The sun., 1908-08-30
FINANCIAL AND COMMERCIAL.
SAruRpAY. Aug. 70,

SATURDAY, Aug. 20.
At the opening Of business to-day small
advances were shown In nearly all the
active issues, but in many instances those
were lost in the first half hour during which
period the trading was devoid Of any in
terest whatever except that professional
operators of the smaller kind were inclined
to sell short for turn in the belief that
yesterdays reaction marked the beginning
OF downward swing Of considerable pro-
portions. At che end Of the first half hour,
however. the character OF the market
changed. Southern Pacific resuming its
upward movement. and its course being
quickly followed by the United States
Steel Stocks Consolidated Gas. Union Pa
cific and many others. the market becoming
broader than it was earlier In the week.
and many issues reaching the highest
levels touched within tho last few days.
About the middle Of the second hour the
activity increased to decided extent. and
IL was at about this time that prices reached
their highest levels for the day. the specu-
lative short interest put out yesterday and
in the first half hour this morning hastily
buying in stocks TO cover contracts. COM
PEELED by the same manipulation that had
already forced the covering Of important
lines OF stocks when 1t was practically inn
possible for the bears to borrow the supply
Of stock which they needed to make de-
iveries. The burst Of activity did not con-
tinue to the end Of the session. 1t lasted
only about fifteen minutes. and In the last
quarter Of an hour the market was quiet,
with tendency to sell of slightly under
the usual week end profit taking movement.
New high records for the year were made
by Southern Pacific. Union Pacific and
Consolidated Gas, and United States Steel
duplicated its years record. An interest
ing stage has now been reached. as the
average price Of the active stocks approxi-
mates the highest Of the year, and profess
sional traders are likely to be influenced
greatly in their views by the course of the
movement away from the present level.
The earnings Of the Reading system for
July showed decrease Of ss4s. $50 in gross
and Of little more than half that amount
In the net Of the railroad. and Of 81. .001 ,s75
in the gross but only $s7. .5e4 in the net Of
the coal company. the net Of all companies
amounting to S,2s2 ,o22. being $S1s.os3 less
than in July last year. Canadian Pacific
showed for the month decrease Of $7i5.2s4
in gross and $232. $50 in net. The bank
statement showed an increase Of %, 8ss, 400
In the loans OF all institutions as result
Of the activity in the stock market. gain
of nearly IS. SOC. 900 in cash and of $2.21l coo
in the surplus reserve.
The commercial agencies report that re-
tail trade is quiet and that in general con-
servatism and caution are still evident.
Collections are irregular. but with the ex-
ception of the cotton mills there is less idle
machinery in the leading industries. In
60
the failure Of the improvement to come up
to the expectations engendered by early
optimistic predictions. The total bank
clearings Of the United States amounted
for the week to approximately 81 ,14e. 300 ,O00
againct s2S41 .eo4. 1888 last week and s2.254.-
lo2.4s7 in the corresponding week a year
ago. the decrease as compared with last
year being 4.s per cent. During the week
the price Of cotton made low record for
the present movement. Notwithstanding
damage to the crop from wet weather and
Hoods in the South. the primary cause Of
the weakness being found in the poor de-
mand for cotton goods and the necessity
on the part of New England mills to curtail
output. Grain prices were firm. rain inter-
ferine with harvesting operations in Mani
toba and temperatures being generally too
low for corn to make good progress. Rail-
road earnings showed no substantial i'm
provemept. although the full statements
coming forward covering operations for
July were characterized by heavy reduc-
tions in operating expenses. which made
the net returns relatively favorable. Irri-
tation was felt in many quarters over the
untimely marking up OF prices for certain
prominent stocks, as this. 1t is feared. will
destroy the main argument of the roads in
favor Of higher rates when the matter is
taken up later in the year. All considera-
ton for the best interests Of the railroads
and OF Wall Street in general has been
totally disregarded by those responsible
for the marking up operations. who have
only sought to make profits for themselves.