New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1908-10-26
THE FINANCIAL MARKETS
WALL STREET BUYS STOCKS ON BELIEF OF TAFT'S
ELECTION.
Financial Confident Conditions Soon W Be
Normal-Money Rates EosyBeer Railroad Earnings
THE WEEK IN WALL STREET.

FACTORS underlying stock market movements
are strong enough to suggest further enhance
ment in values. notwithstanding the enormous
appreciation that already has been recorded
from the low prices Of the year Fundamental
conditions are sound. and the election Of Mr..
Taft appears to be assured. If by any Unfort-
innate change in sentiment among voters Mr.
Bryan should be successful, estimates regard
Ing the future of the stock market would have
to be revised. but based on current indications
II is hard TO figure out the possibility of ma
jority Of the electoral votes going to the Demo
cratic candidate Wall Street seldom makes
mistake the outcome of elections and if stock
market quotations to be taken trust
worthy indication of the way the election will
go. no man need have fear over the outcome
of the November voting. Prices for stocks. with
only minor setbacks, have been advancing for
the last six months, and though the election is
close at hand there is no sign of uneasiness
in the banking community to results, a re-
Election of which is presented in the failure Of
professional traders to shake out stock or bring
about important declines in values. In last
weeks dealings the undertone of the market
was firm until Friday, with some days Of posi-
tive strength, especially in the shares which are
known to be backed by the strongest financial
interests in the country. Moreover, there was
at times an active commission house demand
for the better class of securities based on the
belief of a Republican victory and a big bull
market following the counting of the ballots.
It may be well to note at this juncture the
fact that many speculative holders Of stocks are
bulge that may develop on the day after election
in the hope of getting their holdings back at
cheaper prices. and for this reason caution
should be exercised in the purchase of securities
on margins the day after Mr.. Tafts probable
election Heavy sales on the announcement Of
Mr.. Tafts election would be strictly in line with
speculative precedent Wall Streets big specu-
lators sell the publication OF good news and
generally able to repurchase at cheaper fig
ures|as they did for instance, in the Mckinley
campaign and victory, and there is doubt
that they will act on similar lines following
Bryan defeat. Republican success will be the
signal for a tremendous increase in activity in
the country's industries, and any reaction that
may develop IN stocks on realizing movements
will be taken advantage Of by powerful interests
to accumulate further lines of securities to hold
for one of the greatest bull markets in the his
tory OF Wall Street. At least this is the argu-
nent put forth by the men who are actively
identified with the Street, and they Will have
all conditions in their favor there IS good
reason why their expectations should not be full
filed. The abundance Of money throughout the
country Will make our Industries hum and will
supply the speculative community with the
funds necessary for the furtherance Of a bull
movement that may carry values to an inflated
level Public followers of the market will then
be glad 10 buy stocks which they would not
touch with ten foot pole at this time last year
when prices were crumbling under the influence
of the financial panic, but It may be wise for
such operators TO make outright purchases Of
small lots rather than the purchase Of large
amounts Of stock on borrowed money. All bull
movements are accompanied by big reactions
that serve 10 wipe out the small margin specu-
lator in the interests Of profits for the big men
Wall Street IS now counting on 225 for Union
Pacific and corresponding advances in many of
the other leading issues but unless the public
operator is blessed with large resources he
would better defer his purchase for a good sized
post-election reaction.
In all lines of trade conditions are far stronger
at present than they were a few months ago, ana
in the event of the election of the Republican
ca indicate complete accomplishment of normal
times soon will be effected in our industries.
Heavy orders are ready to be placed on the sue
cess Of the business mans party. If Mr.. Bryan
should be chosen however the business man
will again resume a hand mouth procedure
It is no wonder, therefore that from all parts OF
the country business men are insisting that the
theorist from Nebraska whose ideas are based
on economic fallacies. must be defeated
Politics occupied the chief place in Wall Street
discussions in the last week, and operations as a
rule were based on the belief of a Taft victory.
The Street for weeks has been d1scounting Re
publican success, but perhaps in the current
week the near approach of the balloting may re-
suit in inducing a waiting policy on the part Of
all stock market interests. Stocks in strong
hands, and the floating supply is small Bear
raids are not successful and the only hope of the
bear element lies in a Bryan tidal wave or in a
widespread realizing movement on the good
news that the Republican policies have been in
dOrSed by the people money was easy through
out the week at home and abroad. There was
little inquiry for funds from the interior, the de-
rnand from out Of town in connection with the
financing of the years harvests apparently hav- |
ing been satisfied. Time money developed some |
signs Of sfrmer tendency in the near future. |
and the condition Of the national Treasury sug-
eested that at no remote period there would be /
a call upon depostary banks for part Of the |
federal funds held by the latter. The Balkan |
war scare was not in evidence as a market fac |
tor Europe bonght back many Of the stocks |
sold in this market when the trouble in the Near |
East first developed while all European markets |
showed in higher prices the absence of uneast- |
ness over the situation. The Bank of England |
made remarkably strong exhibit showing a |
nroportion Of reserve 10 liability higher than at
any corresponding time since 1904. while re- |
duction in the price of bar gold at the BRUSH |
capital indicated that London would not oppose !
efforts of Paris 10 take further amounts OF the (
precious metal Money at this centre doubtless |
will move 70 higher level before the end OF the
wear hut conditions too strong to warrant |
the belief that there will be any disturbance