New-York tribune., 1907-01-31
Closing prices of active bonds dealt in. with
STOCK MARKET OPERATIONS.

Further liquidation representing the sale Of
speculative accounts carried in brokers offices
and aggressive pressure from the large bear ee
ment were responsible for lower prices in yes
teday's stock market. with considerable demoral-
ization in the movement OF values in the last
hour of trading when the heaviest selling was
reported. The expectation Of higher rates for
money rumors that certain firms were in fnan-
cial difficulties the failure Of the steel shares 10
respond TO the record breaking earnings for the
last quarter Of 1905 and the tiresome argument
that federal and state activity against law
breaking corporations will upset the Industrial
prosperity OF the country were advanced as rea-
sons for the decline and in the absence ~ real
factors affecting adversely the actual worth OF
securities they served the purpose OF the advo-
Gates of cheaper stock market values. The
larger interests. who are not worrying over the
future of the country quiet buyers al bot
torn figures. but the chief purchases came from
traders who tobk advantage OF the weakness 70
cover their short contracts. In the early deal
ings there was a brief period of strength and
UP TO the last two hours no serious weakness
developed. but in the final operations as in Tues
days market. the entire list declined rapidly
with the heaviest losses in Amalgamated Cop
per- American Smelling. Atchison. Canadian
Pacific. the 800" shares. 81. Paul Northwest
Erie. Great Northern. Pennsylvania Reading
Southern Pacific. Union Pacific and United
States Steel common In these issues losses
from the best prices OF the day ran from IL
per cent 70 per cent, while net declines in most
instances were nearly as great. On the curb
Chicago Subway broke a number of points and
certain interests who were hurt in that stock
sold their holdings OF 500 TO pay their losses
Most stocks look cheap.
The movement of currency from the interior
L.,
small. and apparently there is little prospect Of
a big gain II any. from this source in February
A large amount Of money is tied up In mercan-
tile and speculative undertakings outside OF New
York. and fits release in the near future is not
probable unless conditions should change 10 an
extent that would make wholesale liquidation
necessary, such as has been Witnessed on the
local Stock Exchange, and which evidently has
not yet run its course. In addition 20 the amount
OF funds locked up I'm the manner mentioned the
banks have suffered I'm their available cash sup
plies owing TO the prosperity which has made II
possible for the average man TO carry more
money in his pocket than In former years q fac
tor which on the surface may seem of little con-
sequence. but which when studied on the basis
of the number of people I'm the country. assumes
formidable proportions. There Is upward Of
s2o0oo0000 more money in the United States
than there was at this time a year ago hut
bank holdings do not show it. There are many
projects ahead which the financial institutions
will be called upon 10 finance. providing national
prosperity continues, but there is no apprehen-
sion in financial circles over the ability Of our
bankers TO take of all the legitimate re-
quirements of the situation. especially as there
indications that foreign capital will not re-
ject good propositions from this side despite all
the pessimistic talk in the foreign Journals on
the position OF affairs I'm the United States
That there has been some buying of America n.
railroad note issues by European bankers is re-
fected in the weakness I'm the foreign exchange
market. which yesterday declined 40 points
OF course. there is enough uncertainty over
money and enough aggressiveness on the part
OF the professional element on the Stock Ex-
change TO make purchases on margin extremeIv
dangerous. but there is nothing in the condition
affecting the intrinsic value OF American invest
ment, securities TO warrant the sale OF invest
ought 10 attract investment buying, and the fact
that brokers are receiving inquiries daily from
persons of substantial means regarding the pros
poets for . further weakening I'm prices on the
Exchange suggests the probability Of scoumulx-
ton OF issues that on or approaching a 8
per cent level by people who ha been holding
their funds I'm reserve for this opportunity From
the speculative point OF view il would seem as
IL there soon ought to be a sharp rally. at least
nasmnch the bear side is becoming too
crowded for safety The professional element
in Wall Street is not frightened by what IL
plesses 20 call the spectre OF the big stick