The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-10-12
STOCKS BOUGHT
At LOW PRICES
Heavy Liquidation in American
Securities Caused by the
Balkan Trouble.
FOREIGNERS ARE SELLING
ADVANCE EXPECTED WHEN THE
RUSH is OVER.
FOREIGNERS ARE SELLING

New York. Oct 1.-THE speculative ele-
ment which has been holding prices of
American securities at an advanced price
level in the professed confidence in an
early restoration Of prosperity met a Sc
rious obstacle in the flood of liquda-
ton of foreign holdings of these securities
which was let loose by the gathering Of
the war cloud in eastern Europe. The
foreign news was received with assur-
ances early in the week and there were
frequent and effective rebounds in prices
each day when the days business for for
eign account has been concluded.
There are no American railroad lines
running through Bulgaria" observed the
confident brokers as they bought large
lines of stocks on the decline The cable
lines. however, continued to bring orders
TO sell thousands of shares of American
stocks and the active demand in the eX-
change market TO effect remittances in
payment testified to the reality of the
selling and the necessity of finding funds
to pay for the sales thus accepted. The
Improbable nature of the attempt to hold
mp prices merely to afford profit to
these foreign sellers made growing i'm
DreSSiOnS as the week progressed and the
selling pressure became more acute, I'M
Ill artificial support was practically aban-
doned.
y Technical Disadvantage
Various factors combined. therefore. to
make the effect of Europe's political trou-
bleS rather more acute in the New York
stock market than on the foreign bourseS
themselves. The weakness of stocks in
the New York market was ascribed quite
universally to the technical disadvantage
of its position and was not regarded as
a reflection Of any likely impairment of
inherent values Of American securities
even in the event of a European war.
The strength in the grain markets was
evidence of the increased demand eX-
pccted for at least portion of this coun-
fs-rFfe l0,1ff or
some other lines would. of course. be cur
tailed. On the side Of the securities mar
ket there is the likelihood that. apart from
the early liquidation from foreign bank
ing and financial sources 10 supply war
funds, there would be some flow of for
eign investment capital into American Sc
curities after being Withdrawn from for
eign enterprises Immediately threatened
with damage from war.
Confidence in Future.
The course of affairs at home was al
most ignored in the dominating influence
of the foreign situation.
There remained, however, a strong I'M
dercurrent of confidence in the progress
of Improvement in business and in the
prospect of its acceleration after the cleo
tions. Many industrial lines report a
holding back of intended orders pend
ing the elections. Railroad earnings show
growing advantage in the comparisons
with last years showing
Idle freight cars continued to decrease
and the chairman of the car efficiency
committee of the American association
asserts that the present rate of traffic in
creases would bring an actual shortage
of freight cars by the first week in De
cember. Orders for finished products OF
steel are still moderate. but the rate of
iron products on October l had been re-
stored twO-thirds of the actual out
put 70. IL banner month of October last
YEAR The months government crop re-
ports are accepted as showing abundant
grain crops already harvested and the
definite indications of a plentiful cotton
crop, with markets Tor all at profitable
figures.