New-York tribune., 1908-12-03
FINANCIAL AFFAIRS
STOCKS PRICES DOUN.
Realizing and Bear Pressure Hurt
Vdlues-GOld Exports Begin,

. In the greater part Of the five hours of trad
ing stock market values showed iTregularity,
with decided weakness in many of the promi-
nent shares in the afternoon, when the volume
of realizing and bear pressure heavy
enough to offset the buying power infiu-
ence on quotations. The character Of buying
not at all impressive and represented little
beyond the operations of the room element, ex-
cept in the Rock Island issues, which again
were taken by substantial interests, who gen
orally in the past have been associated with the
speculation in these securities. The proposed
new financing by the St. Louis & San Francisco,
Island preferred. the transaction will lift
burden from the Rock Island. leaving the latter
company free to consider its own immediate
needs. The Rock Island people have splendid
proposition and the development of the property
ought to place the securities on a much higher
investment level. The publication Of the Harri-
man earnings for the month Of October, show
ing falling off IN gross for the Union and
Southern Pacific. but large gain in net for
both companies failed to stimulate buying of
the shares. which in the last hour were among
the weakest features in the market. The con-
tinued heaviness in the metal issues especially
United States Steel common exerted adverse
effect upon speculative sentiment. but in ffnan~
Cial circles the movement of this group Of stocks
was not considered at all surprising in view Of
the excessive bull operations recently conducted
in the securities.
Developments IN the metal market in the last
week have not been particularly encouraging,
but there is nothing in the metal situation that
ought to create alarm in trade or stock market
quarters. The copper and smelling shares have
been affected to some extent by the decline in
the price Of silver. The copper mines have in
silver large by-produCt and the low price for
the metal will make some inroad upon the earn
ings of the copper companies, while the position
Of the silver market has caused the suspension
Of operations among some OF the producers.
which. In turn, naturally has injured the smelt-
ing interests The iron market has quieted
down, and no great activity IS looked for until
after the turn of the year The general mar
ket with the exception of Rock Island preferred
and a few other low priced railway issues.
closed from 1 to 2l2 points under the best
prices of the day. which we're recorded IN the
first hour Of business. The Gould shares were
strong features in the morning N report Of
the formation of 4 holding company for the
Gould properties. but they lost their advance in
the late weakness Missouri Pacific selling from
s7h to 64A, the closing quotation On the de
cline stop loss orders were reached in many
stocks and liquidation Of these accounts served
to improve the technical position of speculation
The announcement Of the beginning of gold
export movement was not factor in inducing
sales of securities.
II gold exports continue in volume money
rates at this centre doubtless will move to
higher level. but the general position Of the
money market does not suggest the development
in the near future Of anything approaching ex-
cesSiVe rates for loans. The Bank Of France
long ago adopted a policy of increasing its gold
holdings, irrespective of current needs. and a
consequence it takes advantage of every oppor-
tunity to secure the metal in London and New
York. At present both New York and London
making objection to shipments to Paris
but it is conceivable that in the event OF con
tinued demand for the account OF the French
capital rates for funds in the United States and
England will be moved To a level that viii check
the outward flow of the metal The movement
Of gold between countries depends almost en-
tirely upon rates for money. Gold goes to the
point where the demand is the greatest. and
cept in times when the shipments from
try are based upon the liquidation Of that coun-
trys securities a result of A loss Of confidence
on the part of investors there need be no occa-
sion for alarm over the announcement that gold
IS TO be exported. In the local exchange mar
ket there has been scarcity of commodity bills
in recent weeks and this. together with heavy
speculative realizing in the stock market by for
eign operators, has created an exchange situa-
tion which under existing rates for money at
home and abroad has made possible the ship
rnent OF gold to Paris at a small profit The
loss on gold exports in the current week and the
heavy payments by the banks TO the Sub-Treas-
rirv doubtless VIII be reflected in a reduction I'm
the cash holdings OF the Clearing House banks
in Saturdays statement Of bank averages and
probably in a firmer tone in the money market
Rates as a rule showed slight advance yes
terday.