The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1908-08-23
Stocks Pass Through Period of Professional Manipulation
NEW YORK STOCK MARKET SHOWS
STRENGTH UNDER WILD
FLUCTUATIONS.

NEW YORK, Aug. 22.-Although the
New York stock market has been
through a serious decline since one
week ago, the net changes IN prices
are not very great Todays weekly
statement has an excess OF minus signs,
but several stocks, notably Southern
Pacific, has six points advance to its
credit Union Pacific has SA points, and
several OF the railroads are in the plus
columns. The list generally has de-
clined from one to three points net
The market. closing low ,oday, after
the widest fluctuations that have been
in the present movement. leaves the
situation where the best observers do
not know Whhre they ara at The bears
have been driving the market on special
stocks for four or five days, and have
made little Roadway The support OF
even the weakest issues on the list has
been phenomenal The Tears, after
breaking the prices on this and that
stock. find that before they have time
TO count up their sales checks the ham
mered stocks are back again nearly to-
where they started.
Money Cheap and Plenty.
The only explanation OF such facts isl
the unexampied cheapdess of money.
All the week money has been getting
more plentiful. and less costly. Last
Friday call loans were placed as low
as x OF ! per cent, and time loans as
low as > per cent. With this plethora or
available money at the service OF spec
ulators it is natural that traders should
buy stocks on every dip. AS a result
the bears no sooner begin hammering
at a given stock than buyers crop up
all around the room, and the selling IS
completely swamped before stock can
be broken three points, The recovery
is generally as rapid as the decline, and
the bears are quite often forced 10 cover
Immediately after the drive or at loss
later in the day,
Because Of this rapid-fire covering Of
bear selling, 1t is generally supposed
that there is not a large outstanding
short account, though the fluctuations
OF the short session today seemed 10
be brought about largely on short COW
ering by traders who were afraid 10
carry their holdings over Sunday. Butt
today. even under the heaviest selling.
when 5000 and 1900 share lots wereI
thrown upon the market, they were
readily absorbed. IN one case today
when q 800 lot Of stock was offered,
acteristic OF a dip in a bull market.
Discouraging to Bears.
This fact is very discourag ing Il the
bears, and all their plans are almost
Immediately uncovered and broken up.
The perEistency Of their attacks upon
the market is only equaled by the in
herent strength of stocks which defeats
them.
At the same time the character of the
big support of the market is only equal
to holding IT level. No disposition is
manifest to carry the market upward
beyond certain well-defined levels. at
least on the part of the big traders. |
Weaker houses at times make a diver
sion on certain stocks, but they come
back again. F1r example. a bull drive
was made todsv on Amalgamated Cop
per, giving IL a rapid three-point ad- |
vance, but before the holders OF long
stock could get their orders on the
floor il had fallen back to the old
figure.
In such a market il is impossible 10
settle on any salient facts upon which (
10 form an intelligent opinion. The
market closed today more irregular and
uncertain than it has been at any
time, barring the hour Of wild fiuctua-
ton between 1929 and II: 80. Ordinarily
this would mean a bear market next
Monday. But 18th volumes of money
IN the banks AID In the hands of lend
ers in the street. II IS entirely among |
the possibilities that the bulls will re-
cover their breath by that time, squeeze
out the shorts. and send the market
skywarG again. Such a course would be
easier now than at any other time as
the public IS waiting is not loaded
with long stock. and the manipula tors
would have quick and sympathetic re-
Spouse to any upward swing of the
market that promised anything like
permanenCe.
Trading Closely Professional.
Commission houses for a week mast
have had only a small effect upon the |
trading. It has been almost entirely