Bisbee daily review., 1908-09-23
UN[OADED
HOLDINGS;
DROP CAME
Recent Strong Reaction In
Stock Market Due to the
Purely Gambling Nature of
the Trading.
(By Henry Clews.)

NEW YORK, Sept.23.-The present
reaction of the market was not en-
tirely unexpected Prices had under
gone a prolonged and too violent an
advance. In the leading shares prac-
dcally all the panic losses had been
wiped out. and in many instances
prices were not only the highest since
May, 1907, but the highest on recoI q,
! and lad risen fully 20 to % points and
over in the first eight months of 1908.
The time, therefore. was ripe for a.
action, and only waited upon the turn
OF events. The big holders had been
quietly realizing, and while only par
tially successful in disposing of their
surplus holdings. apparently reeog-
nized that the advance had been
pushed as far as possible for the time
being. This change in attitude of the
speculative leaders was. in fact, quite
marked Unnecessary stress was laid
upon the political situation, ana
though there was nothing disturbing i'll
this respect still it suited some of the
leaders to take pessimistic political
views. probably because q bearisn
demonstration against stocks wouiu
check political apathy and be a good
market maneuver at the same time.
But quite apart from these motives
the market was unquestionably too
high; the advance has been too rapid
and had oyerdiscounted the return of
prosperity, especially as the latter MAJ.
not by any means equaled expectations.
In one very important respect hopes
ghave not been fully realized, and this
is In regard TO crops, the early esti-
mates of cotton, corn and wheat
having all been materially reduced by
crop deterioration. At one time Une
promise was for corn crop OF 2.726,-
i000,0 bushels and 730,000,O0O bush
els OF wheat. The last Government
reports, however, indicated yield oil
2, $50, oo0, 900 bushls of corn and only
,sses. eaa 900 bushels of wheat. Both
crops are likely to exceed last year
get a reduction of 10000, 900 bushels
in estimates of corn and 60.00O,0OO III
wheat must exert some effect upon
values in general. When grain ad
yances stocks often decline. The cot
ton crop has also suffered some reduc
ton in the earlier calculations OF yield
and the sharp decline in this great
staple, which is selling nearly sc below
last year. must compel modification
of the unreasonable optimism which
prevailed in some quarters. On th'
other hand, prices for wheat and corr
are profitable and likely TO be ~ea
sustained, since the worlds supply o
cereals is relatively short and there l
sure TO be a good foreign demand 70
all we have 10 spare. All this mean
high prices and prosperity TO TN
Western farmer, who will smile CON
placently as the Eastern consumer III
willingly pays high prices for nearl
all food products. The Southern plan
ar. however, is less favored, becaus
his crop is not likely to be as large a
expected; yet he will be compelled I
accept low prices owing to the dt
pressed condition OF the cotton indus
Try abroad and at home. Facts sue
as these cannot be ignored and wi
necessitate some discrimination in tn
purchase of stocks, Notwithstanding
that the money value of our crops d
a whole will be much larger than
year ago.
Another factor in checking the ris
In stocks was a turn in the none
market. Call loan rates have bee
slightly higher, and the demand Il
check the accumulation OF funds
this center. The strength OF foreig
exchange and rumors of gold expor
also had a slightly depressing effec
Nevertheless there is nothing in Il
monetary situation to cause uneas
ness. We could readily spare a fe
millions TO Europe to assist Russia
loan or any other legitimate tran
action; and a stiffening of local mon'
rates would really be beneficiaf Ia
discouraged excessive and unhealtl
speculation. The present great ca
in money Is chiefly due to business
ertia and must be considered sym
tom of debility rather than Of go
hath: so that dearer money, proyid
il resulted from better mercant
demand, is an end devoutly desir
inst now and would be far preferaf
To an abnormal ease which foste
nothing but dangerous initiation.
IL very significant that the Clear
House banks of tbs city now rep'
loans of s1.326.000, 900. There b