New-York tribune., 1908-08-17
THE FINANCIAL MARKETS
BULL MOVEMENT IN STOCKS CHECKED BY HEAVY
SELLING.
Orerspcuon Injuries VauesMoney Conditions and Serhng
Exchange
THE WEEK IN WALL STREET.


with final prices generally below the closing OF
the preceding week. though net losses as rule
were not extensive. Speculation for the first
time in fortnight showed the effect OF heaVy
realizing sales: it reflected greater disposition
on the part of the professional element to take
position on the short side, and it indicated
uneasness In many quarters over the extent oI
+be advance of the last month which was con-
sidered bv some conservative wholly out
of proportion to the improvement that hao taheii
place in the conditions governing the actual
worth of securities There was however no
indication that the larger interests had aoan-
doned the campaign for better quotations II
recognized by this element, however. 'hd.
the company on the bull side was not as eooo
as IL had been and that a process OF eilmina-
ton of weak accounts would strengthen the
chances of ultimately better quotations. In the
early part of the week there was large accu-
mutation of buying orders for the account VI
the so-called public that specuates on smah
margins and the presence in the market OF TINS
sort of buying induced cautious selling bv the
professionals whose operations were rewarded
by the tendency of prices on Thursday ana
FRIDAY when heavy losses were recoroeo IN al
the active issues The downward movement, OF
course was accompanied by rumors affecting
adversely the financial standing of several COM
panies but the chief reason for the weakness
Law in the fact that the market had gone up 100
fast-too much overspeculat1Un ana enthusiasm
at q time when values showed an appreciation
of f-or, IN 70 5n noints as compared with the
manic level of 1907. Quotations at present are
higher than they were at this time year ago,
and yet with money at its current leNei' n1
with dividends far above the return on money,
r,rices I'm the greater number of issues are MOI
selling AT ANYTHING approaching an eXoroltan1
range assuming that business conditions IN the
country will continue to move toward the leVei
of prosperity - ,s
Business throughout the -Unlteo 9'e.
s+iu f1uu but it is better than 1t was IN the
snrinr while all indications suggest that Tue
return of a normal situation is actlVeiS uituI. ,
y-av The iron and steel trace 10
stronger than 1t was few months ago. ran
roads are showing decrease in their losses as
coronared with recent weeks. bank clearlhss
ora larger and the general demand from CON
srmers of all lines of goods is lncreasias ~ ~
crops promise good harvests. Whle hisli p
for farm products assured Inc ehec' Va
big crops at big prices upon the PuI ne .he
mower Of the great agricultural section OF tlie
country will be reflected in better railroad earn
ings. in expansion in the manufacturing neIu
and in larger foreign commerce huloPeo
niles of grain and cotton are hshI, anu % ~
I7,,rorean crops are not heavy. Foreigners VIII
have 10 come into this market for their cot'oh
and breadstufrs and they will be compeieu "
nav a good figure for what they want 10 ouS' y
big foreign demand for our FOOD proouC'S' "
cotton for steel. iron and copper is lholca'eu'
2 demand
favor of the United States and aollty on 'i, -
mart of New York to draw gold from EUROPE II
money conditions at this centre shoulu iia,
importations of the metal necessary ,lo III t,uu-
ton to exports of merchandise as ah ee =,
maker in our favor. the exchange market VIII
-ocai,-a further assistance from sales OF Anerl-
can securities abroad. More commence II!
American investment issues Is iePo 'e
EIrope In recent weeks there nave oeeh
,,u,ober IF large purchases of prime American
or
-.Aection of which has been presented IN the
course of sterling exchange quotations
As has been frequently pointed out IN this
column the prospects of a material oeclHe ii
securities values, as long as money ~
cheap and no radical change takes place III ui!
aerlzing conditions affecting adversely intrinsic
values are unpromising. Time money can ue
borrowed for six months and invested IN 'ile
stock market in issues upon which the dlVluenu
1ie1d will more than offset the interest on the
oo,,a,. recommendation and even if prices for
e+oc,s do not advance from the current Level the
b,,ver faces little chance of a loss Ihe srnall
p,Iblic operator. however. does not porro" money
himself and he does not have large ciousii
margin to stand passing declines he loauS
up with more stock than his margin var iaii,a' nv,
he nvramids on paper profits and generally sens
at a loss The small operator Is not IN posi-
.io, 70 make time loans at the banks ard puy
stocks to hold but the substantial lnteres's az
and this is lust what they have been oolhs'
r-Ia,, have not distributed their holdings TO any
extent and apparently they do not intend 10 at
-a+ love, They have sold enough
stock TO make market for the niue lello"s'
1,bo have promptly suffered losses Technicaiiy
the market is stronger now than II mas oeeh III
+b. last two weeks and there is no reason 10
e,,nnos. that last weeks slump marked the pe
ginning Of successful bear campaign. A
reckless class Of spectators was IN the market
in the first part of last week and their opera
4ions we're SO involved in manipulation OF the
hat he
in the Street including the so-called morgan
interests were quite cheerful over the oecnne'
narticrlarly as strenuous efforts were pelhs
made TO attract the sort of speculation tnat al
u-avs ends in disaster. The leading bankers ana
roiiroad interests have been working to bring
about slowly appreciating market IN "hich
the public of the substantial sort would nave
confidence and 1t is no secret tnat they. worked
energetically to kill off the furious speculation
that began to develop week ago Their ef-
forts were quite successful
Money continues in heavy supply at this cen
ire AS vet there has been no active demand
for currency for the account Of the west ana
South but bankers look for the development or
: ,.-ee outward movement of funds in the near
fut1,re in connection with the financing OF the
haryests The New York Clearing House oanks'
tbe non-menber banks and the trust companies
hold more than s500,0 100000 in cash. and their
outstanding loans are not large in proportion to
their deposits Their lending power has been
tremendously increased in the last SIX months
and borrowers can secure money 10 run over the
end of the year at extremely low rates Inc
vast accumulation of funds In the United states
and in the European banks viii prove a power
full lipbuilder of business conditions 1t is not
likely that there will this fall be anything ap-
preaching the high rates for funds that usually
have prevailed in the autumn season. as, In ad-
dition TO big bank holdings at this centre ready
70 meet the requirements of other places, there
will be emergency currency If needed