New-York tribune., 1908-08-09
FINANCIAL AFFAIRS
STOCK VALUES STRCAG.
Dangerous Manipulation Reported
Banks Gain IN Holdings.

Transactions in the brief session Of yester-
davis stock market were heavy while the move
rnent of values again was in the direction OF
higher prices substantial advances being mace
by many of the leading issues notably Heaolns,
which closed at a net gain or more thah
points.
Net Improvement as a rule well under
the maximum expansion, active realizing sales
in the last hour being responsible for mate
rial setbacks in many stocks, as in american
Smelters, for instance which ended the Gay
nearly points under its best; also Union Pa
cifc which closed unchanged from Friday
after an advance of more than L point. Ihe
general movement showed much manlpulatioh
and large distributive sales On the advance
little genuine commission house buying Tor ne"
account and disposition on the part or oanh-
ing interests to reduce their holdings the opera
tions of the latter apparently being based on the
reckless character Of the speculation
The fact that some of the low priced issues and
the specialties were moved up on operations by
the wholly professional element, while in various
parts of the list there appeared to be a break
from the conservative methods employed IN re-
cent markets, induced selling by operators OF
long experience, and there was some lndlcatloh
that short contracts being quietly put
out by oldtime floor traders who doubtless
realized that no matter how bullish conditions
might be the advance for the time mad been
oyerdone Commission houses that are anxious
to increase their bank accounts worthy ambl-
no
ness extremely seductive invitations to buy
stocks at to-morrow's opening, but conservative
houses that think of their customers as well as
of their bank accounts wrote market letters that
contained words Of caution In relation 10 pur-
chases at the present level
IT is understood the Morgan interests in the
market are in favor of reaction in prices,
though tbev are committed to the bull side OF
speculation for the long pull A reckless class
Of spectators has come into Wall Street IN the
last week. and their operations have been SO in
yolyed in manipulation of the dangerous type
that conservative men in the financial commu-
nity believe the best interest of the market
would be served by a decline large enough 10
impress upon overenthusiastic bulls the wis
dom of moving slowly at this particular time'
when prices are selling at the best level of the
year, above the level of this time year ago
and higher than at any time since the period
preceding the big break of March. 1907
The leading banking and railroad men in the
Street have been working to bring about slowly
appreciating market in which the public would
have confidence. but they find that the furious
operations of the last few days have frightened
many good buyers out of the market and nave
materially weakened the technical position of
speculation. The Morgan people are bullish on
the Erie and Southern Railway shares, but they
find little encouragement at present owing to
the tactics employed by wholly gambling ele-
ment which, If continued, promise to upset the
well laid plans of the people who are concerned
in establishing the Wall Street markets on a
basis that will appeal to legitimate investment
and speculative interests.
The Morgan party also is bullish on the Steel
shares The Standard Oil people are bullish prac
tically on the entire list, but they may find il
necessary to do some active work on the bear side
of the market in order to interrupt the operations
of men who are engaged In the occupation of
building up a market that soon would fall with
terrific smash simply from its own weight and
underlying technical weakness. In view OF the
manipulation now in progress and the extreme
advances enjoyed by securities in the last week,
it may pay intending buyers to wait for a reac-
tion and to buy only for cash.
The weekly statement of the Clearing House
banks. showing average conditions. presented
small gain In reserve above legal requirements
and a much lighter increase in cash holdings
than indicated by Fridays preliminary estimates
of the movement of money. In this statement
loans, in spite OF the great activity in the stock
market in the week, expanded TO only rela-
lively small extent, though in the return of
actual conditions. Of Friday there was an in
crease in loans Of SS.62s 100. AS result of all
changes the reserve of the associated banks
now stands at s5s224.275, which compares with
81 7s0, $50 at this time last year and ss271525
In 1906. The combined statement of Clearing
House banks. non-reporting banks and trust
companies shows material increase in cash
and a comfortable gain in deposits in excess of
the gain in loans. Cash in the New York bank
ing institutions amounts to about $500 600 O0O