New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1908-09-04
FINANCIAL AFFAIRS
STOCK PRICES DOWN.
Professional Selling Pressure Hurts
VaZues-Banks Buying Bonds.

e.oo,- ,,,o-l.s+ values were consistently weak
il, the five hours of trading on volume oI JUS
ness that represented active selling on the pai
of the professional element some dlslilout'oi %
e+ocl nv substantial interests and ltquldatloh py
unimportant commission house traders WIG "
came alarmed their margins at 'lie III
indication of pressure. The weakness IN AIiieii
can Smelling and Amalgamated Copper was az
oo,,,,,on;ad b1, the report that influential
Standard OIL following was converting It's paper
profits in these issues into cash, but the seHel"t
character of the operations suggested more s'Oit
selling than actual liquidation, Whlle the SAM
thing may be said of the movements ELSEWHERE
in the list. The big traders on the moor OF 'ile
exchange made cautious tests OF the genera
market in the early dealings, and eVlden'ly
they were satisfied that conditions were ripe
for a reaction.
The fact that brokers for the Hartmann Prick
Rockefeller party offered little support TO their
specialties though taking stock TO some extent
on the decline. apparently created the impression
on the floor that the largest interests IN the
Street were not averse to lower prices for the
time on the decline the market became more
active with aggressive professional selling n
the afternoon and in the greater number o.
leading issues losses amounted TO more than
point American Smelling showing a maximum
loss of asa St Paul. Amalgamated Copper.
Atchison Reading and Union Pacific closed from
~ TO az points off from Wednesdays final
figures. There was a good demand for Amefl-
can Telephone and Telegraph stock and con-
vertible bonds. the movement being accompan-
led by the report that the railway telegraph ser
vice on the Union Pacific would be discontinued
and would be succeeded by the telephone \
number of railroads. notably the Lackawanna
are installing the telephone along their lines for
the use of agents and dispatchers. The market
closed weak. Banks were active buyers of bonds
The banks make more money by investing
their funds in bonds than in the loan market at
present money rates.
Though bank clearings for the month OF
August reflect great activity in trade centres,
they show nevertheless, that slow recovery
is under way in the country's industries. Total
clearings in August We're the fourth largest IN
the last ten months. but II per cent under
those OF August. 1907, and p per cent under
August 1906. Compared with this time in 1903
and 1904 when economic conditions were some
what similar TO those existing, present
clearings show marked Improvement, while the
same thing may be said of railroad earnings
which also trustworthy barometers o. trade
There is reason to assume that in the rest Of
the year bank cearngs and railroad earnings
will not show Improvement over the preceding
months of 19OS indeed, all indications point
toward gradual gains in clearings and earnings
and they also point toward better foreign CONF
rnerce conditions as result of bountiful har-
vests in this country and low supplies of grain
and cotton abroad. The American farmer ap-
parently has profitable year ahead, for unless
all signs fail he Will be able to sell all his sur
plus products at big prices.
And If the farmer makes money men in other
lines will prosper. Money is in light demand
at present but the enormous holdings of the
banks must at no remote time become an i'm
portant influence in bringing about greater
activity in the country's business, and ii is
likely that, following the probable election Of
Mr. Taft a radical change will take place in the
character of the loan market, as a consequence
of a widespread mercantile demand for funds
and OF an active inquiry in connection with
operations in the securities market. which will
include the making OF capital issues by the
railroads for the furtherance of plans for rail-
way expansion which We're checked last year
by strained credit. Bankers believe that the
country's transportation companies will expe-
rience no difficulty in selling their bonds, and
they also believe that in the course of the next
twelve months a large amount of new securities
will come upon the market.
The Bank of England made change in its
minimum rate of discount yesterday and showed
in its weekly return q proportion of reserve TO
liability OF $500 per cent, comparing with an
eight-year average of u. 13. There was a slight
falling off in reserve from week ago, and the
chances are that from until October
serve will decline a result of the usual
autumn demand but the holdings of the bank
are so heavy that decline in the percentage
of reserve 10 liability to 30 per cent under
would hardly cause advance in the discount
rate which before the end of the year may be
reduced to = per cent. year ago the English
bank rate was y per cent, from which level it
advanced To per cent before the end of De-
cember. Conditions at present in the London
money market are just the reverse "f those pre-
yare in 1907, just they are in the New
York market. The ease of money at the Brtifll
capital and at Paris. in connection with the low
money rates here. doubtless VIII tend TO develop