New-York tribune., 1908-05-20
FINANCIAL AFFAIRS
STOCK VALUES LOWER.
Realizing and Bear Pressure Cause
Declines of from to 4 Points
-More Gold Engaged
Money Easy.

After g exhibition OF strength III Ile -eoiiS
dealings in the course of which new high prices
for the wear were made in many issues, the gem
eral market sold off under the influence OF heaNy
realizing sales and professional selling decnhes IN
the leading active shares amounting 10 Z points
or more Insiders-that is the interests when
have been behind the advance in the last 1e"
1eeks-apparently were disposed to encourage
moderate reaction. but they held the market SUI
fcienty in check to prevent extensive net losses
and at the lew points were buyers OF theH
favorite stocks taking good sized blocks or the
Hartman and Reading securities Traders VINO
covered their short contracts on the downward
movement reported no difficulty in getting thelr
stock. particularly in the industrials which IN
the late dealings supplied the weakest features
on the list, American Smelling, for instance,
losing I points There is some reason for the
belief that the interests whose buying OF this
stock in the last months has carried lts
price TO the present level have completed their
purchases and that traders who have heavy bull
commitments in the issue borrowed money
may not fare well in the immediate future. The
general market, as pointed out in this column IN
recent days invited reactionary movement as
result of its own topheaviness, and despite
the resources Of the bull interests further de-
clines will surprise. There Is too much
company the bull side, and the chief manipu-
lators may not oppose operations that Will shake
out the little fellows.
In the last hour the heaviest declines reported
on any day in many weeks recorded in
American Smelling Baltimore & Ohio. Louis
willie & Nashville. Northern Pacific Reading and
Union Pacific. but the market presented no evil
dence of generalization. while commission
houses that have been following the bull move
ment advised their customers of the probability,
in their opinion. of further advances The Erie
preferred shares and Southern Railway COM
mon and preferred among the few issues
that showed net gains. AS the Erie stocks are
now Classed in the Hartman group their
chances for improvement are considered brighter
than at any time in the last twelve months
owing to Mr.. Harriman's reputation builder
up Of impoverished railroads. Washington re-
ports that the prospects of currency legislation
at this session of Congress disappearing
were advanced by some traders as good reason
for the slump in prices throughout the market,
but as recent proposed legislation was not in
line with general and genuine currency reform
It was difficult for the ordinary market observer
to find any connection between the Washington
r11n,ors and the course Of quotations. Over
speculation on the bull side pulled the market
down Money easy and more gold was en-
gagged for export.
On the current outward course OF gold more
than $4,000, 900 has been shipped or engaged
and present indications suggest the probability
Of an enlargement in the movement. some for
eign exchange bankers predicting total exports
OF $50, 100000. In view Of the large idle surplus
in the local banks shipments OF the yellow metal
cannot be considered an immediate factor of
Importance. far as the money market is con-
Cerned. but a continuation Of the Withdrawals
for European account may develop tho fact that
foreign holders OF American securities have
taken advantage Of the bull boom in securities
the local Stock Exchange to hquidate their
holdings the result Of distrust Of conditions in
this country In quarters 1t Is said the
participation OF London bankers In the recent
Pennsylvania bond issue dispToves the, theory
that foreigners selling American securities
but for the Information of such quarters It may
be said that the London bankers who took the
Pennsylvania bonds already have resod a large
portion OF them in the United States and have
not found u good market for them among Eng
lish investors. despite the high character of the
investment. So much reckless speculation Is
going here in stocks, cotton and grain that
ii would not be surprising If European interests
should feel uneasy over the position of Ameri-
can affairs especially the current speculation
in securities is backed by the same people whose
vagant operations in high finance brought
about the collapse last autumn. The large sup
ply of money at this point naturally favors gold
exports. but ii is conceivable that prolonged
Outward movement Of the metal together with
further government Withdrawals from the banks
eventually would affect the faaacia! situation
20 q material extent