New-York tribune., 1908-08-25
FINANCIAL AFFAIRS
TRREGTL4RITY IN S1Ot hS.
LEGITIMATE Trading Resumed
Manipulation Fughtens Pubic.

=. .ooor,. known soon after the opening OF
business on the Stock Exchange that oflclal no
tice would be taken of the character OF liie 80 80
fnps in SATURDAYS short session. ana aS d N
-ouence the originators OF last week sp.o"
five folly were not factors in the tradlhS' eN
cont as reflected in the absence OF comm
house business. The gyrati"ns IN Sa'ui u, u<S .
market which thoroughly checked ieSi'ii,t ma
outside operationS also were ei1eCllNe III hiiii.e
Gov tho time London interest in the local trau-
80 -biIa they were responsible for lower
,ricas for American securities at the fil'i9ii
canitaI After some selling at the oPeniiie '
the account of interests who dld hot odio
carr1, stocks owing TO fear of further assfes-
sive rnanipulation. the general market pe
. +-adars' affair with fluctuations colllliieu
within narrow limits on smaii Voiuile Vi o
ness stotal sales amounting 10 ''of'''' 0
aoainst the million share operations SdIuiu uaS-
rrIa dealings represented actual speculative
transactions while the greater part OF Satu'
DAYS total reflected fictitious sales Flhal pIi0eS
showed irregular changes. with more net ioS 80
than gains among the active securlleS' Ihe cii'
weakness being reported IN the mn 9ii'i - -
Northern Pacific and Great Northern fecorutis
declines of more than one point IheFe Was
further evidence OF liquidation In IieSe lSS!e'
for the account of weak long interest duN an
tare of which was taken by floor traders 10 oilei
r,rices down the movement being entirely OF d
trao,,1s+i,-a origin rather than indicating sales
of investment holdings Recently II was thousht
nv certain buyers that there would be a mn
melon cutting before the end OF the year III
the nature of an extra dividend to Northern
pacific stockholders, and bull account was es-
ia blished on that basis. but current Indications
do not uphold the idea Of such dlstrlpulloi'
The Hartman shares presented strong coh-
trast to the Hill issues showing great resistance
to selling pressure and closing at net gains
Southern Pacific ending at an advance OF l$s
Tho general market was firm in the last hour
and last prices throughout were above the
lowest
Wall Street commission house business has
been seriously checked by the abuse Of the Stock
Exchange machinery as witnessed in the opera
,jone AT the close of last week. Markets In
which speculative forces battle for supremacy
through the medium of artificial sales and other
tricks known 10 the speculative community 90
not appeal to the operator who wishes q falr
chance for his money, while they serve to
frighten legitimate holders of American invest
rnent securities. who naturally become alarmed
when they see high grade issues tossed about as
mere speculative footballs. especially as from
the investors point of view there is neither
rhvrne nor reason in the movement wan
Street gets an unsavory reputation throughout
the country result of occasional gaHpllhs
orgies on the Stock Exchange, and II therefore
is encouraging to note that the Stock hxchahgs
authorities have started an Investigation for the
purpose of finding ont if possible the reason 1or
the great activity in Saturdays market IN
which one firm alone is said to have SHOWN by
its Clearing House sheet IJoHp shares dealt in
nd ITha
bring about such astonishing, If not dis
renutable speculation in the two-hour session
Wall Street and its legitimate functions are
hound I'D with the material progress of the coun-
trv The brains and energies Of the entire peo-
ple are represented in the Street and the nation
would fare badly if Wall Street should go out Of
business: but the methods of a certain element
in the Street are conducted on lines that could
precipitate panic of widespread effect The
speculative public may well stay out of a mar
ket in which il is asked to place its money in
blind pool operations. A few more markets like
that reported on Saturday and commission house
business for public account will be as dead as
the proverbial door nail The speculation being
conducted from Boston is hurting the market;
the manipulation of professional operators who
feed on public credulity is upsetting legitimate
market conditions, and the fragrant violation of
the rules of the Stock Exchange by members
who are supposed to uphold and protect the best
interests and traditions of the board of brokers
seriously reflects upon those in authority.
Under present conditions buying of stocks and
bonds should be confined to actual cash pur
chases. Doubtless many intending buyers for
inve stment account will postpone purchases in
the expectation that the fight between specula
tive giants may bring about lower prices. bat
in view of the current monetary situation and
the reassuring indications of growing strength
in the business world investments made at the
existing level of values do not look unattractive
More money can be made in buying and holding
dividend paving issues than in lending money
and from all indications this condition of affairs
will obtain for long time to come owing to the
enormous supplies of idle capital in the banks
of the country. The combined statement of the
New York City financial institutions shows cash
holdings of more than 500 100000 Money has
not begun to go the interior in any large
amount and even when the movement begins in
earnest il is not likely that the drain this
centre will be large enough to bring about high
rates for funds Some money brokers and bank
ers believe that will not have anything above
a per cent money market in the fall. while
others place the limit per cent. but for Il
short period only There is absolutely no rea-