New-York tribune., 1908-08-15
FINANCIAL AFFAIRS
STOCK VALUES DOWN.
Prices Decline on Liquidation and
Bear Pressure Banks Gain Cash.

Stock market values suffered severe losses in
yesterdays trading on volume or business
that ran above one million shares Liquidation
under stop loss orders was feature of the
dealings and as a consequence of this sort Of
selling a large number of weak accounts were
eliminated while with an extension Of business
on the short side of speculation the sales for
margin operators materially strengthened the
technical position of speculation The market
ran into an overbought condition early in the
week, and the decline Of the last two days was
wholly IN line with the expectations and pre-
dictions of careful Wall Street observers. Weak
ness was not accompanied by developments af-
fecting adversely the intrinsic worth of securi-
ties but the declining tendency gave rise to
runners regarding the financial condition OF sew
eraI companies. notably in the case of the Rock
Island, Of which it was said and officially de-
MED that the interest due on the companys
bonds would not be paid in September. As
matter of fact the money for this payment IS
already in bank The weakest feature Of the
Rock Island situation is found in the position Of
the St. Louis & San Francisco. which has
large note issue coming due in the autumn, but
il generally is believed that a way will be
found 10 finance the requirements Of the COM
pany. General outside conditions affecting
stocks were favorable, and leading Stock Tx
change interests credited the heavy losses IN
values entirely to speculative conditions and
desire on the part of the banking interests TO
kill off overenthus:astic bulls Losses ran from
more than 1 point TO "A, the latter being re-
corded by American Smelling. Anaalganated
Conner and Reading lost more than 8 points;
Anaconda 211; National Lead, 27s; New York
Central. Az Southern Pacific, 2. and Union
Pacific 2 Selling Of New York Central was
based In part Oh the companys earnings for the
first half Of the year, showing less than per
cent earned on the stock Traders who bought
10 even up ar the close found plenty Of stock in
the market
According to the known movement Of money
IN The week the local banks have gained
S4671100 in cash holdings, due 10 excess gov
ernrnent payments and 10 slightly larger re-
CENTS of currency from the interior than snip
ments The interior demand for funds VIII be-
gin in earnest before the end Of the month, but
in the mean time the city institutions doubtless
will make further additions TO their reserve and
"a ssh items and have available for outside re-
ouirements the largest amount OF money re
corded at this time Of the year since 1884
Unless there has been a heavy expansion IN
loans to-days Clearing House statement of
averages ought to show gain in the reserve
as compared with a week ago, but even II
through some unknown movement or currency
a decline should be shown, little interest Will
be taken in the change owing TO the extensive
actual surplus of the associated banks and trust
companies The federal Treasury, though con-
1iu11ine to lose money TO the local banks, Is be-
ginning to show some Improvement in receipts,
while the deficit so far in the current month
amounts 10 only $1.10S,44S, compared with more
than SO 600 900 in the same time last month.
There is a large amount Of capital IN this
country available for the purposes OF trade and
for the investment markets, but its movement
into industrial channels far has been far
lighter than that reported in investment Sc
curfties the latter. however, rejecting conn-
dence on the part OF capital in a complete re-
turn at no distant period of normal times in the
business world. When the crops begin to move
actively the money received by the agricultural
section of the country for its products doubt
less will be an important factor IN stimulating
industrial activity particularly as this year the
farmers will receive high prices for their grain
and eofton The farmers when prosperous are
good spenders. and the increase that VIII come
to the buying power Of the farm territory
through big harvests at good prices viii be re-
flected in most lines Of trade in TINS country.