New-York tribune., 1908-09-23
FINANCIAL AFFAIRS
SHARP BREAK IN STOCKS.
Final Prices AboUe the Lo5c Points
of the Day-Pokhcs Hurts
Wall Street.

A feeble attempt made in the first hour
Of trading to rally prices on the Stock Ex-
change, but the buying power proved to be
wofully weak, and after advances that ran
from Il of 1 per cent, chiefly on traders cover
ing, the general list began to move toward
lower level, with declines of from 2 to points
from the high figures of the early dealings. Re-
newed buying by the shorts in the afternoon
brought some partial recoveries, but final quo
tatious in most issues were under the last fig
ures in Mondays operations. Further nquda-
ton of margin accounts reported, and
newed aggressiveness on the part of profess
sonal bears again in evidence, the two SELL
ing movements being the chief factors in the de-
cline. There was no indication Of investment
liquidation and reason in the movement of
values for this sort Of selling as the decline
due entirely to speculative conditions, ag-
gravated, no doubt, by the political situation,
which discussed by spectators. who had
market objects in view, on lines calculated 10
frighten the small holder out of his stocks and
his wits well The so-caled uptown element
sold stocks throughout the five hours Of busi-
ness, its attitude being particularly interestingas
only a few days ago it was plunging on the long
side Of the market the theory that the ad-
vance then under way would run on indefinitely.
1t mentioned at that time in this column
that the bull side of speculation looked extreme
ly dangerous. And notwithstanding the decline
that has taken place from the high points of the
year the suggestion is herewith made that the
bull side is still dangerous for small spectators
except in the case Of those operators who un-
derstand enough about market movements to
buy on the 'slumps and to sell the jumps"
At the close Reading showed net loss of 3ss,
against a maximum loss of SIS, while corre-
spending improvement from their low prices
was exhibited by all the leading active issues.
Total dealings were heavier than on any preced-
ing day in the current year
The current demand for money is light, and
unless there should be a material increase in
he irH-f in he Tate
for loans will rule at a low level throughout
the season when ordinarily high quotations
expected. The demand from the interior
this centre in connection with the movement of
the crops is so insignificant at the moment that
it may be said that New York is extending no
assistance TO the West, reflection of this being
presented in the course of exchange at Chicago
this city in the last few days, which has
moved from discount TO q premium and back
again to a small discount. Western banks are not
drawing on their balances here at present be-
cause they have ample supplies at home to meet
harvest requirements, their ability far to
handle the crop demands being due TO the alb
sence of inquiry for accommodation from mer-
camille quarters. The banks through the coun-
try are placing only small amounts of money
mercantile loans. The commercial paper mar
ket is inactive and time money still may be
cured for almost farthing
The duness in the loan market is not surpris-
ing in view of the political uncertainties Though
country believe Mr.. Taft will be elected they
unwilling to make extensive commitments,
their attitude being in line with that which al
ways has been noted in Presidential years,
matter how promising the prospects have been
for the victory of the business mems party
The fact that the mercantile community is NOV
ing a hand to mouth basis indicates that the
great majority of business men in this country
would view the election of Mr.. Bryan as a ma
tional calamity, but in their position there is
encouragement, because it suggests that the
country's workers will cast their votes in the
Republican column. This is a business nation
and it cannot afford to try Bryan experiments
On declines in stocks brought about by political
scares. idle capital ought to move into good
stocks and bonds.
From the investors point of view securities of
recognized merit cheap at ruling quotations
and though there may be many people with
funds on their hands who are unwilling to buy
pending the outcome of the November voting it
is worth noting that bond houses report a steadv
demand from the West for gilt edged issues
while stock houses report a similar inquiry for
representative shares. The fact that the West
is buying is significant in view of all the Demo-
cratic talk about Bryan's vote getting power in
that section Of the United States The West
was not materially affected by the results of the
Wall Street panic last year. 1t has money in
abundance and Il is showing it's confidence Is
the Republican party by buying securities