New-York tribune., 1908-10-10
FINANCIAL AFFAIRS
FAIL And RALLY
Extremely HeaTy Foreign Selling
Strong Buying on Better Ne5cs
from .4brOad Frisco Notes.

Weakness on the stock exchanges Of the lead
ing European financial centres, due to the more
threatening appearance of the outlook in the
Near East and the lower range of prices
ported from London, caused a depressed opening
Yesterday in the local stock market. where first
prices were from to points under the closing
figures Of Thursday: and during the morning
hours the weakness accentuated foreign
houses selling stocks in heavy volume and short
selling and fair amount of commission house
liquidation contributing the sharp break
which occurred. Toward noon however. reas-
surfing private cables began to be received from
Europe and large buying orders put into
the market. the execution of which. in CON
junction with covering of short commitments
on q considerable scale. started recovery
which continued in moderate way to the end
Of business. the market closing with net declines
general but with much the largest part Of the
early losses regained The foreign selling
more extensive than for any previous morning
this week aggregating from $4,000 0O.000
shares. part of It being direct orders from
Berlin. but later in the trading the foreign
houses were reported buyers to a small extent.
Rumors Of disquieting sort. like that of Turk
ish forts firing on vessel flying the Bulgarian
flag, did their share toward producing the early
weakness but found reputation later. The
wheat market active and higher in the
early part Of the day but declined in the after
noon. as the prospect Of outbreak Of hos
tilites diminished
The strongest stock on the list Rock
Island preferred. which transac ctions heavy
for this issue rose from 43S to 4S9s. closing at
4 3. net gain OF 29s points while Frisco sec
ond preferred gained "a. The advance in these
issues followed the unexpected announcement
around noon that Kuhn Loeb e. Co. had
ranged 10 take care Of the Frisco note issue
maturing on December l, operation which
the Street had believed in the hands of the
Speyers. The financial district promptly in
terpreted the change of bankers as indicating
that Mr.. Hartman had become the dominant
factor in the Rock Islands affairs an assump-
tion which led TO buying of stocks of the Rock
Island system The assumption seems justi-
fed the extent that Mr.. Hartman is likely to
be consulted hencefortll By the Rock Island
mana cement and that the action of that man
agement in conffding their current financing to
the bankers Of the Hartman system signifies
that the new sort Of community of interest"
eHemplified In the case of the Gould system. in
the taking over of evidences of indebtedness
instead of blocks Of stock, is TO be extended to
the case Of the Rock Island system. the result
being the same under the former method, the
stablishment Of peace in the railroad field
The foreign exchange market was very strong
Yesterday morning, consequence of the
nlenacing aspect Of the situation in the Balkans
and the heavy sales of securities for foreign
account, due to that threatening outlook: but
the tone became easier in the afternoon. and de-
mand sterling closed at partial decline from
its early sharp advance. Time money rates in
the local money market hardened a little but
not reflection of increased demand from
borrowers. The preliminary estimate based
on the known movements Of money indicated a
loss by the banks this week of 81 10000 a small
change in comparison with last weeks forecast
and the heavy liquidation of the week in the
stock market makes ii probable that o-day's
bank statement will show such q decrease in
loans and deposits to result in a fairly large
addition to the surplus reserve