New-York tribune., 1908-08-22
FINANCIAL AFFAIRS
4CTIJrE STOCKS LOWER.
Final Prices Dozen on Professional
Pressure Banks Cain Cash.

.,,I,o,,+ +bs ava hours of trading, with more
losses than gains at the close, all the pIoIhe,l'
shares showing net declines, which as T. rule'
we're confined to fractions. Transactions were
ma de- m in great part of the operations or the
professional element though there was some
selling Of long stock by commission houses Iol
the account Of outside spectators. who douot-
less were alarmed over the markets irregular
tendency the absence of aggressive support on
declines and the indications of manipulation Tor
lower prices. Opening quotations were aboEe
the closing Of the preceding day, but before the
noon hour the general list developed weakness,
which in turn was followed by bidding up
process in the afternoon, and that was sue
ceeded by renewed weakness in the final opera
tions. Many of the trades represented the deal
ings of second rate operators, and in some IS
sues transactions were nothing more tnah
matched orders executed either TO advance or
depress quotations. Southern Pacific sold at
par for the first time in its history, the move
rrent being helped by legitimate buying based
on the strong position of the property and on
the attractiveness of the stock as speculative
and investment proposition. The issue pays 70
per cent and be carried at an absurdly low
price for money. As result of the apprecla-
ton in the market value Of Southern Pacihc
common and preferred the Union Pacifc's hold
ings of these stocks have increased IN value
$40 430 373, while the Union Pacffc's original
investment in Southern Pacific shares now re-
turns to the Union Pacific 10a per cent. The
pernicious operations of the Rock Island bear
party were responsible for further weakness in
the Rock Island and Frisco issues, and the
character of these transactions caused severe
criticism In banking circles Wash sales and
matched orders not permitted under the
rules of the Stock Exchange, but there was
ample evidence of such transactions yesterday
Unfortunately, the Stock Exchange authorities
have no way Of proving such operations. though
they may be morally certain of their presence
in the market.
Many wall Street houses believe that pending
the next upward swing lower level of prices
may be established on the Stock Exchange, but
they are advising their customers to buy on all
reactions, the theory that the greater num-
Der of securities are in strong hands and that
lust as soon as the biggest capitalists in the
country. who are now as a rule on vacations,
return to Wall Street further material improve
ment Will be recorded. 1t is maintained by
houses that in a position to Judge the char
acter of speculation with great degree of con-
fdence that the floating supply of stock avail
able for covering purposes is small. and that
though the big men may sit idly by while the
traders and minor outside spectators are sell
ing the market down they are in a position to
control market movements and will give the
shorts an old-fashioned twist when they feel
disposed TO do So There are other houses. but
only few that appear to believe there will be
no further Improvement Of importance before
election. and that quotations two months from
now will be materially lower than the current
level There are various uncertain factors to
he considered at the moment, especially by the
opnrators on small margins. Stocks are high in
comparison with the low price. Of the year, but
money is cheap. and there recently has been
bie elimination Of weak accounts in brokers'
Offices as a result of active declines Technically
fine position of the market IS stronger than IT
was a few weeks ago but the larger Interests
at the moment are taking only passive interest
in the dealings. They are holding their stocks
hut they are not offering effective support on
hear raids and the fact that several powerful
--,-l,o ,tofi inr7 ic
for fair dealings taking every opportunity
10 attack values. witnessed in the case Of the
Rock Island. naturally ought to suggest extreme
caution on the part Of people who buy on bor-
roved money at the current level. Wall Street
has never gone through a political campaign
without election scare This may be worth
noting by intending buyers. Conservative bank
ers vino do strictly investment business advise
the purchase OF good stocks and bonds at pres
ent prices and all reactions for cash. and
from what may be gathered IN high banking
circles there is going on gradual absorption
OF first class issues on this basis
II is understood that in the course of the next
few months there will be q number of new
security issues by different railroads and 1t is
learned that tentative arrangements already
have been made by two companies for the place
rnent at satisfactory terms Of a considerable
amount of bonds with local and foreign bank
ers Money is easy abroad as II is in this
country and foreigners becoming more
confident in the belief that a country that can
show such a power of recuperation after a So
rious financial crash is a safe one in which to
invest money 1t is likely that the next twelve
months viii record a large gain IN the holdings
Of American securities In Europe IN the cur
rent week the local banks have gained in cash
according to the estimates based the known
movement OF money, s7,744100. and IL there
fore is probable that to-days psnk St2tenlcnt viii
show n further increase III reserves, unless there
has been a large expansion n loans. The interior
demand amounts to i.tte present. but ez-
change at outside cities H.ew York suggests
the proba biljts of outward flow 81 currency
~ considerable volume in the near future. Such
q movement, however. viii not affect 10 saX