Omaha daily bee., 1908-10-13
NEW YORK STOCKS AND BONDS
Price Level Adjusts Itself spasmOdi-
oally to Better Outlook Abroad
UNCOVERED BEARS CAUGHT
Buying from This source Causes Rise
in Values and Revision of Esti-
mate of Foreign sales
Causes Rise.

NEW YORK, Oct. 12.-The price level in
the New York stock market adjusted itself
almost spasmodlcally 10 the better outlook
today for peaceful settlement OF the near
eastern question in European politics. So
suddenly was the change effected that
uncovered bears had very little chance to
meet their requirements left over from
short sales last week. Demand from this
element in the speculation was conscious
in the arbitrage operations for London ac-
count, where a fortnightly Stock exchange
settlement is imminent. The extent OF
the foreign bear account revealed in
duced some revision OF last weeks views
of the extent of the actual liquidation for
foreign account precipitated by the political
crisis.
The relaxation of the war scare was effec-
tive in all mediums of the financial and
commercial markets. Wheat declined, al
though with some new factors. Exchange
rates ran off In continuation Of the move
ment already perceptible on Saturday and
the likelihood Of good exports at present
seemed much diminished. This prospect
reacted on money lenders. who had been
preparing to exact somewhat higher inter-
est rates on account of the threatened in
road on banking reserves on the gold outgo,
coupled with the rate of loan expansion re-
vealed by the Saturday bank statement and
made necessary by the active selling OF
stocks for European account. By turning
buyer here today, London altered this fac
tor of rapid depletion of the banki. g surplus
and of difficulty for the support of the
speculative position in the stock market.
There was a mood of congratulatiOn over
the demonstrated absorptive power of the
New York market. In view Of the admitted
volume of last weeks foreign liquidation,
which Is placed by competent authorities at
$SO,OOO.0O to $25,0OO,OOO. While New York
had absorbed this amount of selling with
out serious inroads on prices. there was
an expansion in banking credits for the
same period of $25, 900 by the clearing
house banks and trust companies combined.
1t was with sensible relief, therefore,, that
1t was seen this morning that the strain on
the market was to be relaxed and that
thn -. gU4aa1 haRRnuraA from Tho.
banks were not to be withdrawn and
shipped abroad at once.
With the removal OF the foreign selling
pressure the organized control OF the stock
market was prompt to replace prices at a
level to compensate for last weeks declines.
The controlling elements had little outside
demand for stocks to aid in this purpose,
but no important selling was encountered
as an obstacle. The first prices represented
the greater part of the advances effected
during the day. Then came a pause and a
lapse into pronounced dizziness. This dis
inclination to pursue the upward movement
might be construed to mean remaining
doubts and apprehensions over the foreign
political position or desire to await the
election outcome. The contemplation Of
the S25, 600, 600 loan expansion and what it ex-
pressed of the effort erquired to meet last
weeks situation must have had some
Christening effect on speculative enthusiasm
and served as a warning of the desirability
Of retrenchment and of outlay at that rate.
Stocks which in effect had to be bought
on a scale implied by these figures might,
1t was assumed, be for sale in some part at
a favorable opportunity. Chicago reported
New York exchange at only 10 cents per
$1,000 discount. making a subsistence Of de-
mand on New York from that point. Re
ports of a coming settlement of the labor
controversy in the English cotton mill in
dustry were received with satisfaction and
caused an advance in the price of cotton.
Discounts receded in London and Berlin,
but Paris again took up the bulk of Lon
don's weekly supply of gold. The feeling
of reserve toward the advance here was
somewhat enhanced when foreign exchange
rates recovered late I'm the day and call
money rates stiffened slightly.
Bonds were firm. Total sales, par value,
A,154,OOO. United States bonds were UNI
changed on call.
Following were the sales and range OF
prices on the Stock exchange today,