New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1908-09-12
FINANCIAL AFFAIRS
STOCK PRICES DOUN.
Professional Selling and Bear Press
ure Hurt Values Bdnks
Lose Money.

On q lighter volume of business than recorded
in Thursdays market quotations moved yester-
day toward a lower level in the best part of the
dav. with moderately heavy net losses in the
active issues. There fair amount of sell
ing nressure in most parts of the list, especially
at the close when prices were exceptionally
weak under the influence Of active operations
bv the professional element for lower values.
The failure Of the market to rally on attempts
made with this object in view and the selling by
houses that recently were heavy buyers natu-
rally helped along the beariSh sentiment on the
floor, while belated efforts to attract buying on
the strength of the circulation of rumors OF
forthcoming important announcements strength
ened the theory that operators heavily com
mitted to the bull side were putting forth eleV-
enth hour bids for the support OF the public.
There was no public buying on the decline
and no indication in the character of commission
house business of the development in the near
future of an active outside inquiry for stocks
for speculative account. Traders who bought
stocks to even up at the close found all they
wanted practically at their own terms. The
Hartman shares were allowed TO take care or
themselves and though they sagged with the
rest OF the list they were not under heavy
pressure and did not suffer big losses in pro-
portion to the extent of their recent daily ad-
-vances.
In the early afternoon Reading marked
traders who reported that the issue responded to
their efforts as easily as noted in Thursdays
operations when attempt was made to ad-
vance it the commodity clause decision.
Reading is a per cent stock, and if the market
were moving wholly as the result of discrim-
mating public investment buying there doubt
less would not be much Of a market for the
issue at it's current level, which gives the stock
about 3 per cent yield Heavy declines in
Railway Steel Springs and Distillers' Securities
We're based on talk of dividend reductions Call
money was as high as per cent, and sterling
was trihe lower.
Local banks have lost a moderately large
amount of money to the interior in the current
week both on direct shipments and transfers
through the Sub-Treasury, and in banking cir
cles it is believed that in the Of the next
two months the outward movement of funds
from New York will bring about material con-
traction in reserves at this centre, though moth
ing approaching disturbance is expected unless
speculation the Stock Exchange should run
riot.
1t is understood that the advance in call
money on Thursday was not due to considera-
tions directly affecting the present supply Of
money here, but to decision on the part Of the
leading bankers to extend a hint to the bull
operators in stocks that halt in extravagant
speculation ought to be called at once. The
money market seldom has been stronger at this
period of the year. but ii is conceivable that
unbridled speculation and manipulation in Sc
curities would tend TO unsettie conditions to
extent that would seriously interfere with an
orderly money market and would serve to check
legitimate operations in the business world.
Through their control of the money market the
bankers have Il within their power to prevent
excessive speculation. and II they will work
together in the handling of the daily rate for
loans there will be no troublesome oVerspecu-
lation.
Though a large proportion of the business of
the Wall Street banks represents loans stock
market collateral for stock market purposes. the
bankers doubtless appreciate the fact that there
can be permanent profit in encouraging that
class of speculation. which always ends in dis
aster. Misrepresentation and strained credit We're
the chief factors IN last falls panic and the fact
that the banks glutted with money does
not warrant them in extending accommodation
for the promotion of speculation that would
lead to imitation.
Stock market values for the leading railroad
issues figure out at the high points made in
Thursdays dealings average price Of 11014,
and for the leading industrials average price
Of So 50. On September fG, 1907, the stocks
showed an average price for the railroads OF
1891, and for the industrials 71.6S. In the
panic and at the low level of the current year
the average was far under the range recorded
one year ago. and the advance TO the present
level has been enormous and, under general
conditions in the business world, eXtraordinaIi &.
There has been added TO the market value If
the stocks listed on the exchange more thS-i
$4,000 600 900 in the last six months. and the re
are many persons who maintain that this appre-
of money, restored credit conditions and signs Of
q return of normal times. but double discounts
ell these factors.