New-York tribune., 1908-11-22
FINANCIAL AFFAIRS
BEARS ATTACK VALUES.
Stocks Do1cn from to 9 Points
Bank Statement Figures Shoe
Small Loss an Reserves.

general
the influence Of traders operations and further
realizing declines OF a point more being made
by many OF the leading issues and heavier de-
clines in OF the specialties. notably in Ten
nessee Copper, which at one time showed loss
of points from the closing Of the preceding
day. An attempt to convert paper profits into
cash In this issue by people who bought the
stock at its top price on It's recent upward
movement was not accompanied by any support
from inside sources, and as a consequence bear
spectators hammered the stock with rare sue
cess. The heaviest decline in the general list
was reported in the last half hour when there
was a marked revival Of bear rumors especial
prominence being given by traders to the forth
coming publication Of the views Of prominent
steel man the tariff and the probable eHect
of a reduction Of duties the steel trade
The professional element without foundation
assumed that these views would be extremely
bearish on the Independent steel companies and
made their ideas bear argument on the en-
tire list though technical market conditions and
the small attendance the floor and in brokers'
offices afforded the operators for the decline the
real reason for a demonstration against values.
Amalgamated Copper, American Smelling, Ches-
apeake Ohio, ST Paul. Reading, Southern Pa
cifc Union Pacific and United States Steel lost
from ! TO . points while Tennessee Copper lost
Z. The weekly statement of bank averages
showed fair gain in cash, but decrease IN re-
serve above legal requirements OF S6l2,325 TO
S295e9 62a which compares with deficit OF
s54 I03, 800 year ago and surplus OF S4.4OS.-
425 in 1886 Loans increased S4.625500. The
statement OF actual conditions as OF Friday
night presented q larger increase in loans and
smaller gain in cash than the figures OF the
average exhibit. Total cash Of the local banks
and trust companies amounts to S4SS5OS 300.
One year ago the lowest prices Of the panic Of
1907 were recorded in the leading railway and
industrial securities the level then established
marking the turn in the downward movement
that resulted from October's upheavaI In the
financial markets. At that time the chief rail-
way shares registered average price OF S14l
and the chief industrials average price of So,
which compare with a present average for the
railways of little less than 11e and for the in
dustrials about $3.50. The closing quotations
yesterday average of points down,
both for the railways and industrials, from the
highest figures Of the post-election bull market,
these quotations which represented an apprecia-
tion of about s400 100000 a direct consequence
Of the election OF the Republican ticket, compar-
ing with average price in January, 1906, of
36 for the railroad shares and 103 for the
industrials, the best figures ever recorded in the
history Of the Stock Exchange. The decline
from the high points OF 1906 to the low OF 1907
remarkably heavy, but the recovery from
the 1907 level, though not making UP all the loss,
more significant than the preceding period
of sagging values inasmuch it effected
at time when the country suffering from
e wave Of weakened credit, industrial depression
and a loss OF confidence in all lines of trade.
The question that is now uppermost in the minds
go back TO the level OF 1906. At the moment it
must be admitted that quotations in their recent
appreciation have fully measured the favorable
features in the general situation and improve
ment that may develop in the country's busi-
ness in the near future, but against this must
be placed the fact that Wall Street takes a long
time view of the tendency of conditions affecting
values and that II II believes the country is to
run into a period OF industrial progress and
prosperity It will base its plans for the future
accordingly.
Many Of the best market judges believe that
with large supplies of money throughout the
world and with constantly increasing gold pro-
duction the trend Of values must be in the di-
rection Of q higher level unless upset by the de-
velopment Of wars other factors that would
destroy wealth but they do not believe that from
the current range Of quotations an unbroken
line OF advances will be recorded The market
apparently has reached the point from which
sharp reactions must be expected. The bear
party is becoming more aggressive and the
temptation TO take profits is attractive at exist
ing levels. This situation was reflected in the
course of values in the last three DAYS of the
week just closed, when the general market sold
down on distributing sales and bear operations
based entirely upon the weakened technical posi-
ton or speculation and the profitable selling
level established In the so called election boom
Commission houses as a rule suggest the pur-
chase or stocks on the reactions, as they can see
nothing ahead that will make protracted hear
campaign successful, but they do not advise
fndiscriminate purchases and trading on small
margins. AT this Juncture IT is better to buy ten
shares outright than one hundred shares on a
m