The White Pine news. [volume] (Ely, Nev.) 1906-1910, 1908-07-26
REACTION OCCURS.


NEW YORK. July 25.-Specula-
tive liquidation on a large scale
broke prices of stocks badly today.
The fall was gradual and restrained
in the early stages. but became more
preeipitate as 1t progressed. uneoy-
ering stop-loss orders. knowledge of
the existence OF such orders embold-
ems the professional operator to make
short sales and to offer concessions
in prices in making these sales, thus
forcing declines.
Speculative liquidation and short
selling have been in evidence this
week, bur were overcome by the force
Of the buying demand. II was in
this respect the market showed a no.
table change today. the buying orders
except at prices below the opening
level. showing material shrinkage.
The order from President Roosevelt
TO push a retrial Of the Standard OIL
case was a professed motive for much
of the selling. especially among those
who had bought stocks largely on
the ground OF the decision in favor OF
the Standard OIL Co.
The buying demand prompted by
that decision WAS fed by realizing
sales yesterday and the day before
by those who had bought stocks al
"A lower level.
The digestion of profits In that way
Is supposed TO have been very large
and To represent. moreover, the PASS
ing of stocks from the hands of the
powerful groups which have favored
t,.#a Of egaffaFa1
holders, much less wealthy and much
less skillfnl and practiced In the con-
duct OF speculative operations and
the manipnlations Of prices. There
was developed an element in the spec
ulation whose holdings had been
largely reduced AZ handsome profit,
aud which was thereby made indif-
ferent 10 further maintenance or adj
vance OF prices and willing to see a
substantial reaction and an oppor-
tunity 10 get back stocks at an adj
vantage. That such technical con-
siderations We're largely responsible
for the turn IN the price movement
there can be no doubt.
The extent and duration Of the adj
vance which had already occurred
fiiiIHHNllfi iiliG fRhhANAfAf
tnre OF the reports put In cireula-
ton 10 sustain the upward move
ment has pointed 10 the excess lnto
which 1t was running. YESTERDAY
reports. for instance. that the unlted
States Steel subsidiary officials we're
meeting here 10 consider measures
. for starting up full capacity of the
companies was met by foraml state
ment of President Corey that the
present activity of the plants repre-
sents % per cent of lis capaellF'
There has been active speculation
also. based on an assumption OF me
favorable outcome OF litigation al
fecting various corporate interests III
"A large way. such as the suits under
the commodities clause OF the Hep
burn act and against fixing rates ioI
gas. The influence of the success u
The standard OH appeal against the
fines levied upon II was seen III l,ie
jump in prices of some oil tle SUM
affected most by the speenlatloh' an"
In which realizing sales, III cohse
quence, have been unusually NAV
The DAVIS news offered lllile
change In general conditions ne
weeks currency movement lllalsau
ed another huge accession to me
cash holdings of the local banks .,le
snb-treasury operations and the
movement on balance from the III,
terror indicating an increase OF aoout
$4,000, 600 for the week. Inc slocs
market was quiet in the latter palt
oF tho day. but showed no eHeetlVe
,..,ayarv tho DAVIS losses running
a,ite generally from TO 3 points.