New-York tribune., 1908-08-11
FINANCIAL AFFAIRS
STOCKS ADT4NCE AGAIN
Heary Commission House Buying
Bonds ActiUe.

Transactions in Yesterdays stock market were
heavy in volume, the trading was Wen dlSul-
buted and prices enjoyed further Improvements
with new high records for the year IN the
erearer number of active issues There was
large increase in public buying, the character OF
which however, was not at all impressive as
far as representing a widespread demand TOT
securities from interests able 10 buy for cash or
else on large margins concerned Every
commission house in the Street reflected the IN
fIuence of the demand for stocks from out
side spectators of small means IN thelr total
of commissions for the DAY, but not belng puo-
lie benefactors the commission brokers found no
reason for admonishing their customers OF the
danger of buying on slight margins at current
advanced figures. Some of the more active pro-
fessional traders who did not like the accumula-
ton of small orders in the market and the signs
of manipulation by the interests supposed to be
behind the bull speculation put out short lines
in the morning, but were compelled TO cover at
loss before the close as consequence OF the
well sustained buying power throughout the last
two hours of business. Nevertheless there were
a few floor room operators who went nome snort
of stocks their attitude being based on the be-
lief that the advance had been too rapid ana
wholly out of proportion TO the Improvement
that had taken place in the world OF business
There also were many traders who though bear
ish at heart were unwilling TO operate on the
short side because of their understanding that
the so-caled Standard Oil crowd is working for
higher quotations. Advances of from to
greater gains in ST. Paul and Sugar Refining
which closed UP 3 points, and in some of the
specalties. The NEUTRALITY-SUSPICIOUS. Is
sues were strong features: also American 1ce'
Atchison Baltimore & Ohio, Colorado Fuel ana
Iron Reading Brooklyn Rapid Transit and the
Hartman shares American Smeters ended
fractionally lower after selling above Saturday
closing Money was easy. Bonds were active
Commission? houses which handle a large wire
business report increased buying orders for
o+oI,- a1Iyn nf orders
are of the shoestring variety representing pur-
chases on small margins by overenthuslastlc
operators. who apparently believe the greatest
bull market on record has begun and that the
upward course will be one long uninterrupted
advance The idea that a bull market means
a continuous advance without recessions is as
old as the Stock EXchange-that is, with the
ever green public The fact that money is easy
and business conditions more promising does not
mean that prices for securities will advance from
This level without serious setbacks, but the
ocerators who are rushing into the market from
all parts of the country believe otherwise. ANY
body who has 81 can make -. according 10 the
clever Mr.. Lawson, but II may be well fQr those
who have 81 to accumulate So more as a~reserVe
fund, and then to operate only on the basis or
81 SPECTATORS who afford 10 speculate in
only 10 shares on margin are puylhs loV
shares. The who can put up 10 10 per
cent margin on 100 shares believes he is in
sured against loss. If the market sells off a
poinf or more the ordinary operator becomes
frightened and sells, losing as consequence
a part OF his margin. He rebUys and has not
the sense TO take a small profit when in sight,
generally pryamiding on his profit, only TO be
come upset again when further reaction de-
velops with the accompaniment of another cut
in his margin. Then the broker will call for
more margin, and, rule, there is none to
offer. This class of operator makes good pick
ings for the big men. The latter at present are
willing to let the small persons have all the
stocks they may call for, knowing quite well they
can get them back a. lower prices
The idea that the public viii control the
speculative end OF the stock market is not well
founded The larger speculative interests have
recovered the losses sustained by them last fall.
and they absolute masters of the specu-
lative situation They will peddIe out stock to
the public, and the public that buys borrowed
money will be able TO carry the burden
through days of recessions. Conservative men
throughout the country active buyers OF
stocks for cash at the low prices OF the ye9r
These purchases were made for permanent IN
vestrnent account and the stock represented will
not come on the market But the floating sup
ply available for speculative purposes is large
and the little margin fellows are crying for IT,
Doubtless the general tendency Of prices is in
the direction OF a still higher level, but the
character OF business in the last few days sug
gests the usual number OF public saughters on the
way up. There has been tremendous advance