New-York tribune., 1908-07-27
THE FINANCIAL MARKETS
srr171f1yL ATION OF STOCKS BY STRONG FINANCIAL
INTERESTS
Money Rates Easy but Dectne IN i"e''" h"o""s ~
1;ober Q.yototous-Buiness Conditions Improve.
THE WEEK IN WALL STREET.


vestrnent account by the public and asss'e'
sive operations the bull side Oh 'he ntiI.a n+ir
ket by powerful Wall Street oos "eie ,,1
influences III carrying values to higher eeei
in last weeks market 1ndf ed. new i,Sii
ords for the wear were made. by the maJoli.s "
issues while the general rsmge or quo'a',o -
was well above the best sures OF .lin,, tIe las
twelve months. The fact that coinl.,is'-o ~.
houses were active buyers Or outsiders u,u - ~
lead to a widespread distrI oution OF s'ochs Hs. -
the people who were thu heaviest holu0,''
though. of course, the opportunity 10
profits was not neglected by many pt op -
who had been waiting for the oeVeiop -
an inquiry for securities flt IN the puoIo' ~
side narticination in stock market dealings was
based on the hetter outloOl in trade elrcie9, o
the belief that Mr.. Bryan Will be oele .t
November on the favors BILE progress Vi ~
crops on the ease of montsr and on the lrpio
ment in sentiment broui ht about py seVelaI
weeks of advancing valut s, Advancins -,
in securities for a week OF more are quite iiheiS
TO encourage a belief on he part OF coiiiiii IN
house interests that com litions are lar ~ pe.'et
and stronger than is gen rally assumed anu lls'
the psychological nome TT has arrived loi '
nurchase of stocks AS III the psychological mo-
ment that came mum > er OF weeks ago ~.
ouotations were far und q T the current leFei, W
the fact that time has passed does not no"
eyer preclude the pos ssibility of further I'M
.,ro,ernant in values Tfrofts from this level on
will he smaller than tlstse which buyers at 'le
low prices of the year are now aoe TO secuI - o
their sales The cha noes Of sharp reacti'ii'
that NAV wipe out mall margins are more
promising than they tsTe a few weeks ago. anu
the need of discrimina ton in market opei
&c vastly more import mt just now than IL was
,rben ouotations wer from 10 to 70 poihts
lower. -, .,
If is quite evident Il lat the so-called Dig men
are not vet ready to ;iquidate their speculative
,.oJ5;,,rs brt even THIS fact will not prevent
substantial reactions. It should be borne III
mind that values are tfrom % to 90 points above
the panic prices of last fall, and that within
the last two weeks ae technical position OF 'iie
market has been weakened by the covering VI
a large short inter est, while it should be re-
called that there nefer has been Presidentlal
campaign without II accompaniment OF po-
ltical scare in Wal Street. From now on II
NAV pay to buy for cash only or else on mar
gins large enough carry one through extensive
nassing breaks in fprices There is reason
for the belief that investors will be able to Sc
sure stocks boa ds at great reduclohs from
current quotations. but there Is ample reason
for caution on the part of the trader who buys
stocks on borrow money. In the last week
there was act i've absorption of first class
stocks and a bigi buying movement in railway
mortgage issues 1iDr strictly investment account,
this feature of ths9 market presenting one OF the
most encouraging; signs Of coming revival IN
business yet pre- ;ented. Investors do not buy
if they feel there is uncertainty over the future
of investment liz They know the value ON
their investment. depends entirely upon the con-
dition Of the corantrys industries and as a con-
sequence they find out something about the
trade situation g3efcre they place their money.
They also would not buy stocks if they thought
Bryan policies Arere to be adopted by the coun-
try Therefore last weeks movement in Sc
curities-that j s. the expansion in dealings rep
resenting a wholly public investment demand
reflected confidence among people with idle
funds then. hands in speedy return OF a
stronger indu trial situation and the triumph
OF the Republic party in the fall.
There has ls zen more actual Improvement in
trade than gr neraly believed. Some persons
continue to SCI no change in the countrys bust
ness but the fact remains nevertheless that in
nearly every line there are unmistakable signs
of better tinss. Business men do not look for,
neither do thsy DESIRE boom at present. They
want a gradI al return of normal conditions, and
they believe that is just what is taking place in
the industriai world. The iron and steel men DO
not expect q full revival before spring, but they
find every vidence that this revival is under
way The crops are making such favorable
progress and will add so much TO the purchasing
power of the country that the Western people
who at V times have been important factors
in stock market operations again are active in
speculation, basing their trading upon their oo-
servations of the present condition of wheat
corn oats other cereals and cotton, and on their
knoyyledses of the meaning OF bountifu harvests.
Commissidn houses that have direct wires to all
| the import ant interior cities were heavy buyers
| of securift last week, the best figure OF TINS
| uraIIy til ease in money encouraged heavy
| operations on borrowed funds and the decline
Friday presented some indication that a few
stock acC cunts had been built up by small spec
| ulators 1gho could buy hundred shares on
| 3 or 10 per cent margin, but who had no fur
| ther nsslns to meet call for additional funds.
| Money is cheaper than stocks. Money cannot
| be mad. at present by selling stocks and lend
| ing the. proceeds in the loan market, while, on
| the otl1er hand. money can be made from the
|,F JIT1dS
Welding far better returns than can be secured
| on loars Traders on small margins believe that
| under current conditions stocks carry them
selves, and that there is no chance of loss in
| buying at prevailing prices There are very
| good hances for losses in reckless speculation
| at this iuncture. Assuming, however. that the
indica.i ions OF industrial Improvement will null
| tfplv and that Bryan will be defeated. there
| shouui be further improvement in values in the
| courss Of the next six months. The outlook Is
so far yora bic that investors may we'll forget the
/ uneaa ,iness they have experienced in the last
! eight months of unsettled conditions.
GOVERNMENT BONDS.