,
including extensive liquidation In the INTERIOR
ough- metropolitan DIS which declined from the
opening at Ga to 3d. closing at 551A. The pre-
ferred stock lost net 612. and appeared
TO want to have any of the Electromagnetic
politan issues on their hands except at bargain
figures if such an expression may be used re-
garding these most unpopular securities De-
moralization in American issues in London,
heavy selling by foreign houses in the local
market and reports Of serious disturbance in
Berlin were factors that intensified the de-
pressed sentiment at this centre while the state
ments made in London that American finance
bills would not be discounted there also served
TO create uneasiness over our own and Londons
monetary position. Perhaps the enormous
liquidation the Stock Exchange will cure the
troubles Of the local situation. In banking cir
cles it was said there no evidence OF
strained conditions among the large financial in
terests, and expectation OF failures due to the
slump in prices. but many operators Were ner-
vous nevertheless over the outlook, and main
tanned that it would be impossible for some
firms TO maintain their position. Much interest
will be taken in clearing house sheets to-day,
and If all go through successfully the market
ought to enjoy rally.
Part No. of Commissioner Smiths investi-
cation of the Standard Oil Company was not
liked in the Street, the vigorous attitude toward
corporations continued to worry the financial
community. the foreign situation, including the
position OF affairs in Morocco. caused appre-
hension. the poor response TO the second offer
ing of the city bonds helped along the decline
and the telegraphers strike looked ugly enough
to bring joy to the hearts OF all true Wall Street
bears. It was maintained in some circles that
these factors would affect the Intrinsic worth
of securities, but the oldtime conservatives
OF the Street, while naturally feeling somewhat
worried over the severe decline in stocks. were
not inclined TO take the view that the influences
responsible for the weakness on the exchange
would extend to the business world. Stocks
sold in panics find buyers, and securities
are not going TO change into worthless paper.
In yesterdays trading some Of the largest
houses in the street had buying orders for first
class stocks the decline. and several firms an
nounced their business on the buying side was
better in character than at any time since
the March panic when prices were above those
now prevailing. Nearly all the active issues
sold under the level Of the March market and
presented attractive opportunities for outright
buyers. Speculation may carry values lower,
and If II does there will be further good buying
in representative shares. but such buying will
be more Of the investment sort than specu-
lative except that which comes from the shorts.
and il will not bring about sustained advance
in prices No sustained advance is expected.
and under current conditions such a movement
would be practically impossible. This column
sees nothing in the campaign against corpora
,ions that will depreciate the intrinsic value of
the shares in the long run. and though there
NAV he passing of uneasiness among
tin,id investors il does not believe this an OPP
nortune time to sell first class stocks and bonds.
one frightened banker said yesterday that the
administration and labor had combined TO drive
the CORPORATIONS out of business. but the chances
.ra the country's industries will continue to
,,,o,,e forward through the years to come.
6,,,. of-tovvn banks are Withdrawing their bal
o,,cee ar this centre as is usual at this period
of the wear but II is not unlikely the shipments
of currency to the interior will be offset in some
sure bv the selling in the stock market.
rriy,e and call money were firm yesterday, and
II, the foreign financial capitals money was
strong. with something approaching stringency
IN Berlin. The fact that London has refused to
discount our finance bills and is unable TO sell
"a FJe transfers reflects money market conditions
in the British market rather than loss OF con-
fdence abroad i'm American institutions, but wall
Street believes 20 the contrary-that is the
orerators who want 10 scare holders Of stocks
into liquidation. Bank conditions the world
over are not in favor of advancing prices on the
Stock Exchange, but they will improve under
the influence of liquidation in securities and |
q,,ietine down process among industries that !
have become over extended In their operations /
al time when the supply of capital has con-
tracted as result Of prosperity. Closing prices