New-York tribune., 1908-12-21
FINANCIAL MARKETS
LOWER RANGE IN STOCKS.
Money Rates Stifen as Result OF
HeaUy Cash Losses Trade
Conditions Sound.

year on Saturday, December IA. while on the
same day the industrial issues were only shehtiy
under their record figures In last weeks mar
ket the average price for both the railroads
and industrials was materially lowered on a
speculative uqutdating movement acconnpaheo
ov aggressive operations for the account OF 4
bear party that showed more strength ana peter
organization than at any time since the Deslh
ming Of the bun campaign. A week ago the
probability OF the development OF snarp re@c-
ton in values pointed out In tnls ColuLiiil'
but the ordinary trader was unwilling TO auI1lit
that the heavy tendency that developed lasI
MONDAY foreshadoued the declines that took
place in the subsequent days, with severe
slump on Thursday. Stocks have been In weak
technical position for several weeks, ana IL only
required a hardening tendency IN the HioIeS
market to bring about a setback 10 DUH opera
tions, though the declines registered DID not
represent the passing from the market OF the
powerful interests that for many months nave
been committed to the long account There Is no
reason TO suppose that prices for STOCKS nave
seen their best levels. Indeed, there are many
good arguments favoring substantial improve
rnent in the course OF the next six months aoo'e
the best figures SO far quoted The so-calleu
big men are still espoused to the bull end OF the
market and though they may for time with
draw active support their plans for the future
practically demand a gradually rising range Oh
values The largest commission houses IN INC
Street advise the purchase Of good securlues on
all reactions, but they do not look lot eAleHueu
bull TRANSACTIONS unlll dlbCI 1iiC NO-t'
wear owing TO the temporary higher level IN the
money market A period of inactivity and lower
prices will not interfere with well protected Dull
accounts nor will II indicate that any ADVERSE
change has come over the countrys lnouS'iI"'
position ,
Trade conditions are improving, and though
thev are not moving forward SO rapidly as some
people would wish, there Is no reason LOT ols
courasenent over the outlook for general busl-
ness In the new year. Persons who are 1nchneo
Of
should study fundamental conditions and not
lose sight Of the fact that in the current Sedl
the value of the nations farm productS reaches
tbe most extraordinary total in the history OF
the country, amounting to $7778.0OO,o0o rms -
pbout four times the value of the output OF the
mines including mineral oils and precious
metals The gain IN the value OF farm prooucts
in 1908 over 1907 is $290000.000. Certainly any
one who studies these phenomenal nsures
cannot be pessimistic regarding the future OF
money and business in the United States. The
country is entering an era of TREMENDOUS agrI-
cultural and general Industrial expansion ana
it is backed by & large supply OF money Whlch
constantly is being added to by increased gold
production The gains already made in business
from the depression in the earlier months OF the
wear and the growth Of trading on the STOCK bH-
change have served to increase the loans or the
financial institutions to a material degree and
have reduced the reserves to point that has
induced greater frrnness in the money market,
with indications pointing to higher quotations
for loans before the end of the year The local
hanks have been heavy losers to the government
in the last few days as a consequence or the
payments on Panama bond account but as much
of this money paid over was for the account OF
interior concerns the loss TO the city banks Is
only of passing significance, though important
enough TO advance both call and time loans. The
Brazilian coffee loan also is something OF pass
ing factor In the market. The stifening in loan
quotations has served 10 weaken sterling eX-
change, and result Of this movement the
chances do not favor further heavy gold exports
TO Europe Paris is still in the market for the
metal and will take It from London until efforts
are made at that centre to check the shipments
The Bank Of England is in a strong position. as
compared with its average holdings Of the last
five years while the Bank of France holds more
gold than at any time in its history
The appointment of a committee by Governor
Hughes TO investigate the speculation in stocks
and commodities welcomed by the financial
community which is as anxious for the elimina-
ton Of any abuses that may exist as are the
general critics, faultfnders and moraliSts who
can find no good in Wall Street, without the
operations of which the trade and commerce of
the country would be hampered TO the extent
Of Generalization There are black sheep in
the Street and dangerous practices are followed
by certain spectators that tend to weaken
public confidence in stock exchange operations
but the investigators Will find that speculation
as a rule is decentIy and legitinately conducted
and that in their investigation they will have
the hearty cooperation Of Wall Streets big
and little men. The action of Governor Hughes
was not taken adverse development for
the advocates Of higher prices, and no attempt
was made to convert it into market factor.
President-elect Tafts remarks at the Ohio din
ner the tariff and the Sherman law
satisfactory 70 the average in the Street,
though the bear element used his ideas
argument for lower prices at a time when the
market had been bulled TO standstill and
ready TO go down on the himsiest sort of rea-
sons London's selling OF American stocks on
the Venezuelan Developments the theory
that the trouble might involve other powers.
and the speculative attack on American Smelt-
ing based the vulnerable position of the
stock at q time when trade competition was
reported. were not without adverse effect upon
speculative sentiment.