New-York tribune., 1909-07-22
FINANCIAL MARKETS
HE4TY STOCK SELLING.
Bear Pressure and Rcali@ing Re
ported Large Gold Exports.

Strength in the early dealings in yesterdays
stock market was followed by period of ir-
regularity In which the general tendency was
in the direction Of lower quotations. and While
some improvement subsequently was recorded,
afternoon movements a rule reflected the
effect of liquidation and bear pressure in
gradual decline which left last prices materially
below the closing of the preceding Gay. Active
selling by foreign houses and more aggressive
pressure against United States Steel induced a
bear demonstration throughout the list, but
stocks appeared to be well taken. and from the
character OF the transactions IL appeared evil
dent that the larger speculative interests that
recently have been operating for higher levels
were working. though with disappointing re-
suits. against anything in the nature OF sharp
reactions from Tuesdays prices. which on the
average were the highest of the year. AS de-
Clines must have some explanation other than
that provided by technical conditions. the Street
found in the heaviness of United States Steel
common reason to believe that Mr.. Morgan
would not countenance increase in the divi-
dend at the next meeting Of the board OF d.
rectors Notwithstanding the fact that the ad-
vance in the price of the issue in recent days
was said to indicate determination on the part
of this eminent financer to insist upon a larger
distribution. Steel common has discounted an
advance in its dividend, and If the conservatism
that Iva vs. in the past has marked the dellber-
ations and decisions of the United states Steel
managers is observed at the forthcoming meet
ing better dividend VIII be put off for future
consideration, while people who would like 10
own some of the stock may be enabled in the
mean time to buy IL at cheaper figure. Wall
Street also found in the hitch in the tariff con-
ference an argument for lower prices. The best
argument for a decline is the high level at which
securities are selling and the recent transfer of
stocks from strong TO weak hands The chief
declines of the day were made in the late trad
ing when losses Of point more were
corded by many of the active issues. United
States Steel closing at net loss of l q; Read
ing PA Rock Island, /; Southern Pacific. "a,
and Union Pacific u. The last named sold at
a new high record earlier in the day, at 19913.
ending pa points under its best.
Interior banks are beginning TO supply money
ir larger amounts to customers whose needs in
connection with the handling Of the crops and
general mercantile revival becoming moro
urgent, and in the course of a short time this
movement will. from all Indications be reflected
in heavier demands by out -of-town institutions
upon their balances at this centre Unless all
signs fail active business boom Will follow
the elimination of tariff discussion a factor
of uncertainty in the situation. and bank
loans already are heavily expanded while there
is no certainty of foreign exchange conditions
moving sufficiently in favor of this country to
permit ba mixers TO bring in gold from Europe
the crop moving period promises to open with
the accompaniment of gradually hardening rates
for money. Notwithstanding the current easy po
sitfon Of the money market. Disturbance In the
money market may be avoided by the operations
Of the emergency currency measure but condi-
tions that may be brought about by this meas
ure while affordng temporary source of relief.
viii tend 10 promote imitation and create stu
afiGn showing the extreme necessity of sensible
currency reform in this country The recent call
by the Controller of the Currency upon national
banks for reports of conditions of June %
showed that since July -, 1908. loans and dis
counts of all national institutions had increased
S42O. POI 9S4, against increase in the same
time in cash Of S36.S97021, not including bank
note circula ton. which presented gain of S2I-
64S,320, while among assets there was an IN
L. TfNf~ q
tional bank note circulation is increasing, while
best money is leaving the country, and the
fact that since January more than $I4O00,0o5
in gold has been shipped from the port OF New
York, with Indications pointing toward addi-
tional exports to Argentina, suggests d situation
that is not at all pleasant to contemplate. es-
pecialy in view of adverse foreign commerce
conditions
The expansion in the country's national bank
loans, together with that by other institutions,
represents to considerable degree operations
in the speculative markets. which must suffer
when the requirements OF trade compel hquida
tion of loans against commitments in stocks and
commodities. The banks in the last year have
added heavily to their securities holdings ana
already tendency To take profits on purchases
made at bargain levels is noted al this centr,,
the desire 20 convert paper profits into cash,
however. being secondary TO the necessity of in
creasing cash resources in preparation for tn.
business and crop prospects are most encourag-
inS and while there is reason to believe hat at
the next session OF Congress something positive
IN the way OF currency reform will be accom-
piished the money market outlook does not
warrant the purchase of stocks at high prices
100000 viii be shipped TO Buenos Ayres too day.