New-York tribune., 1908-09-24
FINANCIAL AFFAIRS
RECOVERY. IN STOCKS.
Heauy Covering of Shorts-Firm
Closing, Following Period Of
Fluctuation-Money Easy.

The recovery which set in on Tuesday after
noon in the stock market continued in the early
trading yesterday, initial prices being point or
so higher than the last figures Of the preceding
day following q higher range Of quotations from
London, to which centre heavy buying orders
had been cabIed from this city. The advance,
which was due in part to covering Of short COM
mitnents and in part TO repurchases of long
stock by important interests, continued a
moderate scale until toward noon, when period
of hesitation occurred, with irregular f1uctua-
tions A firner tone developed the afternoon
proceeded and the market closed strong at
about the best prices of the day and at general
net advances which ranged from fractions in
many instances to 26s points in Reading. The
Hill stocks were the objects Of sudden drive
in the last half hour, from which they made a
partial rally, although Northern Pacific closed
at the preceding days final price and Great
Northern suffered nearly full point loss. The
Chicago Great Western issues were conspicu-
ously strong on the revived report, for which
there appears to be foundation, tina. negotia-
tions are in progress which may result in the
taking over Of the road by the Canadian Pacific.
The Erie issues also showed decided strength,
the common gaining h points on heavy trans
actions its course lending color OF probability TO
the persistent runaor of accumulation.
Wall Street never went through a political
campaign without an election scare, and
rule Presidential years have been marked by
periods of weakness which have caused heavy
losses to margin traders and big gains to pro-
fessonal spectators, who have little interest in
the outcome of the November voting SO long as
they are able to make profitable living from
the course of securities values. Wall Street
appreciates the fact that the election Of Mr..
Bryan would be a national calamity. and
Wall Street Will vote against the Democratic
party but the professional element in the Street,
though in favor of Mr.. Taft. shows no disposi-
ton to keep out of the market because some
people say Mr.. Bryan will be elected. Indeed.
the professional trader just now is quite willing
TO have the idea that there is great uncertainty
over the chances of Republican success gain
widespread currency for the good reason that he
is short of the market and is actively engaged
in encouraging owners of securities to lquidate
their holdings 1t is not likely however, that
investors VIII sell because of the declines that
have been recorded in the market and further
declines that doubtless will be brought about,
but II is than probable that the bear cam
paign viii force many speculative long accounts
into liquidation.
There are impressive reasons why stocks
should not be bought at this time on small mar
gins. notwithstanding the losses that have been
registered in recent days from the high prices
of the year, but the general situation offers no
argument against the purchase of good stocks
and bonds for cash-that is for investment ac-
count In the best informed quarters Of the
banking community it is believed that eventually
quotations for all securities Will move to a
higher level. It also is believed that the great
accumulation of money in the financial capitals
of the world the increased production OF gold
and the progressive mercantile tendencies of all
countries will carry prices for stocks and COM
modities TO level never before reached but it
IS not believed that the active beginning of that
movement is at hand Money is in abun-
dance at all the leading financial centres. Bank
deposits increasing in national, state and
savings institutions, and money this fall prom
ises to be easier than in any corresponding time
in years. This great supply OF funds is laying
the foundation for expansion in the country's
I'D, r-rfa o7ad 4z hrgn 1fn for fEp
future. People who own stocks and bonds that
represent companies engaged in legitimate busi-
ness enterprises therefore should not be fright
ened by passing stock market fluctuations.